Karachi, October 28, 2019: D.G. Khan Cement Company Limited (DGKC) today announced 1QFY20 results, with loss after tax of Rs1.44bn (LPS: Rs3.26), against profit after tax of Rs418 million (EPS: Rs0.95) in 1QFY19.
Net Sales increased by 11 percent YoY, which was due to higher dispatches from Hub plant. Company posted gross loss of Rs538 million which we believe is due to lower retention prices and some impact might have been felt from increase in transportation cost after axle load.
Moreover, finance cost increased by 105 percent YoY due to increase in interest rates and working capital requirements. Note that pre-tax profitability witnessed a loss of Rs1.9 billion in 1QFY20 as normalized taxation would have further pulled loss up to Rs4.33/share for the quarter.
Sequentially, loss after tax increased by 42 percent QoQ, Note that, loss before tax has increased by whopping 361 percent QoQ from loss of Rs0.4 billion in 4QFY19 to loss of Rs1.9 billion.
