KARACHI: The country’s second largest cement company, D.G. Khan Cement Limited (DGKC) posted earnings of Rs1,602m (eps: Rs3.66) in 2QFY14 compared to a profit of Rs1,474m (eps: Rs3.37) in 2QFY13, translating into growth of 9%YoY.

“The result was above our expected earnings of Rs1,275m (fully diluted eps: Rs2.91) with the deviation due to higher other income,” analysts at AKD Securities said.

The 2QFY14 revenues registered an increase of 10 per cent YoY to clock in at Rs6,549m while gross margins declined to 34pc during 2QFY14 from 40pc during 2QFY13 due to higher power costs. Financial charges also declined sharply, coming off by 45pc YoY.

The 1HFY14 earnings clocked in at Rs2,669m (eps: Rs6.09), lower by 8pc YoY. Higher electricity and gas tariffs resulted in a decline in gross margins of 5ppts to 34pc even as revenues grew by 5pc YoY during 1HFY14 to Rs12,403m.