DGKC_3QFY21 EPS clocked in at PkR4.67 (In-line with expectations), (AKD, Off the Analyst's Desk, April 26, 2021)
AKD, Off the Analyst's Desk
DGKC: 3QFY21 EPS clocked in at PkR4.67 (In-line with expectations)
- DG Khan Cement announced result for 9MFY21 where company posted PAT of PkR2.8bn (EPS: PkR6.50) against loss after tax of PkR1.8bn (LPS: PkR4.22) recorded in 9MFY20. For 3QFY21, PAT clocked in at PkR2.1bn (EPS: PkR4.67), up by 78%QoQ. The result was in-line with our expectations.
- The significant increase in profitability for 3QFY21 is courtesy 2.7x/5.9x YoY/QoQ jump in other income as dividend of PkR15/sh announced by MCB with the results for Dec'20 was booked by DGKC in the current quarter.
- Gross margins for the quarter stood at 23%, in-line with our expectations of 22% while increasing by 22/2ppts against 3QFY20/2QFY21 as prices improved post conclusion of expansion cycle while demand has also picked up.
- The aforementioned mentioned improvement in prices and dispatches also led to topline increasing by 12%YoY for the quarter however declined by 4%QoQ as overall industry dispatches declined by 2%QoQ.
- Impact of decline in interest rates has finally set in with company's finance cost witnessing a decline of 42%YoY and 8%QoQ while tax rate for the quarter stood at 23% against 16% witnessed in 2QFY21.
- We have a Buy call on the scrip with our TP of PkR209.7/sh providing an upside of 80.4%.
AKD Research
Co. is engaged in the production and sale of Ordinary Portland and Sulphate Resistant Cements.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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