The profitability of the KSE-100 index continues to rise, registering a growth of 24% YoY during FY24, the highest profitability on an FY basis.
The growth in profitability during the period came on the back of 6%, 23%, 35%, 38%, 84%, and 137% YoY growth in the E&P, Power, Bank, Cement, Fertilizer, and OGMC sectors, respectively.
Commercial Banks: Sector profitability posted 35% YoY growth to PKR 591bn amid higher net interest income.
Oil and Gas Exploration: Profitability of the sector is up by 6% YoY to PKR 440bn during FY24 given currency depreciation and taxation reversal on depletion allowance.
Fertilizer: Earnings augmented by 84% YoY to settle at PKR 141bn owed to 59% higher urea prices coupled with an increase in urea and DAP sales by 2% and 40% YoY, respectively.
Cement: Bottom-line surged by 38% YoY to PKR 115bn amid higher retention prices and lower coal prices, which offset the impact hike in energy tariff, and declining local dispatches.
Chemical: Profitability plummeted by 13% YoY to PKR 37bn, which was primarily due to a one-off gain booked by Lucky Core Industries Limited during SPLY owing to the sale of NutriCo Morinaga along lower international chemical margins.
Power: Net profit climbed up by 23% YoY to PKR 93bn. The major contribution to this growth comes from HUBC amid i) the addition of local coal-based plants, ii) a higher share of profit from associates and joint ventures, and iii) PKR depreciation.
OGMCs: Earnings climbed up by 137% YoY due to higher ex-refinery prices during the period, leading to inventory gains.
Auto Assembler: Bottom-line surged by 92% YoY, settling at PKR 25bn better margins amid higher prices of passenger vehicles and tractors.
Refinery: Net profit declined by 14% YoY to PKR 10bn owed to lower GRMs.
Engineering (Steel): Profitability down by 22% YoY to PKR 8bn, led by MUGHAL and INIL amid lower sales and margins.
We have based our analysis on the KSE-100 index and have included the results of 87 companies. The companies that have been included in our analysis represent almost 94.4% of the market capitalization of the benchmark bourse.
