By Santhosh V Perumal/Business Reporter
Companies listed on the Qatar Exchange registered a marginal decline in their cumulative net profitability in 2012, dragged mainly by precipitous slippages in the realty sector, painting rather a pessimistic picture in an otherwise strong economy.
The bourse witnessed 10 of its listed companies (one less than in the previous year) report more than a billion riyals net profit in 2012.
The 41 total listed companies have reported more than 1% decline in their cumulative net profits against a stupendous 27% growth in the comparable period of 2011. The stock market, overall, had fallen 4.79% year-to-date (YTD) as on December 31, 2012.
Cumulative net profits stood at QR37.87bn in 2012 compared to QR38.43bn in the previous year period. Vodafone Qatar follows April-March format, while others follow January-December system.
The drag in overall cumulative profitability mainly came due to a steep decline in the net profits of the realty sector and a modest drop in the net gains of consumer goods segment, which, although, outperformed the bourse index.
However, telecom, industrials, banks and financial services, transport and insurance saw improvement not only in year-on-year growth but also in their contribution to total 2012 profit.
The bourse had introduced new sectors in April 2012, shuffling many entities from other sectors.
The real estate segment, which has four listed firms, reported a huge 56.57% plunge in net profit to QR2.37bn, which constituted 6.27% of the overall cumulative net profit in 2012 against 14.28% in the previous year.
Of the four, two each reported gains and falls. The gains were in the range of 18% to 29%; while slippages were 17%-80%. The real estate index had fallen 3.88% YTD in December, 2012.
The consumer goods and services sector, which has eight listed entities, recorded a 4.40% dip in net profit to QR1.46bn, which was 3.87% of the total cumulative net profit (3.98% in 2011).
The segment witnessed three of them register declines in net profits; while four gained and one in net loss. The gains were in the range of 15% to 36%; while slippages were in the 3% to 47% range. However, the segment was the best performer in the market with its index surging 37.86% to outperform the overall market.
However, the telecom sector (with a lone entity) saw the cumulative profit surge 12.98% to QR2.94bn, which constituted 7.77% of the total cumulative net profit (6.78% in 2011). The sector index had risen 11.86% YTD in December 2012.
The industrials sector, which has eight listed companies, reported a 10% jump in their cumulative net profit to QR12.12bn in 2012. Its share in total cumulative net profit stood at 32.01% in 2012 (28.67% the previous year).
Seven of the eight constituents witnessed gains in the range of 1% to 106%. The index soared 15.15% YTD in December 31, 2012.
The banks and financial services segment, which has 12 listed entities under it, reported a 6.90% surge in cumulative net profit to QR16.30bn, which was 43.04% of the overall cumulative net profits (39.67% in 2011).
The sector saw 10 of them report gains; while two reported shrinkages. Those reported gains were in the range of 4% to 30%; while shrinkage was in the range of 9% to 12%. The index was down 1.35% YTD in December 31, 2012.
The transport sector, which has three listed firms, recorded a 5.02% gain in cumulative net profit to QR1.69bn, which was 4.45% of the overall cumulative net profit (4.18% in 2011). Two among them witnessed gains in the range of 18% to 36% and one reported slippage in net profits. The sector index tanked 9.13% ytd in December 31, 2012.
The low-volume insurance sector, which has five constituents, reported a 4.91% rise in net profit to QR0.98bn, which was 2.59% of the total cumulative net profit (2.44% in 2011). Four among them reported gains in the range of 3% to 30% and one registered declines. Its index had surged 12.01% YTD in December 31, 2012.
