Karachi: The KSE-100 index companies reported a strong performance in the fourth quarter of fiscal year 2025, with earnings rising by 21% year-on-year to Rs445 billion, according to a press release from JS Global. This growth was driven by notable gains in the banking sector and cement industry, despite some sectors facing declines.
The banking sector posted a robust 24% increase in earnings, amounting to Rs160 billion, attributed to higher Net Interest Income and non-markup income. In contrast, the Exploration and Production (E and P) sector faced a 6% decline in profitability, impacted by reduced hydrocarbon output and lower oil prices.
Cement sector profits surged by 79%, reaching Rs42.3 billion, fueled by increased export volumes and retention prices. Meanwhile, the automobile sector saw modest growth of 2% in profitability as passenger car sales spiked by 57%.
The food and personal care sector experienced an 11% rise in profits to Rs15.2 billion, while the pharmaceutical sector's earnings soared by 72%, reflecting regulatory changes. However, the fertilizer sector saw a 4% decline in earnings due to higher selling costs.
Other sectors such as power, refinery, and chemicals reported significant earnings declines. Conversely, Oil Marketing Companies (OMCs) and textiles registered 51% and 30% increases, respectively. The technology sector showed improved performance, reducing losses significantly.
The KSE-100 index companies also announced cash dividends of Rs272 billion in 4QFY25, marking a 7% increase from the previous year. The banking sector was the largest contributor, declaring Rs87 billion in dividends.
In the E and P sector, Mari Energies led with a Rs26 billion dividend announcement, followed by significant contributions from Oil and Gas Development Company and Pakistan Oil Fields. The fertilizer sector's major payouts came from Fauji Fertilizer, Fatima Fertilizer, and Engro Fertilizers.
Overall, the KSE-100 index witnessed a 9% quarter-on-quarter earnings growth, reflecting a positive trend in corporate profitability across various sectors. The analysis included 91 companies, accounting for 97% of the market capitalization of the index.