Top 95 best performing companies listed on the Pakistan Stock Exchange (PSX) reported a cumulative net profit of Rs403 billion for the first quarter of the fiscal year 2024-25 (July-September), Express Tribune reported, citing data from Topline Research.
This figure marks a 14% decrease compared to Rs468 billion in the same period last year but reflects a 16% increase from the previous quarter ending June 30, 2024.
In dollar terms, the quarter’s earnings amounted to $1.4 billion.
These 95 firms, which constitute the KSE-100 index at the PSX and represent 99% of the index’s market capitalisation, saw the index slip by 577.53 points (0.64%) to close at 90,286.56 on Wednesday after reaching a record high near 92,000 points earlier in the day.
Topline Research attributes the year-on-year earnings decrease to downturns in key sectors, including oil and gas exploration (-21%), food (-15%), and refineries, with the latter incurring a Rs5.3 billion loss in contrast to a Rs12.7 billion profit in the same quarter last year. The banking sector, however, maintained steady earnings at Rs156 billion, accounting for 39% of the total KSE-100 index profits despite a dip in interest rates.
Fertiliser profits increased 16% to Rs56 billion (14% of the total index profits), supported by urea and DAP price hikes of 32% and 9%, respectively, despite lower demand.
The cement sector’s earnings rose by 14% to Rs35 billion, driven by higher retention prices, reduced coal costs, and an efficient power mix, offsetting weaker local demand.
The pharmaceutical sector’s earnings surged 5.6 times to Rs5.6 billion from Rs1 billion in Q1 FY24 due to improved margins on deregulated products and lower finance costs.
In contrast, sectors such as refineries, oil marketing companies, textiles, and oil and gas exploration reported declines of 142%, 86%, 60%, and 21% in profitability, respectively.
The technology sector also saw a Rs1.4 billion loss, mainly due to Pakistan Telecommunication Company’s performance.
Despite the mixed earnings, the companies announced cash dividends totaling Rs106 billion, reflecting a 3% increase from Rs104 billion in Q1 FY24.
The quarter’s dividend payout ratio was 26%, up from 22% in the same period last year, though down from 70% in the previous quarter.
Dividend payouts in oil and gas exploration rose to 21%, up from 6% last year, supported by better cash flow amid rising gas prices. The banking sector’s payout ratio also climbed from 36% to 38%.
The banking sector led in dividends with Rs59 billion, followed by oil and gas exploration at Rs18 billion and fertiliser at Rs6 billion.
