Karachi, February 19, 2021: DGKC has announced its 2QFY21 results where the company has posted unconsolidated Profit of PKR1.15 billion (EPS: PKR2.6) vs. profit of PKR581 million (EPS: PKR1.3) in SPLY. The result is above our expectations, mainly due to higher than anticipated gross margins.
During 2QFY21, revenues decreased by 4 percent, mainly because of 4 percent YoY drop in dispatches. Gross margins increased by 800bps to clocked in at 21.2 percent vs. 13.2 percent in SPLY which can be attributed to better retention prices. Financial charges decreased by 37 percent YoY to clocked in at PKR757 million, attributable to lower interest rates in said qtr.
On consolidated basis, DGKC posted an EPS of PKR2.98 in 2QFY21 vs. EPS of PKR1.14 in SPLY.
Company also decided to evaluate capacity of new cement line ranging between 9,000 tpd to 12,000 tpd.