Dandot Cement Reports Financial Challenges Amid Significant Losses

Lahore: Dandot Cement Company Limited has reported its financial results for the year ended June 30, 2025, revealing a challenging fiscal year marked by a loss after taxation of PKR 153.14 million. The financial disclosure follows a board meeting held on October 7, 2025, where the company declared no dividends or bonuses for its shareholders.

The financial statement, as presented, highlights the company’s financial position with total equity and liabilities amounting to PKR 14.12 billion. The company’s current liabilities stand at PKR 4.11 billion, showing an increase from the previous year’s PKR 3.23 billion. Additionally, the company acknowledged a revenue reserve accumulated loss of PKR 5.72 billion, reflecting a deepening financial strain compared to the previous fiscal year.

According to information available from the Pakistan Stock Exchange (PSX), the company’s local sales totaled PKR 9.76 billion for the year, with excise duty, sales tax, and commissions accounting for PKR 3.42 billion, resulting in net sales of PKR 6.34 billion. Despite achieving a gross profit of PKR 592.67 million, the company reported a significant loss before taxation of PKR 149.63 million. The finance cost for the year escalated to PKR 652.16 million, further exacerbating the company’s financial difficulties.

The designated market category for Dandot Cement underscores its struggles, with the issued, subscribed, and paid-up share capital at PKR 3.16 billion, bolstered by a share premium reserve of PKR 1.60 billion. However, the revaluation surplus on property, plant, and equipment decreased from PKR 3.20 billion to PKR 3.10 billion over the fiscal year.

The company’s cash flow from operating activities showed a net usage of PKR 98.08 million, despite generating PKR 339.75 million from operations. This was partly offset by increased deposits and accrued liabilities, which rose to PKR 875.95 million from PKR 441.83 million in the previous year. In terms of investing activities, Dandot Cement recorded a net cash outflow of PKR 96.18 million, mainly due to fixed capital expenditure.

The upcoming Annual General Meeting, scheduled for October 28, 2025, will be a pivotal moment for stakeholders, as the company seeks to navigate its financial challenges and strategize for the coming year. Additionally, the closure of the shares transfer books from October 22 to October 28, 2025, indicates a period of consolidation for Dandot Cement as it prepares for future corporate actions.