KSE-100 firms report Rs1.62trn in earnings and Rs750bn in cash dividends for 2024

The total earnings of KSE-100 index companies reached Rs1.62 trillion in 2024, reflecting a slight decrease of 1% from Rs1.64 trillion in 2023, according to a note by brokerage firm Topline Pakistan Research. 

In dollar terms, profits stood at $5.8 billion, down 1% from the previous year. Excluding exploration and production (E&P) companies, profitability grew by 8%, totaling Rs1.25 trillion.

The E&P sector saw a 24% decline in profitability to Rs364 billion, primarily due to lower oil prices and reduced production. Meanwhile, the banking sector posted a 6% year-on-year increase in earnings, reaching Rs593 billion, driven by higher Net Interest Income (NII) and Non-Interest Income, accounting for 37% of total KSE-100 profitability.

The fertilizer sector reported a significant 79% rise in earnings, reaching Rs177 billion, largely due to higher Urea and DAP prices, despite a 1% drop in Urea sales. 

The cement sector also saw a 30% increase in earnings to Rs133.5 billion, driven by higher retention prices, lower coal costs, and a more efficient power mix. 

The automobile sector showed a strong recovery, with a 75% increase in earnings to Rs66.3 billion, propelled by a 52% rise in volumetric sales.

The pharmaceutical sector experienced a remarkable 3.4x growth in profitability, reaching Rs15 billion, up from Rs4.4 billion in 2023. This growth was mainly attributed to improved margins following the deregulation of non-essential products and a decline in finance costs.

Sectors such as engineering, chemicals, and textiles saw significant declines in earnings, with drops of 81%, 56%, and 38%, respectively. 

The technology sector showed signs of recovery, with losses narrowing to Rs17 billion in 2024, compared to Rs24 billion in 2023.

In the fourth quarter of 2024, KSE-100 companies reported earnings of Rs438 billion, up 1% year-on-year. Excluding the banking and E&P sectors, profitability saw a significant 40% improvement compared to the same quarter in 2023.

KSE-100 companies also declared a total of Rs750 billion in cash dividends in 2024, marking a 27% increase from Rs592 billion in 2023, translating to a dividend payout ratio of 46% compared to 36% last year.

Notable dividend announcements included Rs309 billion from the banking sector, Rs121 billion from E&P companies and Rs93 billion from fertilizers. Companies like United Bank (UBL), Meezan Bank (MEBL), and MCB Bank (MCB) were key contributors, alongside E&P companies such as Oil & Gas Development Company (OGDC) and Pakistan Oilfields (POL).

In the fertilizer sector, Fauji Fertilizer (FFC) led with a dividend of Rs49.6 billion, while Engro Fertilizers (EFERT) and Fatima Fertilizer (FATIMA) followed with Rs28.7 billion and Rs14.7 billion, respectively.

The automobile sector also saw significant payouts, with Indus Motor (INDU) leading the sector with a Rs12 billion dividend, followed by Millat Tractors (MTL) and Atlas Honda (ATLH). The cement sector also participated in the dividend payout, with Bestway Cement (BWCL) announcing Rs17.9 billion.