September quarter earnings surged by 61.1% to Rs.73.9bn for 268 companies: First Capital

Super September advances on healthy earnings in most sectors owing to recovery from C-19

September quarter earnings surged by 61.1%YoY to Rs. 73.9Bn for 268 companies owing to the robust performance in most of the sectors primarily led by Food, Beverage & Tobacco (96%YoY), Transportation (578%YoY), Capital Goods (112%YoY) and Materials (154%YoY).

However, sluggish quarterly performance was witnessed on Consumer Services (-32%YoY), Banks (-17%YoY) and Real Estate (-37%YoY).

Resilient performance in Food, Beverage & Tobacco, Transportation, Capital Goods and Materials witnessed significant recovery on the back of recommencement of economic activities.

CTC’s earnings was up by 9%YoY on the back of volume growth while earnings of MELS spiked by 193%YoY through the positive contribution from the Beverage segment and LION’s earnings was up by 17%YoY owing to the recovery in activities during the quarter amidst significant growth in Beer exports.

Consequently, led by the contribution from the above-mentioned counters, Food, Beverage & Tobacco sector earnings recorded an increase of 96%YoY.

Transportation sector witnessed a growth of 578%YoY primarily driven by the super normal profits attained by EXPO (646%YoY) because of the pandemic situation where there was a surge in demand for emergency supplies via air freight into North American markets.

Capital Goods witnessed a surge of 112%YoY, led by the growth in HAYL (19612%) boosted by the strong performance in Hand Protection, Purification Products, Agriculture and Plantation sectors.

Lastly, Materials sector witnessed a growth of 154%YoY largely benefitted from the exceptional performance in TKYO (163%YoY) amidst the increased demand for cement mainly arising from the residential sector.

Amid the prevalent situation, the hospitality industry continues to be adversely influenced, hence, Consumer Services sector earnings recorded a dip of 149%YoY.

Banking sector witnessed a decline of 17%YoY largely driven by SAMP (-53%YoY) and COMB (-23%YoY) impacted by the increase in impairment.

Real Estate sector earnings (-37%YoY) has slowed down due to the ongoing pandemic out of which OSEA witnessed a decline in earnings of 50%YoY chiefly due to the decrease in the sale of apartments by 81%YoY while rental income too dipped by 3%YoY.

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