DG Khan Cement Company Limited (DGKC) is scheduled to announce its 1QFY22 earnings on Monday (25th Oct’21), whereby we expect the company to post a PAT of PKR 677mn (EPS: PKR 1.55) against a loss in same period of last year of PKR 351mn (LPS: PKR 0.80) and PAT of PKR 873mn (EPS: PKR 1.99) in 4QFY21.

While topline is set to undergo a decline of 18% YoY amid 46% dip in offtake to 1,035k tons which offset the impact of higher retention prices. Albeit, margins are expected at 14.3% vs. 9.6% last year on the back of massive improvement in retention prices and PKR appreciation, which will counterbalance the jump in importer coal prices as well as higher freight and packaging costs.

On a QoQ basis, margins are set to shrink (4QFY21: 17.6%) given 31% dip in revenue (44% decline in offtake), higher coal prices and PKR depreciation. While other income will go up by 9x YoY to PKR 641mn, as banks (holding in MCB) did not pay dividend in same quarter last year.

Courtesy – AHL Research