{"id":11420,"date":"2025-08-29T10:25:34","date_gmt":"2025-08-29T05:25:34","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=11420"},"modified":"2025-08-29T10:25:36","modified_gmt":"2025-08-29T05:25:36","slug":"dg-khan-cement-company-ltd-dgkc-turns-profitable-with-strong-margins-in-fy25","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/dg-khan-cement-company-ltd-dgkc-turns-profitable-with-strong-margins-in-fy25\/","title":{"rendered":"DG Khan Cement Company Ltd. (DGKC) Turns Profitable with Strong Margins in FY25"},"content":{"rendered":"\n

D.G. Khan Cement Company Ltd. (DGKC<\/a>)<\/strong> has announced its results for the April\u2013June 2025 quarter (4QFY25), and the company has made a strong comeback. After reporting a loss in the same period last year, DGKC posted solid profits this time, supported by stronger margins, lower costs, and reduced finance expenses.<\/p>\n\n\n\n

Key highlights (4Q FY25)<\/h2>\n\n\n\n
    \n
  • Profit After Tax (PAT):<\/strong> PKR 3.2 billion<\/strong> (EPS: 7.2)\n
      \n
    • Compared to a loss of PKR 1.7 billion<\/strong> (LPS: 3.9) last year<\/li>\n<\/ul>\n<\/li>\n\n\n\n
    • Revenue:<\/strong> PKR 16.8 billion<\/strong>, down 1% YoY<\/strong> due to slightly lower cement sales volumes (1.28mn tons, -1.2% YoY)<\/li>\n\n\n\n
    • Dividend:<\/strong> Final cash payout of PKR 2.0\/share<\/strong><\/li>\n<\/ul>\n\n\n\n

      What drove the profit?<\/h2>\n\n\n\n
        \n
      1. Higher Gross Margins:<\/strong> Margins rose to 31.8%<\/strong> (vs. 7.9% last year).\n
          \n
        • This was mainly due to falling coal prices<\/strong> and lower electricity tariffs<\/strong>, which reduced production costs.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
        • Lower Finance Costs:<\/strong> Finance expenses dropped 70% YoY<\/strong> to PKR 571mn.\n
            \n
          • This was driven by a 36% reduction in debt<\/strong> and lower interest rates.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
          • Operating Expenses:<\/strong> Down 2% YoY<\/strong>, thanks to reduced distribution costs.<\/li>\n\n\n\n
          • Lower Tax Rate:<\/strong> The Effective tax rate came in at 26%<\/strong>, compared to 44% in the previous quarter.<\/li>\n<\/ol>\n\n\n\n

            Full-year FY25 performance<\/h2>\n\n\n\n
              \n
            • Profit:<\/strong> PKR 8.7 billion<\/strong> (EPS: 19.8) vs. only PKR 0.5 billion (EPS: 1.2) in FY24<\/li>\n\n\n\n
            • That\u2019s a 16x jump in yearly earnings<\/strong> <\/li>\n\n\n\n
            • Revenue for FY25 grew 9% YoY<\/strong> to PKR 71.9 billion, while costs fell due to lower fuel and energy prices.<\/li>\n<\/ul>\n\n\n\n

              The bottom line<\/h2>\n\n\n\n

              DG Khan Cement has staged a strong turnaround in FY25. The company benefited from cheaper coal, lower energy tariffs, reduced debt, and lower interest rates<\/strong>, all of which helped boost margins and profits.<\/p>\n\n\n\n

              With a PKR 2\/share dividend<\/strong> announced, shareholders also stand to gain. However, with revenues slightly down in the last quarter, demand-side pressures are something to keep an eye on.<\/p>\n\n\n\n

              DGKC\u2019s earnings recovery shows how much cost efficiencies and debt reduction can strengthen profitability, even when sales volumes remain soft.<\/p>\n\n\n\n

              Source: AKD Securities<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

              D.G. Khan Cement Company Ltd. (DGKC) has announced its results for the April\u2013June 2025 quarter (4QFY25), and the company has made a strong comeback. After reporting a loss in the same period last year, DGKC posted solid profits this time, supported by stronger margins, lower costs, and reduced finance expenses.<\/p>\n","protected":false},"author":9252,"featured_media":6754,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[186],"class_list":["post-11420","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","tag-dgkc"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/DGKC-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/DGKC-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/DGKC-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/DGKC-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11420","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=11420"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11420\/revisions"}],"predecessor-version":[{"id":11421,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11420\/revisions\/11421"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6754"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=11420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=11420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=11420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}