Tuesday, June 15, 2021

March quarter earnings surge by 207% YoY to Rs 110.8 bn

March quarter earnings surged by 207% YoY to Rs 110.8 billion and this was led by Diversified Financials (988%YoY) which included Capital Goods (214%YoY), Food, Beverage & Tobacco (669%YoY), Banks (70%YoY) and Materials (267%YoY).

However, sluggish quarterly performance was witnessed on Consumer Services (-643%YoY) and Real Estate (-19%YoY) Consumer Durable and Apparel (-170%YoY) and Insurance (-4%YoY).

Meanwhile First capital also says that multiple sectors performed energetically.

They included diversified Financials, Food, Beverage and Tobacco, Capital Goods, Banks and Materials sectors that witnessed exceptional results.

Diversified Financials recorded a growth of 988%YoY primarily driven by the growth in LOLC (7,781%YoY) boosted by net other income and PLC (2,936%) owing to the reduction in impairment.

Food, Beverage and Tobacco sector earnings grew 669% YoY to Rs 16.7 bn led by MELS, NESTBUKI and CARS. MEL’s earnings spiked by 255% YoY due to increase in other income and lower taxation rate.

Capital goods sector too witnessed a growth of 214% YoY benefited from remarkable performance in HAYL (1,417%) due to the strong performance in Hand Protection and Consumer and Retail segments while also benefiting from currency depreciation.

Further the sector was benefited by TILE (962%YoY), LWL (1,753%) and RCL (330%YoY) supported by the import restrictions. Banks witnessed a 70% YoY growth in earnings to record at Rs 24.8 bn primarily driven by COMB (79%YoY), SAMP (91%) and HNB (55%).

However, the tourism industry continued to be adversely influenced, hence, Consumer Services sector earnings recorded a dip of 643% YoY. Real Estate sector earnings (-19%YoY)have slowed down due to the ongoing pandemic, out of which RIL and SHAW witnessed a decline in earnings by 65% YoY and 89% YoY, respectively.

 

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