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DG Khan Cement records Rs 525m net profit

Staff Report

KARACHI: DG Khan Cement has recorded Rs 525 million net profit in the year ended June 30, 2009, overcoming a loss of Rs 53 million in the last year.

The earnings per share also rose by Rs 1.96 during the year under review against Rs 0.21 loss per share in the previous year, a notice to Karachi Stock Exchange (KSE) stated on Thursday.

The aimprovement in profitability is attributed to considerable jump in retention levels (up 59 percent) during the year. The net sales of the company jumped to Rs 18 billion in the said year, compared to Rs 12 billion in the previous year. Whereas, the cost of sales also showed an increase in the same proportion of Rs 12.358 billion over Rs 10.530 billion in the previous year.

The selling and distributing expenses moved to Rs 1.871 billion against Rs 561 million in the last year. Company also incurred impairment loss of Rs 257 million on its investment in the equities.

The cumulative sales of the company remained 10 percent lower at 3.96 million tonnes during FY09 as against 4.40 million tonnes previously. On segregated basis, the company dispatched 2.38 million tonnes of cement in the local market, which is 35 percent lower when compared to 3.64 million tonnes of FY08.

Resultantly, the company lost almost 4pps in its market share at 12 percent versus 16 percent in the last year. On export front, the company sold 1.58 million tonnes of cement in FY09 as compared to 0.75million tonnes previously thus, recording massive 109 percent jump against the industry growth of 47 percent. DGKC has also enhanced its export contribution in the industry by 400bps to 14 percent from 10 percent, previously.

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