D.g. Khan Cement Co. Ltd. · PSX:DGKC

D.g. Khan Cement — Investor Presentation (2019)

22 slides from D.g. Khan Cement's investor presentation, 2019

  1. Slide 1: Corporate Briefing Session for the Year Ended June 2019

    D.G.KHAN CEMENT COMPANY LIMITED CORPORATE BRIEFING SESSION FOR THE YEAR ENDED JUNE 2019

  2. Slide 2: Group and Company Profile

    GROUP AND COMPANY PROFILE • Founded in 1951, Nishat Group is one of the largest multinational conglomerates of Pakistan • Total Market capitalization as at June 30, 2019 was Rs 297 billion (about USD 1.8 billion). • Employed more than 41,000 employees directly • Total assets exceed Rs 1,800 billion

  3. Slide 3: Nishat Group Companies by Sector

    HOSPITALITY & HOTELS -NISHAT HOTELS AND PROPERTIES LIMITED - NISHAT HOSPITALITY (PVT) LIMITED ENERGY - NISHAT POWER LIMITED -LALPIR POWER LIMITED -PAKGEN POWER LIMITED - NISHAT ENERGY LIMITED LIVESTOCK & DAIRY - NISHAT DAIRY (PVT) LIMITED AVIATION - PAKISTAN AVIATORS & AVIATION (PVT) LIMITED IN NISH

  4. Slide 4: Company Profile

    Company Profile… • Established in 1978, commenced Commercial production in 1986, it is now the third largest cement manufacturer of Pakistan • Blue chip stock • Employed more than 1,800 employees as at June 30, 2019 • Total assets exceed Rs 125 billion as at June 30, 2019 • Company Rating; Long term

  5. Slide 5: DGKCCL Progress over the years

    DGKCCL… Progress over the years Established under the control of State Cement Corporation of 1978 Pakistan Limited Commenced commercial production with clinker capacity of 2,000 1986 TPD at DG Khan site Acquired by Nishat Group under privitization initiated by the 1992 Government Clinker production

  6. Slide 6: Progress over the years… continued

    Progress over the years… continued Addition of another production line with clinker capacity of 3,300 1997 TPD at DG Khan Site Kiln Firing System converted from furnace oil to coal-based 2001 system. Increase in production capacity of existing lines to 6,700 TPD at DG 2005 Khan site New plant with c

  7. Slide 7: Progress over the years… continued

    Progress over the years… continued 2010 Installation of 10.4 MW WHR power plant at DG Khan site 2013 Installation of 8.6 MW WHR power plant at Khairpur site 2016 Installation of 30 MW Coal Fired Power Plant at DG Khan site 2018 Installation of 1.1 MW Solar Power Plant at Hub site

  8. Slide 8: Progress over the years… continued

    Progress over the years… continued New plant with clinker production capacity of 9,000 TPD was 2018 established at Hub site. Total clinker production capacity enhanced to 22,400 TPD 12 MW new Waste Heat Recovery (WHR) power plant at Khairpur 2019 site based on efficient air cooler technology 10 MW W

  9. Slide 9: Production and Power Generation Capacity

    PRODUCTION AND POWER GENERATION CAPACITY DGP KHP HUB Total Clinker production capacity (TPD) 6,700 6,700 9,000 22,400 CFPP (MW) 30 - - 30 WHR Power plant (MW) 10.40 12.00 - 22.40 Gas Fired power plant (MW) 24.60 - - 24.60 Dual Fuel Power plant (MW) - 33.00 - 33 FO based power plant (MW) - - 23.84 23

  10. Slide 10: Sales Offices and Plant Locations

    Sales Office Rawalpindi s Nation e E e e Lahore: Head Office illion tor nt Sales Oftice Lahore Sales Office Multan ales Office Dera Ghazi Khan lI Sales Office Kai NISHAT

  11. Slide 11: Strategic, Financial and Operational Developments: Downside

    STRATEGIC, FINANCIAL AND OPERATIONAL DEVELOPMENTS Downside developments: • 7.47% contraction in construction sector in FY 2019 • Price war in the industry due to addition in production lines • Rising inflation and slow local demand • Potential implications of axle load • Export to India halted post

  12. Slide 12: Upside developments

    Upside developments: • Entry in south market to diversify the customer base • Clinker export to contribute towards fixed costs • Strategic production facility near port to increase exports • Production facilities stretched from north to center to south • 10 MW WHR and 30 MW CFPP at Hub site • 12MW W

