KARACHI: Quarterly pro­fits of the big companies listed on the Pakistan Stock Exchange (PSX) increased 19.9 per cent in October-Dece­mber on a year-on-year basis.

Based on the latest financial results released by 83 of the 100 constituents of the benchmark index, a research note by Arif Habib Ltd said on Tuesday three-month earnings of these firms amounted to Rs240.1 billion, up 0.6pc from the preceding quarter. These firms represent almost 90pc of the KSE-100 index’s market capitalisation.

Net income of these firms in 2021 totalled Rs940.2bn, up 47.3pc from 2020.

Growth in profitability was driven by the commercial banking sector, up 43.6pc, as the benchmark int­erest rate rose and the general provisioning made for Covid-19 was reversed. Pro­fits of cyclicals like cement and auto firms went up 26pc and 28.8pc, respectively, because of higher prices.

The oil and gas marketing companies as well as exploration and production firms posted bottom-line jumps of 384.6pc and 53.5pc, respectively, mainly on the back of higher oil prices.

However, incomes of the power generation sector com­­­panies dipped because of a lower share of profit from the associate of The Hub Power Company Ltd and lower capa­city payment of Kot Addu Power Co Ltd, it said.

Published in Dawn, March 2nd, 2022