IGI Securities Limited – Day Break (13-02-2020)
Karachi, February 13, 2020 (PPI-OT): Cements – DGKC: Losses to continue; 2QFY20E LPS to clock at PKR (3.23), 1HFY20 comes to PKR (6.49)
DGKC’s financial result for 2QFY20 is scheduled on 13th Feb-20, wherein we expect the company to post a net loss of PKR 1.42bn, compared to a net profit of PKR 1.32bn in the same period last year.
Net sales of the Company during 2QFY20E are expected to decline by 4%YoY, largely due to substantially reduced domestic retention prices which unable to cover production costs, are expected to present gross losses for the Company.
Further injury is expected from massive +75%YoY rise in finance costs due to increased borrowings and higher benchmark interest rates.