KSE100 Profitability down by 4.7pc YoY during FY19

Karachi, October 01, 2019: Earnings of the KSE-100 index depicted a downturn of 7.4 percent YoY during 4QFY19. Based on sectoral weight, this was led primarily by Cements (-82 percent YoY; 5.4 percent weight), Power Generation & Distribution (-46 percent YoY; 6.5 percent weight), Food & Personal Care Products (-76 percent YoY; 3.2 percent Weight), and Automobile Assemblers (-39 percent YoY; 2.7 percent weight).

Whereas sectors that remained top performers were Fertilizers (+47.1 percent YoY; 16.5 percent weight), Oil & Gas Exploration Companies (+47.4 percent YoY; 15.1 percent weight), Banks (+7 percent YoY; 27 percent weight), and Tobacco (+64 percent YoY; 2.8 percent weight).

Albeit, profitability during FY19 declined by 4.7 percent YoY driven by profits’ attrition of Cements (-33 percent YoY), Banks (-15 percent YoY), and Automobile Assemblers (-37 percent YoY). Jump in profitability was witnessed in Oil & Gas Exploration Companies (+46 percent YoY), Power Generation & Distribution (+12.5 percent YoY) and Fertilizers (+4 percent YoY). Sequential downturn in bottom-line of the KSE-100 index arrived at 6.5 percent QoQ led by pressure faced by Cement (-73 percent QoQ) and Power (-45 percent QoQ).

Sectors leading the profitability chart during FY19 were Technology & Communication (+123.7 percent YoY), Investment Banks (+89.8 percent YoY), and Leather & Tanneries (+48.2 percent YoY). During 4QFY19, Miscellaneous (+225 percent YoY), Leather & Tanneries (+150.2 percent YoY) and Tobacco (+63.8 percent YoY) led the earnings chart of the index.

During 4QFY19, the KSE-100 index declined by 4,748 points (-12.3 percent QoQ) majorly owing to Oil & Gas Exploration Companies (855 points), Banks (759 points) and Fertilizers (648 points).

During FY19, the KSE-100 index declined by 8,009 points (19.1 percent YoY) with the bearish trend being led by E&P Companies (-1,153 points), Commercial Banks (-1,077 points), Cements (-1,051 points) and the Oil & Gas Marketing (-921 points). On the other hand, Tobacco (+132 points) contributed positively to the index. 

We have based our analysis on the KSE-100 index companies. 86 companies have announced their results and have been included in this analysis while the remaining 14 companies have not yet disclosed their results. The companies which have been included in our analysis represent almost 92 percent of the market capitalization of the benchmark bourse.

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