A robust more than three-fold jump in the industrials sector’s earnings helped the Qatar Stock Exchange listed companies, except Qatar General Insurance and Reinsurance, report more than 30% year-on-year jump in net profit to QR10.93bn in January-March 2021
The banking and financial services and the industrials sectors together contributed 71% of the cumulative net profits in the review quarter, according to the bourse data.
The economic recovery and the rebound of the private sector translated into higher net earnings, market sources said, highlighting that the Q1 2020 was a "peculiar" period of uncertainty due to the beginning stage of lockdown when the industrials and real estate sectors were largely hit.
The industrials sector, which has 10 listed constituents, saw a huge 233.1% year-on-year surge in net profitability to QR2.55bn against a 50.61% decline in the year-ago period. The sector contributed more than 23% to the overall net profitability of the listed entities in the review period.
Within the industrials sector, the country’s underlying companies that have direct linkages with the hydrocarbons sectors saw price rebound, helping them substantially enhance the net earnings.
The latest Purchasing Managers’ Index (PMI) survey data from the Qatar Financial Center and IHS Markit indicated manufacturing was the strongest performer with its PMI reaching a six-month high.
The consumer goods and services sector, which has 10 listed entities, witnessed a 44.43% year-on-year increase in cumulative net profit to QR0.46bn at the end of March 30 compared to 33.17% shrinkage in the previous year period. The sector contributed more than 4% to the overall net profitability in the review period.
The realty segment, which has four listed entities, saw an 11.1% year-on-year jump in net earnings to QR0.39bn during the first three months of this year against a sharp 58.48% growth in the year-ago period. The sector constituted more than 3% of the overall net profitability in the review period.
The transport sector, which has three listed constituents, saw its cumulative net earnings grow about 10% year-on-year to QR0.67bn compared to 6.8% jump in the corresponding quarter of 2020. The sector's net profit constituted more than 6% of the total net profit of the listed companies.
The banks and financial services sector, which has 13 listed entities, reported 5.61% year-on-year growth in cumulative net profit to QR6.3bn against 3.47% fall the comparable period of 2019. The sector contributed about 58% of the total net profits of the listed companies in January-March 2021.