  13. Slide 13: Financial Year 2019 Under Review: Volumetric Data

    FINANCIAL YEAR 2019 UNDER REVIEW Volumetric Data FY19 FY18 Variance Production: In MT % Clinker 6,380,898 4,413,413 1,967,485 44.6% Cement 5,613,650 4,857,761 755,889 15.6% Sales: Total 5,597,642 4,810,250 787,392 16.4% Local (excluding own consumption) 5,327,410 4,352,185 975,225 22.4% Exports 270,

  14. Slide 14: Extracts of Financial Statements: Balance Sheet

    Extracts of Financial Statements …. 2019 2018 Variance ---Rs in thousands-- % Balance sheet Equity 70,928,415 77,134,421 (6,206,006) -8.0% Fixed Assets 79,980,234 76,493,984 3,486,250 4.6% Capitalisation 7,022,815 46,233,538 (39,210,723) -84.8% Long Term Loan 21,025,324 20,040,471 984,853 4.9% Short

  15. Slide 15: Extracts of Financial Statements: Profit or Loss

    Extracts of Financial Statements …. 2019 2018 Variance ---Rs in thousands-- % Profit or Loss Account Gross Sales 57,952,383 43,407,770 14,544,613 33.5% Sales tax and Excise duty 16,985,427 12,352,419 4,633,008 37.5% Net Sales 40,516,525 30,668,428 9,848,097 32.1% Gross Profit 5,362,439 8,740,221 (3,

  16. Slide 16: Profitability Indicators

    Extracts of Financial Statements …. Profitability Indicators 2019 2018 Variance EBITDA (PKR in thousands) 8,795,010 10,193,594 (1,398,584) -13.7% EBIT (PKR in thousands) 5,294,943 7,889,345 (2,594,402) -32.9% Depreciation (PKR in thousands) 3,500,067 2,304,249 1,195,818 51.9% GP to Sales (%) 13.24 2

  17. Slide 17: Sales utilization comparison with Industry

    Sales utilization comparison with Industry …. Sales Utilization (%) Industry DGKC Total Sales Utilization FY 19 83.73 90.44 120.00 100.00 FY18 95.23 113.96 80.00 FY17 85.88 106.09 60.00 40.00 FY16 85.22 105.56 20.00 FY15 77.60 91.40 - FY 19 FY18 FY17 FY16 FY15 FY14 FY14 76.79 94.20 Industry DGKC

  18. Slide 18: Extracts of Financial Statements Quarter ended September 2019

    Extracts of Financial Statements Quarter ended September 2019 September ended 2019 2018 Variance ---Rs in thousands-- (Unaudited) % Profit or Loss Account Sales 9,069,445 8,185,893 883,552 10.8% COS (9,607,461) (7,148,528) (2,458,933) 34.4% Gross (Loss)/Profit (538,016) 1,037,365 (1,575,381) -151.9%

  19. Slide 19: Sales, GP to Sales, Dividend per Share and Current Assets Charts

    GP to Sales (%) 6,000,000 45.00 40.00 5,000,000 35.00 4,000,000 30.00 25.00 3,000,000 20.00 2,000,000 15.00 10.00 1,000,000 5.00 - - FY 19 FY18 FY17 FY16 FY15 FY14 FY 19 FY18 FY17 FY16 FY15 FY14 Total Cement Sales Local Cement Sales Export Cement Sales Dividend/Share (PKR) 40,000,000 8.00 35,000,000

  20. Slide 20: Dividend Payout, EPS, PE, Current Ratio and Stock Price

    Divident Payout Ratio (%) 25.00 45.00 20.00 40.00 35.00 15.00 30.00 25.00 10.00 20.00 15.00 5.00 10.00 5.00 - FY 19 FY18 FY17 FY16 FY15 FY14 - Fy 19 FY18 FY17 FY16 FY15 FY14 EPS PE Ratio Current Ratio (times) 250.00 6.00 200.00 5.00 150.00 4.00 100.00 3.00 2.00 50.00 1.00 - FY 19 FY18 FY17 FY16 FY15

  21. Slide 21: Corporate Social Responsibility

    CORPORATE SOCIAL RESPONSIBILITY Education and training • Two Schools at DG Khan Site • Internship Program • Contribution towards university • Training • Skill Development Program Medical • Free dispensary for locals (involving consultancy, medicines and regular checkups) • Free ambulance service • C

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