Dg Cement Annual Report Analysis
ANALYSIS OF ANNUAL REPORT OF DG CEMENT
INTRODUCTION
D.G. Khan Cement Company Limited (DGKCC), a unit of Nishat group, is the largest cement-manufacturing unit in Pakistan with a production capacity of 5,500 tons clinker per day. It has a countrywide distribution network and its products are preferred on projects of national repute both locally and internationally due to the unparallel and consistent quality. It was established under the management control of State Cement Corporation of Pakistan Limited (SCCP) in 1978. DGKCC started its commercial production in April 1986 with 2000 tons per day (TPD) clinker based on dry process technology. Nishat Group acquired DGKCC in 1992 under the privatization initiative of the government. Every since the Nishat Group over took it, a number of plants has been added and the production has been optimized.
VISION
To transform the company into modern and dynamic cement manufacturing company with qualified professionals and fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan.
OVERVIEW OF COMPANIES POSITION
In spite of decline in the cement sales, the net sales revenue ballooned by nearly 45% on account of stable cement prices in the country. Cement price on the export front, however, have shown declining trends due to tough competition from other regional exporters. Thus the company earned a Net Profit of Rs.525.58Million this year as compared to a Net Loss of Rs.53.23Million last year. Where as the total assets of the company decreased from Rs.51, 992.93Million to Rs.42, 723.04Million.
ANALYSIS OF THE INCOME STATEMENT
The Net Sales of the DGKCC increased from Rs.12, 445.99Million to Rs.18, 038.2Million in 2008-2009 as compared to the last fiscal year i.e. 2007-2008. There was a 45% increase in the net sales as the amount of local sales increased by 20% but the major increase was due to the exports which increased by110%. Where as Cost of good sold only increased by 18%
INTRODUCTION
D.G. Khan Cement Company Limited (DGKCC), a unit of Nishat group, is the largest cement-manufacturing unit in Pakistan with a production capacity of 5,500 tons clinker per day. It has a countrywide distribution network and its products are preferred on projects of national repute both locally and internationally due to the unparallel and consistent quality. It was established under the management control of State Cement Corporation of Pakistan Limited (SCCP) in 1978. DGKCC started its commercial production in April 1986 with 2000 tons per day (TPD) clinker based on dry process technology. Nishat Group acquired DGKCC in 1992 under the privatization initiative of the government. Every since the Nishat Group over took it, a number of plants has been added and the production has been optimized.
VISION
To transform the company into modern and dynamic cement manufacturing company with qualified professionals and fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan.
OVERVIEW OF COMPANIES POSITION
In spite of decline in the cement sales, the net sales revenue ballooned by nearly 45% on account of stable cement prices in the country. Cement price on the export front, however, have shown declining trends due to tough competition from other regional exporters. Thus the company earned a Net Profit of Rs.525.58Million this year as compared to a Net Loss of Rs.53.23Million last year. Where as the total assets of the company decreased from Rs.51, 992.93Million to Rs.42, 723.04Million.
ANALYSIS OF THE INCOME STATEMENT
The Net Sales of the DGKCC increased from Rs.12, 445.99Million to Rs.18, 038.2Million in 2008-2009 as compared to the last fiscal year i.e. 2007-2008. There was a 45% increase in the net sales as the amount of local sales increased by 20% but the major increase was due to the exports which increased by110%. Where as Cost of good sold only increased by 18%