DG KHAN CEMENT

FIVE YEAR FINANCIAL ANAYLSIS

Presented by:
Noman Ejaz
Zahid Suleman
M. Qasim Abbasi
Naeem Ahmed Bhatti

18977
19767
18658
17104
Presented to :
Sir Tabish Ali

12/18/2014

DG Khan Cement

Particulars
2010

2011

Rupees in Thousand
2012

2,261,163

2,680,338

5,723,250

8,090,737

8,460,256

5,089,507
26,519,220
31,608,727

4,880,579
30,217,283
35,097,862

4,629,083
32,899,525
37,528,608

2,899,187
47,956,798
50,855,985

1,321,009
61,516,535
62,837,544

233,022

170,961

4,108,118

5,502,169

5,965,498

26,519,220

30,217,283

32,899,525

47,956,798

61,516,535

Sales

16,275,354

18,577,198

22,949,853

24,915,924

26,542,509

Gross Profit

2,705,360

4,384,969

7,506,755

9,326,007

9,257,568

Interest Expense

1,902,760

2,079,146

1,670,784

994,879

608,859

16,417,492

18,325,209

18,265,583

25,789,989

32,068,626

13,786,189
1,036,876
15,380,616

12,687,375
862,141
17,463,068

11,205,943
954,645
17,310,938

9,307,593
1,661,721
24,128,268

5,940,563
1,348,742
30,719,884

15,443,098

15,589,917

17,284,941

Profit Before Interest & Taxation

Capital Employed
Long Term Debts
Shareholders Equity
Capital Employed

Profit After Tax Less preferred Dividend

Shareholders Equity

Current Assets
Current Liabilities
Stock
Quick Assets
12/18/2014

Cost of Sales

DG Khan Cement

13,569,994

14,192,229

2013

2014

PROFITABALITY RATIOS
DG KHAN CEMENT

12/18/2014

DG Khan Cement

Formula

ROCE= PBIT/ Capital Employed

Year

12/18/2014

Rupees in Thousand

ROCE

2010

2,2611,63
5,089,507+26,519,220

7.15%

2011

2,680,338
4,880,579+30,217,283

7.64%

2012

5,723,250
4,629,083+32,899,525

15.25%

2013

8,090,737
2,899,187+47,956,798

15.91%

2014

8,460,256
1,321,009+61,516,535

13.46%

DG Khan Cement

Return on Capital Employed

18.00%
15.91%

16.00%

15.25%

13.46%

14.00%
12.00%
10.00%
8.00%

7.64%

7.15%

6.00%
4.00%
2.00%
0.00%
ROCE
2010

12/18/2014

2011

2012

DG Khan Cement

2013

2014

Interpretation
2010
Sales revenue declined by nearly 10% despite 28% increase in domestic
sales growth due to sluggish cement prices & price war in the cement
industry.
Cost of sales increases in terms of increase in coal prices, Pak Rupee
depreciated, fuel cost increases, gas prices increases & cost of packing
material also significantly increases.
Waste Heat recovery project has started generating electricity which will
start from june.2010,and will help to reduce fuel cost, electricity cost,
dependence on WAPDA.

2011
Sales revenue increases by 14% due to increase in cement prices in
domestic market, although domestic demand falls till july,2011 due to
heavy floods in the country.
12/18/2014

DG Khan Cement

Interpretation
2012

Sales increase by 19.05 % as compare to last year and Company took benefits
with the Waste Heat Recovery System to reduce cost of sales to some extent
but yet company bear cost of Dollar/PKR parity and Fuel and energy cost.
Sales increase due to better prices in local and international market and
devaluation of Pak Rupee against US Dollar.
Company also repay its long term finance during the year of 251 million which
reduces companys finance cost.

2013
Sales increase by 9% and COGS about 1% stable and favorable local
prices.
Cost of Sales to Sales ratio reduced from 67% to 62 % due to use of
alternate fuels, electricity generation through waste heat recovery and
reduced coal prices which overshadowed the inflationary impact of other
materials.
During the year company generated about 61M KWH from waste heat
recovery.
12/18/2014

DG Khan Cement

Interpretation
2014
Sales increase by 6.53% and COGS about 10.87% which reduced the GP
by 0.73 %.
Exports sales dropped by about 12% while local sales increased by more
than 15% in gross value terms.
COGS is increased contributed by doubling the royalty rates, increase in
packaging cost, 14% increase in depreciation due to capitalization of RDF
project in Lahore, Multan. WAPDA and GAS tariff increased as well
during the year.
Finance cost dropped by about 39% owing to less utilization of banking
facilities due to better cash flows

