OXFORD BROOKES

UNIVERSITY
RESEARCH AND ANALYSIS
PROJECT
An Analysis and evaluation of business and financial
performance of By: XXXXXX XXXXX
Presented

“DG Khan Cement Limited”

ACCA ID: XXXXXXX
 AGENDA OF MEETING
• Industry Overview
• Company Overview
• Competitor’s Overview
• Lucky Cement’s (LCL) financial Performance
• LCL’s Strategic Decision Making Position
• LCL’s Competitive Position
• Conclusion and Recommendations
• Questioning Session
 INDUSTRY OVERVIEW

Cement Industry DG Khan Cement Lucky Cement

• 24 Cement • Nishat Group • Yunas Brothers
manufacturers. • Second largest Group
• 44.22m tons manufacturer of • Largest
capacity of cement. manufacturer of
production cement industry
Financial Ratio Analysis
 PRODUCTION AND SALES
ANALYSIS
Production and Sales Analysis for DGKC and LCL

7,000,000

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

-
Production in Tons Local Sales in Tons Export Sales in Tons

2012 DGKC 2013 DGKC 2014 DGKC 2012 LCL 2013 LCL 2014 LCL
 PROFITABILITY ANALYSIS
Profitability Analysis for DGKC and LCL

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
Gross Profit Margin Net Profit Margin Return on Capital Employed

2012 DGKC 2013 DGKC 2014 DGKC 2012 LCL 2013 LCL 2014 LCL
 LIQUIDITY ANALYSIS
Liquidity Analysis for DGKC and LCL

6.00

5.00

4.00

3.00

2.00

1.00

-
Current Ratio Quick Ratio

2012 DGKC 2013 DGKC 2014 DGKC 2012 LCL 2013 LCL 2014 LCL
 SOLVENCY ANALYSIS
Solvency Analysis for DGKC and LCL

450.00

400.00

350.00

300.00

250.00

200.00

150.00

100.00

50.00

-
Gearing Interest Cover

2012 DGKC 2013 DGKC 2014 DGKC 2012 LCL 2013 LCL 2014 LCL
 EFFICIENCY ANALYSIS
Efficiency Analysis for DGKC and LCL

70

60

50

40

30

20

10

-
Debtor Collection Period Invetory Holding Period Creditors Payment Period

2012 DGKC 2013 DGKC 2014 DGKC 2012 LCL 2013 LCL 2014 LCL
 INVESTOR ANALYSIS
Investor Analysis for DGKC and LCL

9.000

8.000

7.000

6.000

5.000

4.000

3.000

2.000

1.000

-
Earning/(Loss) per Share Dividenr per Share

2012 DGKC 2013 DGKC 2014 DGKC 2012 LCL 2013 LCL 2014 LCL
SWOT Analysis
 Weaknesses: Opportunities:
• Not fully utilizing • Increase in local
the production demand.
capacity • Expected shortage
• Declining exports. in Qatar
• Expo 2020 in UAE

Strengths: Threats:
• Strong Group •Security threats
• Expansion Plans •Political instability
• Reapyment of •Electrcity crisis
Loan
SWO •Cheaper Iranian
cement

T
Porter’s Five Forces
Analysis
Bargaining Bargaining
Threat of New
Power of Power of Substitute Rivalry
Entry
Supplier Customer

Low
Low Low Threat
Bargaining
Bargaining Price war
Power for No Substitute High number
Power of Local expected
Domestic of Barriers
Suppliers
Customers

High High
Bargaining Bargaining
No different
Power of Power for
prices
International International
Suppliers Customers
Conclusion Recommendations

Analysis of Focus on
Business decreasing
Performance export sales

Strategic Focus on
Position in MENA cement
indsutry demand

Focus on Pak-
Future
China
Perspective
Contract

Hedging to
Analysis of
avoid
financial
exchange
performance
gain/loss.
Any Question
Thank You