KARACHI: D.G. Khan Cement (DGKC) posted profit after tax (PAT) at Rs5.965 billion which translated into earning per share (eps) at Rs13.62.

The earnings represented improvement of 8 per cent over the PAT at Rs5.502bn and eps at Rs12.56 the previous year.

The results were accompanied by final cash dividend of Rs3.50 per share, which was higher than Rs3 per share paid last year.

The DG results were thought to be better than consensus market expectations, which gave fillip to both the share price as well as the stock market.

Cement sector analyst Vahaj Ahmed at Topline Securities commented that although net retention prices in FY14 increased by 8pc, per ton cost of sales increased by 12pc mainly due to rise in electricity charges, resulting in gross margins to decline by 3pps. Moreover, dip in distribution expenses by 17pc improved operating income by 5pc to Rs8.4bn.

Additional support to company’s bottom-line was provided from reduced financial charges and higher other income. Financial charges fell by 39pc to Rs609m while higher dividend income from investments resulted in 12pc rise in other income to Rs1.6bn.

Published in Dawn, September 17th, 2014