12/18/2014

DG Khan Cement

Formula
Gross Profit Percentage= Net Sales/ Gross Profit
Year

12/18/2014

Calculations
Rupees in Thousand

Gross Profit Percentage

2010

2,705,360
16,275,354

16.62%

2011

4,384,969
18,577,198

23.60%

2012

7,506,755
22,949,853

32.71%

2013

9,326,007
24,915,924

37.43%

2014

9,257,5681
26,542,509

34.88%

DG Khan Cement

Gross Profit Percentage

40.00%

37.43%
34.88%

35.00%

32.71%

30.00%

25.00%

23.60%

20.00%
16.62%
15.00%

10.00%

5.00%

0.00%
Gross Profit Percentage
2010

12/18/2014

2011

2012

DG Khan Cement

2013

2014

10

Interpretation
2012
Sales increase by 19.05 % as compare to last year and Company
took benefits with the Waste Heat Recovery System to reduce cost
of sales to some extent but yet company bear cost of Dollar/PKR
parity and Fuel and energy cost.
Sales increase due to better prices in local and international market
and devaluation of Pak Rupee against US Dollar.
Company also repay its long term finance during the year of 251
million which reduces companys finance cost.

2013
Sales revenue increases by 14% due to increase in cement prices in
domestic market, although domestic demand falls till july,2011 due
to heavy floods in the country.

12/18/2014

DG Khan Cement

11

Interpretation
2014
Sales increase by 6.53% and COGS about 10.87%
which reduced the GP by 0.73 %.
Exports sales dropped by about 12% while local sales
increased by more than 15% in gross value terms.
COGS is increased contributed by doubling the royalty
rates, increase in packaging cost, 14% increase in
depreciation due to capitalization of RDF project in
Lahore, Multan. WAPDA and GAS tariff increased as
well during the year.
Finance cost dropped by about 39% owing to less
utilization of banking facilities due to better cash flows
12/18/2014

DG Khan Cement

12

Formula

Net Profit %= Net Profit/ Net Sales

Year

12/18/2014

Calculations
Rupees in Thousand

Net Profit Percentage

2010

233,022
16,275,354

1.43%

2011

170,961
18,577,198

0.92%

2012

4,108,118
22,949,853

17.90%

2013

5,502,169
24,915,924

22.08%

2014

5,965,498
26,542,509

22.48%

DG Khan Cement

13

Net Profit Percentage

25.00%

22.08%

20.00%

22.48%

17.90%

15.00%
10.00%

5.00%
1.43%

0.92%

0.00%

Net Profit Percentage

2010
12/18/2014

2011

2012

DG Khan Cement

2013

2014
14

Interpretation
2012
Sales increase by 19.05 % as compare to last year and Company
took benefits with the Waste Heat Recovery System to reduce cost
of sales to some extent but yet company bear cost of Dollar/PKR
parity and Fuel and energy cost.
Sales increase due to better prices in local and international market
and devaluation of Pak Rupee against US Dollar.
Company also repay its long term finance during the year of 251
million which reduces companys finance cost.

2013
Sales revenue increases by 14% due to increase in cement prices in
domestic market, although domestic demand falls till july,2011 due
to heavy floods in the country.

12/18/2014

DG Khan Cement

15

Interpretation
2014
Sales increase by 6.53% and COGS about 10.87% which reduced the GP
by 0.73 %.
Exports sales dropped by about 12% while local sales increased by more
than 15% in gross value terms.
COGS is increased contributed by doubling the royalty rates, increase in
packaging cost, 14% increase in depreciation due to capitalization of RDF
project in Lahore, Multan. WAPDA and GAS tariff increased as well
during the year.
Finance cost dropped by about 39% owing to less utilization of banking
facilities due to better cash flows
Net profit is increased due to decrease in selling expense because of low
export. Finance cost is decreased due to payment t of long term loans.
Other income is increased by 12.33 %
12/18/2014

DG Khan Cement

16

Capital Structure
DG KHAN CEMENT

12/18/2014

DG Khan Cement

17

Formula
Gearing Ratio= Long Term Debt/ Capital Employed
Year

12/18/2014

Calculations
Rupees in Thousand

Gearing Ratio

2010

5,089,507
5,089,507+26,519,220

16.10%

2011

4,880,579
4,880,579+30,217,283

13.91%

2012

4,629,083
4,629,083+32,899,525

12.33%

2013

2,899,187
2,899,187+47,956,798

5.70%

2014

1,321,009
1,321,009+61,516,535

2.10%

DG Khan Cement

18

Gearing Ratio
18.00%
16.00%

16.10%
13.91%

14.00%

12.33%

12.00%
10.00%

8.00%
5.70%

6.00%
4.00%

2.10%

2.00%
0.00%

Gearing Ratio
2010
12/18/2014

2011

2012

DG Khan Cement

2013

2014
19

Interpretation
2010-2011
The Long term finance reduced by 4.5% in year 2011 as result
of increase in profitability which results increase in reserves &
accumulated profits, & also increase Issued, subscribed and
paid up capital
2011-2012
The Long term finance reduced by 20 % in year 2012 as result
of increase in profitability & also increase Issued, subscribed
and paid up capital in 2012.
2012-2013
The Long term finance reduced by 33 % in year 2013 as result
of increase in profitability which results increase in reserves &
accumulated profits company.
12/18/2014

