DG Khan Cement earns Rs2.24 billion Q3 profit

KARACHI: Nishat Group’s DG Khan Cement has announced a net profit of Rs2.24 billion translating into earning per share (EPS) of Rs5.11 for the quarter ended March 31, 2021, compared with the loss of Rs1.07 billion in the same period last year.

The company did not announce any payout along with the corporate results.

For the nine month period, net profit clocked in at Rs3.25 billion and EPS of Rs7.42 against loss of Rs2.01 billion in the same period last year.

Sales revenues during 9MFY21 stood at Rs35.37 billion, up 6.5 percent from Rs33.217 billion in 9MFY20.

“Sales, in value terms, registered growth primarily due to stable local cement prices amid soaring cement demand. Gross profit improved despite low clinker production, largely attributable to stable input costs,” the company noted.

However, there was some pressure on costs relating to rising coal prices in Q3 and general inflation that were curtailed through effective management and operational efficiency.

Selling expenses decreased due to decrease in clinker export sale resulting in lower freight and handling charges.

Other income increase was associated to higher rate of dividend from MCB Bank in the current year as compared to last year.

Finance cost declined 41.19 percent to Rs2.379 billion due to low interest rate regime.

FFBL posts Rs1.22bln profit in first quarter

Fauji Fertilizer bin Qasim Limited (FFBL) has announced a net profit of Rs1.22 billion translating into EPS of Rs0.87 for the quarter ended March 31, 2021 compared with the loss of Rs2.9 billion in the corresponding period last year.

The company did not announce any payout along with the corporate results.

“The result is below our expectations due to lower than expected margins and unwinding of GIDC liability during the quarter,” Muhammad Shahroz at Insight Securities said.

FFBL’s sales revenues for the quarter under review clocked in at Rs17.45 billion, up 35.5 percent from Rs12.87 billion recorded in the same period last year.

“Revenues increased mainly due to improved pricing and rise in DAP offtakes which is up by 11 percent. Gross margins for the quarter clocked in at 19 percent amid strong DAP primary margins,” Shahroz added.

Finance cost declined 54.2 percent to Rs1.29 billion during the period under review from Rs2.82 billion last year due to low interest rate regime.

Other income increased due to higher dividend income from Askari Bank Limited (AKBL) and possibly from power subsidiaries. Company has also expensed out loss of Rs345 million on account of unwinding of GIDC liability.

Moreover, the board of FFBL has passed a resolution approving the amalgamation of FFBL Foods Limited with and into FFBL. The scheme is subject to certain regulatory and shareholders’ approval.