D.G. Khan Cement Company Ltd. (DGKC) announced its 2QFY26 financial results, reporting earnings of PkR3.7bn (EPS: PkR8.4), compared to PkR2.7bn (EPS: PkR6.2) in SPLY, up 36%YoY. Earnings came above our expectations, mainly due to higher-than-expected retention prices and lower COGS.

Revenue declined by 4% YoY to PkR20.8bn, compared to PkR21.7bn in SPLY, due to an 8% YoY drop in total offtakes, along with a 2% YoY decline in average. retention prices.

Gross margins improved to an 8-year high of 31.8% from 25.1% in SPLY, mainly due to i) a higher proportion of local sales in sales mix, ii) higher export and south retention prices, and iii) a decline in international coal prices.

Operating expenses declined by 1%YoY to PkR1.5bn, mainly due to 23%YoY decline in export offtakes, though higher fuel prices partially offset the impact.

Full Report
https://research.akdsl.com/639074540688882239.pdf

Courtesy – AKD Research