DG Khan Cement

20

Formula
Interest Cover= PBIT/ Interest Expense
Year

12/18/2014

Calculations
Rupees in Thousand

Interest Cover

2010

2,261,163
1.902,760

1.19

2011

2,680,338
2.079,146

1.29

2012

5,723,250
1.670,784

3.43

2013

8,090,737
994.879

8.13

2014

8,460,256
608,859

13.90

DG Khan Cement

21

Interest Cover
16
13.9

14
12
10

8.13

6
3.43

4
2

1.29

1.19

Interest Cover
2010
12/18/2014

2011

2012

DG Khan Cement

2013

2014
22

Interpretation
2010
Sales revenue declined by nearly 10% & Cost
of sales increases in terms of increase in coal
prices, Pak Rupee depreciated, fuel cost
increases, gas prices increases & cost of
packing material also significantly increases.
Long term Borrowing increased by 14.05%.
2011
Sales revenue increases by 14% & decrease in
long term finance by 4.5% in 2011.
12/18/2014

DG Khan Cement

23

Interpretation
2012
Sales increase by 19.05 % as compare to last year.
Sales increase due to better prices in local and international market
and devaluation of Pak Rupee against US Dollar.
Company also repay its long term finance during the year of 251
million which reduces companys finance cost.

2013
Sales increase by 9% and COGS about 1% stable and
favorable local prices.
Cost of Sales to Sales ratio reduced from 67% to 62 % due
to use of alternate fuels, electricity generation through waste
heat recovery and reduced coal prices which overshadowed
the inflationary impact of other materials.
Long term finance reduced by 60% as compare to last year.
12/18/2014

DG Khan Cement

24

Interpretation
2014
Sales increase by 6.53% and COGS about
10.87% which reduced the GP by 0.73 %.
Exports sales dropped by about 12% while
local sales increased by more than 15% in
gross value terms.
Long term finance decreased by 119 % as
compare to last year.

12/18/2014

DG Khan Cement

25

Liquidity Ratio
DG KHAN CEMENT

12/18/2014

DG Khan Cement

26

Formula
Current Ratio= Current Assets/ Current Liabilities
Year

12/18/2014

Calculations
Rupees in Thousand

Current Ratio

2010

16,417,492
13,786,189

1.19

2011

18,325,209
12,687,375

1.44

2012

182,655,83
11,205,943

1.63

2013

25,789,989
9,307,593

2.77

2014

32,068,626
5,940,563

5.40

DG Khan Cement

27

Current Ratio
6.00

5.40

5.00

4.00
2.77

3.00
2.00
1.19

1.63

1.44

1.00
0.00

Current Ratio
2010
12/18/2014

2011

2012

DG Khan Cement

2013

2014
28

Interpretation
2010-2014
As clearly seen from the financial statement
that there is declining trend in current
liabilities and there is increase current assets
due to continuous increases in sales and
profitability of the D G Khan cement. Which
shows companys working capital is in control
and is positive.
12/18/2014

DG Khan Cement

29

Formula
Quick Ratio= Current Assets-Stock/ Current Liabilities
Year

12/18/2014

Calculations
Rupees in Thousand

Quick Ratio

2010

15,380,616
13,786,189

1.12

2011

17,463,068
12,687,375

1.38

2012

17,310,938
11,205,943

1.54

2013

24,128,268
9,307,593

2.59

2014

30,719,884
5,940,563

5.17

DG Khan Cement

30

Quick Ratio
6.00
5.17
5.00

4.00
3.00

2.59

2.00
1.12

1.54

1.38

1.00
0.00

Quick Ratio
2010
12/18/2014

2011

2012

DG Khan Cement

2013

2014
31

Interpretation
2010-2014
This is clear from the financial performance of
companys that company quick assets are in
increasing trend in terms of current liabilities
are in decreasing trend.
Where as in 2013 stock in trade decline by
42.5% and in 2014 stock in trade decline by
23.2%.
12/18/2014

