PakStox Outlook

DG Khan Cement Company Limited (DGKC) reported its financial results for the second quarter ending December 2024. Key highlights include: Earnings : DGKC posted a profit of Rs. 6.2 per share for the quarter but declared no cash dividend. Over the last four quarters, the company achieved a cumulative net income of Rs. 6.9 per share, with no cash distributions during this period. Revenue Growth : Revenue for the quarter surged by 34% compared to the average of the previous four quarters, reflecting strong sales performance. Profitability : Gross profit rose significantly by 112% over the previous four-quarter average, driven by improved operational efficiency.  Margins : The gross profit margin for the quarter stood at 25.1%, up from the previous four-quarter average of 16.4%. Taxation:   The tax rate for the quarter was 27.4%, lower than the previous average of 36.8%, contributing to improved profitability. Nishat Mills (PSX:NML)  owns over 30% of DG KhanCement. D.G. Khan ...

DG Khan Cement Company Limited (DGKC): Financial Results - Q3 2024 Earnings per Share (EPS) : Rs. 2.69 for Q3 2024, flat compared to the same quarter last year. Nine-month EPS stands at Rs. 5.10. Dividends: The company is not yet in a position to pay dividends. However, improved margins suggest a turnaround in profitability. Operating Performance:  Sales in the third quarter decreased by 22% compared to the same period last year, reflecting the general economic downturn. However, margins improved due to favorable coal prices. Lower distribution expenses also contributed to a 9% increase in profit before tax. Despite this, profit after tax remained flat at Rs. 1.18 billion due to a higher tax expense of 39%. Profitability : High interest payments are a major drag on profitability. For the first nine months of this fiscal year, DGKC's financial charges exceeded 65% of gross profit. Note that the company had incurred a significant loss of over Rs. 7.2 billion in the fourth quarter of...