DG Khan Cement (DGKC) has been striving very hard to maintain its market position in these times of intense competition and has managed to do so by being the second largest producer in the Northern zone.

DG Khan Cement (DGKC) has been striving very hard to maintain its market position in
these times of intense competition and has managed to do so by being the second
largest producer in the Northern zone.
It could be seen from the company’s final accounts that the revenue increased by 14% on
account of sale of cement bag at around Rs400 per 50kg bag in the North. This
consequently resulted in an increase in gross profit of 62% which is 42% higher as
compared to prior year, in margin terms.
The 23% increase in profit from operations was caused by highly reduced operating
expenses which witnessed a decline of 80%. However, this decline was overshadowed by
the 148% hike in selling and distribution cost. Operating income of Rs1.1bn, too,
maintained the PBIT, hence resulting in a 17% increase.
The net profit of Rs0.17bn has been mainly affected by the increased deferred taxation
but the net margin has increased by 1% only due to high sales revenue.
However, the increased selling cost and deferred taxation adversely affected the EPS of
the company, which has deteriorated by 36% to Rs0.45/sh as compared to the prior year.