DG Khan Cement

32

Efficiency Ratio
DG KHAN CEMENT

12/18/2014

DG Khan Cement

33

Formula
Inventory Turnover Days= (Total closing stock \ COGS )
X 365
Year

12/18/2014

Calculations
Rupees in Thousand

2010

1,036,876
13,569,994

x 365

2011

862,141
14,192,229

x 365

2012

954,645
15,443,098

x 365

2013

1,661,721
15,589,917

x 365

2014

1,348,742
17,284,941

x 365

DG Khan Cement

Inventory Turnover Days

27.89

22.17
22.56
38.91
28.48

34

Inventory Turnover Days

45.00
38.91

40.00
35.00
30.00

28.48

27.89

25.00

22.56

22.17

20.00
15.00
10.00
5.00
0.00
Inventory Turnover Days
2010

12/18/2014

2011

2012

DG Khan Cement

2013

2014

35

Interpretation
2012
Increase in sales is attributed to better prices in local and international market
and devaluation of Pak Rupee against US Dollar.

12/18/2014

DG Khan Cement

36

Formula
Debtors Turnover Days= (Total closing Debtors \ Net
credit Sales ) X 365
Year

12/18/2014

Calculations
Rupees in Thousand

2010

303,949
16,275,354

x 365

2011

459,300
18,577,198

x 365

2012

317,970
22,949,853

x 365

2013

273,535
24,915,924

x 365

2014

168,769
26,542,509

x 365

DG Khan Cement

Debtors Turnover Days

6.81

9.02
5.05
4.0
2.32

37

Debtors Turnover Days

45.00
4.0

40.00
35.00

30.00

2.32

6.81

25.00

5.05

9.02

20.00
15.00
10.00
5.00
0.00

Inventory Turnover Days

2010
12/18/2014

2011

2012

DG Khan Cement

2013

2014
38

Interpretation
2012
Debtors turnover in decreased due to effective cash inflow management in place
to project inflow

2013
Debtors turnover in decreased due to effective cash flow from
sales
2014
Debtors turnover in decreased due to effective
cash flow from sales

12/18/2014

DG Khan Cement

39

Formula
Creditors Turnover Days= (Total closing Creditors \ Net
credit Purchases ) X 365
Year

12/18/2014

Calculations
Rupees in Thousand

2010

376,307
13,569,994

x 365

2011

204,423
14,192,229

x 365

2012

647,238
15,443,098

x 365

2013

316,685
15,589,917

x 365

2014

393,771
17,284,941

x 365

DG Khan Cement

Creditors Turnover Days

10.12

5.25
15.29
7.41
8.31

40

Creditors Turnover Days

45.00
7.41

40.00
35.00

30.00

8.31

10.12

25.00

15.29

5.25

20.00
15.00
10.00
5.00
0.00

Inventory Turnover Days

2010
12/18/2014

2011

2012

DG Khan Cement

2013

2014
41

Interpretation
2011
Creditors turnover in days in decrease due to
payment of supplier
2012
Creditors turnover in days in increased due to
delay in payment to supplier and purchases
increased and short term loans.

12/18/2014

DG Khan Cement

42

Formula
Cash Conversion Cycle= Inventory turnover + Debtors
turnover - Creditors turnover
Year
2010

2011
2012
2013
2014

12/18/2014

Calculations
Rupees in Thousand
27.89 + 6.81 10.12
22.17 + 9.02 5.25
22.56 + 5.05 15.29
38.91 + 4.0 7.41
28.48 + 2.32 8.31

DG Khan Cement

CCC
Days
24.58

25.94
12.32
35.5
22.49

43

Interpretation
2011
CCC is increased due to increase in Inventory and
less inflow from debtors.
2012
CCC is decreased as compare to previous year
due to effective inflow from debtors and delay in
payment to supplier.
2013
CCC is increased due to increased in inventory as
compare to previous year
12/18/2014

DG Khan Cement

44

Formula
Assets Turnover= Sales / Capital
employed
Year

12/18/2014

Rupees in Thousand

Assets Turnover
Days

2010

16,275,354
5,089,507+26,519,220

0.51

2011

18,577,198
4,880,579+30,217,283

0.52

2012

22,949,853
4,629,083+32,899,525

0.61

2013

24,915,924
2,899,187+47,956,798

0.48

2014

26,542,509
1,321,009+61,516,535

0.42

DG Khan Cement

45

Interpretation
2011
Assets turnover is Increase due to increase in
sales and decrease in long term debts
2012
Assets turnover is Increase due to increase in
sales and further decrease in long term debts
compare to last year

12/18/2014

DG Khan Cement

46

Thank you for your patience!!!

12/18/2014

DG Khan Cement

47