Check which sector performance best in 3QCY24 amid earnings declined by 16% YoY

KSE-100 profitability declined by 16% YoY to PKR 400bn in 3QCY24. The decline is mainly attributable to a drop in earnings in the E&Ps, Chemicals, OGMCs, Food, Textile Composite, Refinery, and Glass sectors.

Commercial Banks: Banks posted a meagre drop on YoY basis in 3QCY24, clocking in at PKR 157bn given a decline in interest rates.
Oil and Gas Exploration Companies: Profitability plummeted by 20% YoY, arriving at PKR 86mn, given i) a fall in oil prices, ii) appreciation of the Pak Rupee against the greenback, and iii) lower oil and gas production.
Fertilizer: During 3QFY24, profitability increased by 10% year over year due to a 32% year over year and 9% year over year jump in urea prices and DAP, respectively.
Cement: Profitability witnessed a growth of 14% YoY given higher retention prices and lower interest rates.
Chemical: Profitability plummeted by 31% YoY to PKR 8bn, majorly attributable to subdued margins and higher gas prices.
OGMCs: Earnings plunged by 81% YoY to PKR 6bn on the back of inventory losses amid decreasing oil prices tagged with 3% YoY decline in overall sales of petroleum products.
Pharma: The sector’s bottom line surged by 4x YoY, clocking in at PKR 5bn, due to the increase in the price of medicines.
Textile Composite: The bottom line was reduced by 85% YoY, which is majorly due to a decline in ILP’s profitability during the quarter amid i) higher depreciation from the newly commissioned apparel plant, ii) higher energy tariff, and iii) higher taxation due to change in tax regime
Profitability of the KSE-100 index witnessed a decline of 7% YoY during 9MCY24.
The decline in profitability during the period was due to a 12%, 18%, 35%, 57%, and 70% YoY decrease in earnings of the Glass, E&Ps, Chemicals, OGMCs, and Textile Composite sectors, respectively.
Commercial Banks: Sector profitability posted 7% YoY growth to PKR 438bn amid higher non-funded income.
Oil and Gas Exploration: Profitability of the sector plummeted by 18% YoY to PKR 279bn during 9MCY24 given i) lower oil prices, ii) contraction in hydrocarbon production, and iii) a loss on modification in terms of TFCs amounting to PKR 23bn booked by OGDC.
Fertilizer: Earnings augmented by 55% YoY to settle at PKR 114bn owed to 51% and 15% YoY higher urea and DAP prices, respectively.
Cement: The bottom line increased by 22% YoY to PKR 86bn amid higher retention prices and lower coal prices, which offset the impact of the hike in energy tariffs and the decline in local dispatches.
Chemical: Profitability plunged by 35% YoY to PKR 24bn during 9MCY24, which was primarily due to gain on partial disposal of NutriCo Morinaga (Pvt) Ltd (PKR 8.9bn) and a remeasurement gain on the retained interest of the same (PKR 8.2bn) booked by Lucky Core Industries during SPLY along with lower international chemical margins of the sector.
Power: Net profit increased by 14% year over year to PKR 76bn during the period. HUBC, NPL, PKGP, and KAPCO were the major contributors to this growth.