Karachi: D.G. Khan Cement Company Ltd. (DGKC) reported a significant rise in its earnings for the second quarter of the fiscal year 2026, with a 36% year-over-year increase. The company announced earnings of PkR3.7 billion, or PkR8.4 per share, compared to PkR2.7 billion, or PkR6.2 per share, in the same period last year. This boost in earnings is attributed to improved gross margins, despite a decline in revenue.

According to AKD Securities Limited, the financial results revealed that while DGKC's revenue experienced a 4% year-over-year decline to PkR20.8 billion, the gross margins surged to an eight-year high of 31.8%, up from 25.1% in the same period last year. The revenue drop was primarily due to an 8% decrease in total offtakes and a 2% decline in average retention prices. However, higher local sales, increased export and south retention prices, and lower international coal prices contributed to the improved margins.

Operating expenses decreased by 1% year-over-year to PkR1.5 billion, influenced by a 23% decline in export offtakes. The reduction in expenses was partially countered by higher fuel prices, which added pressure on the company's operational costs. DGKC's better-than-expected earnings performance was also attributed to higher retention prices and lower costs of goods sold, reflecting the company's strategic adjustments amid challenging market conditions.

The post D.G. Khan Cement Reports 36% YoY Earnings Increase Amid Decline in Revenue appeared first on Pakistan Business News.