COMPANY: DG KHAN CEMENT INDUSTRY

D.G. Khan Cement Company Limited, (DGKCC) is amongst largest the cement manufacturers of Pakistan with a
production capacity of 22,400 tons per day (6.72 million tons/annum). DGKCC has four cement plants, two plants
located at Dera Ghazi Khan, one at Khairpur Distt. Chakwal and one in Hub Labella District (Baluchistan). All the
plants are based on the latest Dry Process Technology.

MEASUREMEMT OF INDEPENDENT VARIABLE

FROM 2021-2022
DG KHAN CEMENT INDUSTRY
SR NO YEARS COMPANY SECTOR
1 2021 DG KHAN CEMENT INDUSTRY CEMENT
2 2022 DG KHAN CEMENT INDUSTRY CEMENT

BOARD OF EFFECTIVENESS
YEARS BOARD OF CEO NO. OF NO OF
DIRECTORS DUALITY INDEPENDENT OUTSIDE
DIRECTORS DIRECTORS
2021 7 0 2 3
2022 7 0 2 3

OWNERSHIP INFLUENCE AND STRUCTURE

YEARS INSTITUTIONAL TOP 5 BLOCK
SHAREHOLDING SHAREHOLDINGS 20
2021 43.93% 43.88% 31.40%
2022 43.82% 43.88% 31.40%
 RATIO ANALYSIS
LIQUIDITY/ UNIT 2021 2022
ACTIVITY RATIO
CUREENT RATIO TIMES 0.94 0.93
TOTAL ASSET TURNOVER TIMES 0.34 0.43

INTERPRETATION:
The liabilities have decreased by 0.94 times to 0.93 times. A Good sign of
company as they have increased their Assets and reduced the Liabilities. Sales have doubled and there
is a marginal increase in the Total Assets.

PROFITABILITY RATIO UNIT 2021 2022

GROSS PROFIT % 18.35 18.19
NET PROFIT % 7.9 5.0
RETURN ON TOTAL ASSET % 2.72 2.32
EARNING PER SHARE % 8.96 7.21

INTERPRETATION:
The company's profitability indicators have shown a slight decrease from 2021 to 2022. While gross profit
remained relatively stable, there was a decline in net profit, return on total assets, and earnings per share.
This suggests that the company may be facing challenges in maintaining or improving its bottom-line
efficiency and financial performance over the period mentioned. It would be advisable for stakeholders to
analyze the factors contributing to these changes for a better understanding of the company's financial
health.

DEBT RATIO UNIT 2021 2022

DEBT TO ASEET RATIO TIMES 2.11 2.50
DEBT TO EQUITY RATIO TIMES 0.89 0.94
EQUITY RATIO TIMES 0.52 0.51
INTERPRETATION:
The company's debt to asset ratio increased from 2.11 in 2021 to 2.50 in 2022, indicating a higher
proportion of debt relative to its total assets. The debt-to-equity ratio also rose from 0.89 to 0.94,
suggesting an increased reliance on debt financing compared to equity. Despite these changes, the
equity ratio remained relatively stable at 0.52 in 2021 and 0.51 in 2022.

Overall, the company's solvency position seems to have weakened slightly in 2022 as indicated by the
higher debt ratios. However, a more comprehensive analysis, considering other financial metrics and
industry benchmarks, would be needed for a thorough assessment of the company's financial health.

Horizontal Analysis
OF FINANCIAL STATEMENT
 Vertical Analysis (%)
OF FINANCIAL STATEMENTS

SWOT ANLYSIS
STRENGTH
- Strong brand recognition
- Well diversified fuel mix % & efficient operations

- Strong financial position

- Quality and efficiency of human resources

- Easy access to production resources - Trusted and efficient supply chain

- Geographically diverse & state-of-art production facilities production facilities

- Self-sufficiency in electricity requirement

WEAKNESSES OPPORTUNITIES
- Highly fragmented industry - Future growth potential due to emphasis on construction
- Demand supply gap, overcapacity on industry

- High taxation and duties - Focus on cost optimizing

- High energy cost and inflation - Emerging export markets

- High interest rates - Export opportunities due to fully operational HUB facility

- Tough competition in local market - Falling fuel prices amid corona outbreaks

- Low exports of cement - CPEC led growth opportunities

THREATS
- Overcapacity effecting the margins

- Devaluation of money

- Inconsistent economic policies

- Protectionism

- Covid-19 impact

- Rising cost of logistics

- High cost of financing

- Slashing PSDP funds

- Rise in coal prices

 HAILEY COLLEGE OF COMMERCE
FINANCIAL MANAGEMENT
GROUP NO: 6
GROUP MEMBERS:
• MEERAB AWAIS BSAT-21-008
• SAIRA SALEEM BSAT-21-041
• KINZA AROOJ BSAT-21-040
• QURAT-UL-AIN BSAT-21-027
• FATIMA ASHFAQ BSAT-21-016

SUBMITED TO:
DR. MUHAMMAD USMAN