D.G. Khan Cement Company Limited (DGKC) announced its financial results for the first quarter of the fiscal year 2025, reporting a profit of Rs. 804 million, translating to earnings per share (EPS) of Rs. 1.84. This marks a 22 percent increase compared to the Rs. 661 million profit (EPS: Rs. 1.51) recorded in the same period last year.

This positive performance comes after the company reported a significant loss of Rs. 1,692 million (loss per share: Rs. 3.86) in the fourth quarter of FY24.

Despite the profit growth, DGKC’s topline for 1QFY25 fell by 7 percent year-on-year, reaching Rs. 15,301 million, down from Rs. 16,517 million in the same period last year. This decline is attributed to a 22 percent year-on-year drop in domestic dispatches, which totaled 746,000 tons, according to Arif Habib Limited.

The company’s gross margins for 1QFY25 showed a slight improvement, increasing by 12 basis points to 19.6 percent. However, selling and distribution expenses surged by 61 percent year-on-year, reaching Rs. 818 million, up from Rs. 509 million in the same period last year. This increase was driven by elevated freight charges due to higher export sales.

Other income for the quarter rose by 26 percent year-on-year to Rs. 1,038 million, primarily due to higher dividend income. Meanwhile, finance costs decreased by 24 percent year-on-year, totaling Rs. 1,589 million compared to Rs. 2,087 million, largely due to a reduction in interest rates.

The company maintained an effective tax rate of 39 percent in 1QFY25, consistent with the rate incurred in 1QFY24.

Overall, DGKC’s financial performance in the first quarter of FY25 reflects a recovery from previous losses, driven by improved margins and reduced finance costs, despite challenges in domestic sales.