KARACHI: DG Khan Cement Limited (DGKC) announced its 3QFY19 ended March 31, 2019 financial results wherein the company reported profit after tax of PKR 883 million translating into earning per share (EPS) of PKR 2.02 as against profit of PKR 1.236 billion and EPS of PKR 2.82 reported in the same quarter last year, depicting a notable fall of 29% YoY.[the_ad id=”32940″]The earnings arrived above market expectations primarily due to tax credit booked by the company during 3QFY19.

Sales revenue of the company arrived at PKR 10.608 billion in 3QFY19 versus PKR 7.612 million in the same quarter last year, up 39% YoY. The rise in top-line is mainly due to increase in dispatches (29%YoY) during the quarter.

As expected, gross margins of DGKC declined 8ppsYoY to 17% in 3QFY19. The contraction in margins is primarily due to higher cost of production in the wake of PKR devaluation. In absolute terms, gross profitability clocked in at PKR 1.781 billion in 3QFY19, down 7%YoY.

Moreover, finance cost surged 627% YoY to PKR 912 million in 3QFY19. However, company booked a tax credit of PKR 71 million during the quarter which restricted decline in DGKC’s profitability.