DGKC earnings are expected to rebound sharply due to higher sales and prices

DG Khan Cement Company (DGKC) is expected to post a major turnaround in its earnings for the fourth quarter of FY25, reporting a net profit of Rs2.2 billion, or Earnings Per Share (EPS) of Rs5.16. This is a strong comeback compared to a Rs1.7 billion loss in the same period last year.

What’s driving the recovery?

Three key factors have supported this sharp earnings rebound:

✅ Higher Cement Sales: DGKC saw a 29% year-on-year increase in cement volumes, showing strong demand recovery in both domestic and export markets.

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✅ Better Cement Prices: Prices have improved in both local and international markets, helping lift revenues and margins.

✅ Lower Grid Electricity Costs: A drop in electricity prices helped reduce production costs.

Margins & payout

• Gross margins jumped to 27% this quarter, up from only 8% in the same period last year.
• Despite flat earnings on a quarter-on-quarter basis, the company has maintained solid profitability.
• DGKC is expected to announce a dividend payout of Rs4 per share, rewarding investors after a tough previous year.

DGKC’s strong Q4FY25 performance signals a return to growth, driven by volume recovery, better pricing, and cost control. If these trends continue, investors may see even stronger returns in the coming quarters.

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Source: Sherman Securities

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →