OBU

1. OXFORD BROOKES
UNIVERSITY
RESEARCH AND ANALYSIS
PROJECT
An Analysis and evaluation of business and financial
performance of
“DG Khan Cement Limited”
Presented By: XXXXXX XXXXX
ACCA ID: XXXXXXX

2. 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

3. INDUSTRY OVERVIEW
Cement Industry
• 24 Cement
manufacturers.
• 44.22m tons
capacity of
production
DG Khan Cement
• Nishat Group
• Second largest
manufacturer of
cement.
Lucky Cement
• Yunas Brothers
Group
• Largest
manufacturer of
cement industry

4. Financial Ratio Analysis

5. PRODUCTION AND SALES
ANALYSIS
Production in T
ons Local Sales in T
ons Export Sales in T
ons
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
Production and Sales Analysis for DGKC and LCL
2012 DGKC 2013 DGKC 2014 DGKC 2012 LCL 2013 LCL 2014 LCL

6. PROFITABILITY ANALYSIS
Gross Profit Margin Net Profit Margin Return on Capital Employed
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Profitability Analysis for DGKC and LCL
2012 DGKC 2013 DGKC 2014 DGKC 2012 LCL 2013 LCL 2014 LCL

7. LIQUIDITY ANALYSIS
Current Ratio Quick Ratio
-
1.00
2.00
3.00
4.00
5.00
6.00
Liquidity Analysis for DGKC and LCL
2012 DGKC 2013 DGKC 2014 DGKC 2012 LCL 2013 LCL 2014 LCL

8. SOLVENCY ANALYSIS
Gearing Interest Cover
-
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
450.00
Solvency Analysis for DGKC and LCL
2012 DGKC 2013 DGKC 2014 DGKC 2012 LCL 2013 LCL 2014 LCL

9. EFFICIENCY ANALYSIS
Debtor Collection Period Invetory Holding Period Creditors Payment Period
-
10
20
30
40
50
60
70
Efficiency Analysis for DGKC and LCL
2012 DGKC 2013 DGKC 2014 DGKC 2012 LCL 2013 LCL 2014 LCL

10. INVESTOR ANALYSIS
Earning/(Loss) per Share Dividenr per Share
-
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
Investor Analysis for DGKC and LCL
2012 DGKC 2013 DGKC 2014 DGKC 2012 LCL 2013 LCL 2014 LCL

11. SWOT Analysis

12. SWO
T
SWO
T
Strengths:
• Strong Group
• Expansion Plans
• Reapyment of
Loan
Strengths:
• Strong Group
• Expansion Plans
• Reapyment of
Loan
Weaknesses:
• Not fully utilizing
the production
capacity
• Declining exports.
Weaknesses:
• Not fully utilizing
the production
capacity
• Declining exports.
Opportunities:
• Increase in local
demand.
• Expected shortage
in Qatar
• Expo 2020 in UAE
Opportunities:
• Increase in local
demand.
• Expected shortage
in Qatar
• Expo 2020 in UAE
Threats:
•Security threats
•Political instability
•Electrcity crisis
•Cheaper Iranian
cement
Threats:
•Security threats
•Political instability
•Electrcity crisis
•Cheaper Iranian
cement

13. Porter’s Five Forces
Analysis

14. Bargaining
Power of
Supplier
Low
Bargaining
Power of Local
Suppliers
High
Bargaining
Power of
International
Suppliers
Bargaining
Power of
Customer
Low
Bargaining
Power for
Domestic
Customers
High
Bargaining
Power for
International
Customers
Substitute
No Substitute
Threat of New
Entry
Low Threat
High number
of Barriers
Rivalry
Price war
expected
No different
prices

15. Conclusion
Analysis of
Business
Performance
Strategic
Position in
indsutry
Future
Perspective
Analysis of
financial
performance
Recommendations
Focus on
decreasing
export sales
Focus on
MENA cement
demand
Focus on Pak-
China
Contract
Hedging to
avoid
exchange
gain/loss.

16. Any Question

17. Thank You