D.G. Khan Cement Posts Third-Quarter Loss on Higher Taxes; Shares Decline
D.G. Khan Cement Ltd., Pakistan’s second-biggest producer of the building material, posted a net loss in the third-quarter after it paid more in taxes.
The net loss was 47.4 million rupees ($564,858), or 0.21 rupee a share, in the three months ended March 31, compared with a net profit of 178.5 million rupees, or 0.59 rupees, a year earlier, the Lahore-based company said in a statement to the Karachi Stock Exchange today. Sales fell to 4.04 billion rupees from 4.62 billion rupees.
Cement companies pay taxes on annual estimates sales and the company’s yearly revenue is expected to be higher, said Usman Zahid, research analyst at AKD Securities Ltd., in Karachi, who has a “buy” recommendation for the stock.
D.G. Khan paid 67.4 million rupees in taxes in the third- quarter compared with a tax reversal of 29 million rupees a year ago, according to the statement.
D.G. Khan Cement’s shares, which have fallen 4 percent this year, fell 4.4 percent, as of 2:27 p.m. local time on the Karachi Stock Exchange.
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