AHCML Research has published its report on D.G. Khan Cement Company Limited (DGKC) for the quarter ending 4QFY25. The company is expected to report a Profit After Tax (PAT) of PKR 2,510 million, translating to an Earnings Per Share (EPS) of PKR 5.73 for this period—an impressive 248% increase year-over-year (YoY).

Sales revenue for the quarter is expected to reach PKR 18,447 million, marking a 9% YoY increase, driven by higher local and export dispatches. Gross margins are estimated at 29.56%, representing a 3.51 percentage point increase quarter-over-quarter (QoQ).

Coal prices averaged USD 89.57 per ton in 4QFY25, reflecting a 6.3% QoQ decrease from USD 95.56 per ton in 3QFY25 and a 16.8% YoY decline from USD 107. In contrast, the average price of a cement bag rose by 11.62% YoY to PKR 1,412 in June 2025, up from PKR 1,265 in June 2024.

The average discount rate stood at 11% in 4QFY25, a significant drop from 20.5% in 4QFY24 and 12% in 3QFY25. This represents a sharp decline of 9.5 percentage points YoY and one percentage point QoQ. Consequently, finance costs are expected to decrease by 61% YoY, further supported by reduced long-term borrowing from financial institutions.

We estimate a Dividend Per Share (DPS) of PKR 2.5 for this period, reflecting the company’s improved profitability.

Local dispatches totaled 797,560 tons in 4QFY25, representing a 4.71% YoY decline compared to 837,059 tons in 4QFY24. On a quarterly basis, dispatches also decreased by 11.05%, down from 896,662 tons in 3QFY25.

Export dispatches increased by 5.43% YoY to 477,976 tons in 4QFY25, compared to 453,349 tons in the same period last year. On a QoQ basis, export volumes also grew by 6.27%, rising from 449,768 tons in 3QFY25.