D.G. Khan Cement Company Limited (DGKC) released its 2QFY19 financial result on Tuesday, posting a profit after tax (PAT) of PKR 1,324mn (EPS: PKR 3.02), up by 48% YoY / 3x QoQ led primarily by a tax credit booked during the period under review.
This took the 1HFY19 profitability to PKR 1,742mn (EPS: PKR 3.98), down by 53% YoY.
Topline during 2QFY19 witnessed a jump of 41% YoY to PKR 11.6bn amid 31% YoY jump in total offtake to 1.7mn tons together with higher retention prices.
Gross margins in 2QFY19 were eroded by 13ppts to 19% compared to 32% in 2QFY18 due to augmenting coal prices (+10% YoY), 21% devaluation in the PKR-USD parity and higher depreciation charge on its new line in South.
Finance costs escalated by 7x YoY to PKR 736mn in the quarter under review given higher borrowing in lieu of its recent expansion in South.
DGKC booked a tax credit of PKR 254mn in 2QFY19 vis-à-vis a tax charge of 65% recognized in SPLY.