IGI Securities Limited - Day Break.

Karachi -- April 24, 2019 (PPI-OT)

Cements - DGKC and MLCF 3QFY19 Results Preview: Earnings down by 51% and 39% YoY

D. G. Khan Cement Company Limited's (DGKC) board meeting is scheduled today, 24th Apr-19 to announce financial result for 3QFY19, wherein we expect the company to post earnings of PKR 602mn (EPS: PKR 1.38), down by 51%YoY.

The decline in DGKC earnings is primarily driven by deteriorated margins led by a) 25%YoY PKR depreciation, b) 20% YoY increase in FED, c) 23%YoY rise in gas tariff, d) impact of incremental depreciation post commencement of DGKC Hub plant; and e) bulging finance cost post capitalization of Hub...