Qudsia Bano

DG Khan Cement Company Limited’s (DGCL) revenue increased by 11% to Rs48.04 billion in the first nine months of the ongoing fiscal year 2022-23 from Rs43.30 billion over the same period last year, according the firm’s nine-month financial summary. However, the company's gross profit decreased by 1% to Rs7.74 billion during the period under review from Rs7.81 billion in the same period last year. The company's profit-before-tax also declined by 34% to Rs3.16 billion from Rs4.82 billion in the same period last year, reports WealthPK.

Moreover, the company's net profit for the first nine months of the fiscal year decreased by 42% to Rs2.11 billion from Rs3.62 billion in the same period last year. The decline in the company's profitability is attributed to the increase in energy and fuel costs, as well as a decline in cement demand due to economic slowdown. Despite the challenges faced by the industry, DG Khan Cement Company Limited remains committed to its long-term growth strategy and is continuously exploring new opportunities to enhance its performance.

During the third quarter (January-March) of FY23, the share prices of DGCL witnessed notable volatility. Particularly, in the second week of March 2023, there was a substantial surge in share prices attributed to a corresponding increase in the company's revenues and earnings. This growth was primarily influenced by an adjustment in cement prices. The positive financial performance of DGCL during this period contributed to heightened investor confidence, resulting in a significant upswing in share prices.

Introduction of new technology

DGCL has embraced Oracle ERP Cloud to address environmental challenges arising out of cement production. By replacing its older system with a cloud-based one, the company has reduced reliance on furnace oil and shifted towards alternative fuels. The company views this adoption as essential for enhancing environmental responsibility. The firm’s use of Reduced Derived Fuel (RDF), which is derived from municipal waste, in its newer plants has further minimised the environmental impact of cement manufacturing.

The transition to Oracle ERP Cloud has not only improved sustainability but also reduced costs and provided better communication and collaboration within the company. Customers benefit from improved access to shipment information and on-time deliveries. DGCL’s proactive approach to meet regulatory requirements features implementing advanced environmental control technologies. Overall, through digital innovation, the company is combining economic needs with environmental responsibility, modernising cement manufacturing in the process.

About the company

DG Khan Cement Company is a public company limited by shares incorporated in Pakistan in 1978 under the Companies Act, 1913, which is now replaced by Companies Act, 2017. The company is principally engaged in the production and sale of clinker, ordinary Portland and sulphate resistant cement.

Credit: Independent News Pakistan-WealthPk