Profitability down by 1pc YoY during CY19

Karachi, March 13, 2020: Earnings of the KSE-100 index depicted a dip of 4 percent YoY during 4QCY19 which is owed to decline in earnings from heavy weighted sectors. Based on sectoral weight, this was led by Fertilizer (-19 percent YoY; 15.4 percent weight), E&P (-15 percent YoY; 12.2 percent weight) and Cement (-92 percent YoY; 8.2 percent weight).

On the other hand, sectors that remained top performers were Commercial Banks (+30 percent YoY; 26.8 percent weight), Power Generation (+89 percent YoY; 6.5 percent weight), and Chemicals (+16 percent YoY; 2.5 percent weight).

Whereas during CY19 earnings dropped by 1 percent YoY amid fall in profitability of Cements (-74 percent YoY), Fertilizers (-17 percent YoY), and OMC’s (-2 percent YoY). Surge in profitability was witnessed in Commercial Banks (+21 percent YoY), Power (+43 percent YoY) and E&P (+15 percent YoY).

On sequential basis,  KSE-100 Index’s bottom-line witnessed a minute decline, which was led by Automobile Assemblers (-19 percent QoQ), Fertilizer (-11 percent QoQ) and E&P (-9 percent QoQ).

Sectors leading the profitability chart during CY19 were Textile Weaving (+103 percent YoY), Investment Banks (+100 percent YoY) and Miscellaneous (+98 percent YoY). During 4QCY19, Miscellaneous (+278 percent YoY) and Tobacco sector (+179 percent YoY) led the earnings chart of the index.

During 4QCY19, the KSE-100 index climbed up by a massive 8,656 points (+27.0 percent QoQ) with a bullish trend led by Commercial Banks (+2,114 points), Fertilizer (+1,209 points), E&P (+1,205 points), Cement (+646 points) and Power Generation (+583 points). Meanwhile, Tobacco sector (-39 points) contributed negatively to the KSE-100 index.

During CY19, the KSE-100 index jumped up by 3,669 points (+9.9 percent YoY) majorly owed to Commercial Banks (+1,751 points), Fertilizer (+1,541 points), E&P (+909 points) and Automobile Assembler (+117 points). On the other hand, negative contribution to the index came from Cement (-195 points), Tobacco (-171 points), Refinery (-146 points) and Pharmaceuticals (-93 points). 

“We have based our analysis on the KSE-100 index companies. We have included the result of 83 companies while the remaining 17 companies have not disclosed their results. The companies which have been included in our analysis represent almost 92% of the market capitalization of the benchmark bourse.” Arif Habib group.

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