Islamabad, May 1, 2025: The KSE-100 index firms posted a 2% year-on-year (YoY) boost in profits for the third quarter of fiscal year 2025 (3QFY25), totaling Rs409 billion, up from Rs401 billion in 3QFY24, as reported by Topline Securities.
In dollar terms, this translated to $1.4 billion, reflecting the same 2% YoY increase.
However, when excluding the banking industry, overall profitability declined by 5% YoY, settling at Rs243 billion.
Interestingly, the banking sector alone delivered a remarkable 14% YoY surge in earnings, reaching Rs166 billion — accounting for 41% of the KSE-100’s total profit — powered by strong Net Interest Income (NII) and growing Non-Interest Income.
In contrast, the Exploration & Production (E&P) sector saw its profits fall by 10% YoY to Rs91.6 billion, mainly due to an 8.3% drop in international oil prices (averaging $74.96 per barrel) and lower oil and gas output.
Among the standout performers, the cement sector shone with a 28% YoY profit jump to Rs36 billion, benefiting from robust cement demand, improved pricing, lower financing costs, and easing coal prices.
Similarly, the automobile sector recorded a 35% YoY earnings increase to Rs20.5 billion, driven by a 23% rise in sales volumes, supported by reduced interest rates, falling fuel prices, and a gradual economic rebound.
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The food and personal care segment posted a 15% profit rise to Rs17 billion, helped by declining inflation and interest rates.
Notably, the pharmaceutical industry saw an extraordinary 97% surge in profits to Rs6.6 billion, thanks to improved profit margins after deregulation of non-essential goods and lower finance costs, though quarterly results dipped 10% due to seasonal sales shifts.
On the downside, the fertilizer sector suffered a sharp 27% YoY earnings decline to Rs28.5 billion, hurt by a 40% drop in urea sales and a 50% plunge in DAP sales, reflecting weak agricultural economics and falling urea prices.
Other sectors, including power, oil marketing companies (OMCs), textiles, and chemicals, reported earnings declines between 15% and 44% YoY.
The tech sector showed signs of recovery, cutting its losses to Rs511 million from Rs7.6 billion last year, mainly due to stronger results from TRG.
In terms of dividends, KSE-100 companies declared Rs119 billion in cash payouts, down 6% YoY, with the dividend payout ratio easing to 29%.
Notable dividend contributors included UBL (Rs13.4 billion), Meezan Bank (Rs12.5 billion), and OGDC (Rs12.9 billion), with the cement and power sectors showing mixed activity.
