KARACHI, Feb 11: D.G. Khan Cement, the second largest cement company in the country, unveiled financial figures for the first half of financial year 2013 (1H13) on Monday; Lucky Cement having already announced its financial results earlier.

DG Khan reported a mammoth growth of 127 per cent in profit after tax (PAT) to Rs2.913 billion, represented earning per share (eps) at Rs6.65, from Rs1.279 billion and eps at Rs2.92 in the previous year's comparable half.

The earnings, however, were thought to be lower than consensus expectations and the market price of the stock shed 52 paisa to close at Rs55.49 on a volume of 70 million shares in trading on Monday.

The Board of directors skipped an interim dividend, which was in accordance with the previous years’ trends.

The slight downside in earnings over forecasts was widely believed to be due to higher than anticipated effective tax rate in second quarter 2013 (2QFY13).

Analysts said that higher PAT in the latest half year, primarily stem from gross margins, which edged higher to 39 per cent, amid high cement prices particularly on the domestic level and depressed coal prices; the latter showing average decline of 21.7 per cent year-on-year to $87 per ton.

Sales grew 11 per cent to Rs11.8 billion for July-Dec 2012 (1HFY13), from Rs10.7 billion. Local sales rose by 6 percent YoY to 1.367 million tons during 1HFY13.

The demand growth in the North and aggressive PSDP utilisation assisted rise in local sales. That, coupled with average 8 per cent hike in cement prices in the North to Rs440 per bag pushed net sales up by substantial margin.

Administrative expenses rose to Rs188 million, from Rs120 million while selling distribution expenses decreased to Rs0.888 million from Rs1.2 billion. Other income improved to Rs773 million from Rs650 million. The growth attributable to dividends received from sister concerns, Nishat Mills Limited at Rs3.50 per share and Nishat Chunian Mills Limited Rs1.50 per share. Financial charges declined 35 per cent to Rs577 million from Rs886 million, which helped lift bottom-line.