Companies listed on KSE-100 index recorded a 3% decline in profitability for 2024, reaching PKR 1,438 billion, according to data announced as of February 28, 2025.
This dip was primarily driven by significant earnings contractions across several sectors, including E&Ps, textile, chemicals, power, and OGMCs, which saw declines of 24%, 60%, 56%, 20%, and 10%, respectively.
A report by Arif Habib highlighted notable sectoral performance. Commercial banks’ sector profitability grew 11% year-on-year to PKR 567 billion, driven by higher interest income and non-funded income (capital gains).
The cement sector’s bottom-line increased 29% to PKR 133 billion compared with last year due to higher retention prices, other income, and reduced finance costs amid declining interest rates.
Auto assemblers’ earnings surged 96% to PKR 58 billion in CY24, benefiting from a low base effect from reduced sales volumes, low interest rates, and stable PKR-USD parity.
Sector earnings for fertilizers expanded by 44% to PKR 87 billion, bolstered by higher prices for urea and DAP.
The pharmaceuticals sector’s earnings grew sixfold year-on-year to PKR 9 billion due to price revisions of non-essential medicines and approval of hardship cases.
In contrast, the chemicals sector’s profitability plunged 56% year-on-year to PKR 15 billion in CY24, primarily due to lower international chemical margins and higher gas prices.
The textile composite sector’s profitability decreased 60% year-on-year to PKR 15 billion, affected by higher energy tariffs and export taxes.
Losses in the technology sector reduced by 26% to PKR 26 billion, aided by higher telecom service package pricing and lower finance costs. The oil and gas exploration companies’ profitability contracted by 24% to PKR 366 billion due to lower oil prices, reduced hydrocarbon production, and financial adjustments.
Net profits in the power sector fell 20% to PKR 64 billion, attributed to the termination of the Hub base plant’s PPA and CPPA-G’s adjustments.
The diverse performance across sectors highlights the varying challenges and opportunities faced by businesses in Pakistan in 2024.
