Home / Front Page/ Corporate earnings up despite tough times

Corporate earnings up despite tough times


Comments / {{hitsCtrl.values.hits}} Views / Monday, 3 September 2018 00:21

Facebook

Earnings of listed companies have been up 4% in the Second Quarter and 11% for the 12 months despite challenging times. 



According to broking firm CTCLSA, market earnings in 2Q2018 grew +4% by Rs. 50.25 billion as against Rs. 48.236 billion a year earlier. However the 2Q2018 figure is lower compared with the Rs. 74.69 billion achieved in 1Q and Rs. 79.6 billion posted in 4Q of 2017.



In 2Q2018, earnings were driven by the Banks Finance and Insurance (BFI), Beverage Food and Tobacco (BFT), Telecommunications (TEL) and Power and Energy (PE) sectors. “Earnings growth was however somewhat offset by weak earnings in Diversified Holdings (DH), Manufacturing (MAN) and Plantations (PLN), and losses in the Hotels & Travel and Construction & Engineering (CE) sectors,” CTCLSA said. 



Banks Finance and Insurance firms saw their earnings gain 22% YoY (59% of 2Q2018 total earnings, 29% of total market cap), driven by Licensed Commercial Banks (LCBs) and Insurance Companies on account of improved core banking and insurance income.



The Beverage Food and Tobacco sector saw a +26% YoY gain in earnings (18% of 2Q2018 total earnings, 26% of total market cap), driven by strong growth demonstrated by sector 

heavyweights.



The telecommunications sector reported a +33% YoY gain (9% of 2Q2018 total earnings, 5% of total market cap), driven by revenue growth witnessed with the removal of the telco data levy.

According to the Trailing Twelve Months (TTM), market earnings increased +11% YoY to Rs. 251.7 billion largely due to strong earnings in Banks Finance and Insurance, Beverage Food and Tobacco, Telecoms and Diversified Holdings despite the losses in the Construction and Engineering and Manufacturing sectors.



CTCLSA also said the Colombo Stock Exchange (CSE) had witnessed a market decline, with the All Share Index (ASPI) falling -6% in 2018YTD (as at 30 August 2018).



In terms of sector index performance, the BFT sector witnessed positive movement, increasing +7% YTD, whilst the CE, MAN, PLN and PE sector indexes declined -39% YTD, -25% YTD, -24% YTD and -11% YTD respectively.



Current TTM market PER stands at 10.5X and CTCLSA forecasts forward market PER at 9.6X by end-2018, supported by YoY total market earnings growth of +12% YoY.


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

No more stones to break Sri Lankan bones

Friday, 19 April 2019

Trial by fire is not a new ordeal to Christian community. It predates Notre Dame and Nazism by millennia. In fact, a decade or so before Nero torched believers to light Roman avenues, Jewish religious leaders put Jesus-followers to the test as the Ch


Wounding the social psyche

Friday, 19 April 2019

In this article, I intend to discuss the serious wounds inflicted on the psyche of Sri Lankan society, which have not received adequate attention, but need immediate cure, for they might develop into a dangerous cancer if not treated without further


What 5G could be to Game of Thrones (and vice versa)

Friday, 19 April 2019

We will be hearing a lot about these two seemingly unrelated topics this month. In a hurriedly but meticulously organised event, Dialog Axiata recently demonstrated 5G applications for the first time in South Asia. 5G will be commercially available


On time – Only for a week! A must-change!

Thursday, 18 April 2019

We are in April and the month where we witness the declaration of a new year as per our traditional practice. It is that period of time when a huge majority of our population, which certainly can be counted in millions, intends to act in unison and q


Columnists More