DG Khan Cement’s profit plunges 35% in 2QFY24

Despite higher sales, DG Khan Cement Company Limited (DGKCL), one of the largest cement producers in Pakistan, saw its profit drop significantly in the quarter ended December 31, 2023.

As per the latest consolidated financial results, DGKC’s profit-after-tax (PTA) clocked in at Rs515.5 million in 2QFY24, a decline of nearly 35% as compared to PAT of Rs791.03 million in the same period of the previous year.

The company’s Earnings per Share (EPS) decreased to Re0.86 per share against Rs1.51 in SPLY.

The drop in profit is attributed to an increase in cost of sales and finance during the period.

DG Khan Cement’s net revenue increased nearly 11% to Rs19.76 billion as compared to Rs17.88 billion recorded in the previous year. Meanwhile, the cost of sales jumped to Rs17.1 billion in 2QFY24, as compared to Rs15.35 billion recorded in the previous year.