The combined earnings of 281 listed companies declined 44% from a year earlier to Rs96.5 billion in the December 2022 quarter, an earnings report by First Capital Research shows. It attributed the decline to weak performance in the capital goods, transportation, telecommunications, and diversified financial sectors

The Capital Goods sector experienced the sharpest decline of 82.6%, driven by the poor performance of Brown & Company and Hayleys due to rupee depreciation, increased material costs, and credit rating downgrades. The transportation sector declined by 87% due to reduced operating volumes and a global trade slowdown. The telecommunications sector saw a decline of 226.8% in net income, mainly caused by the devaluation of the rupee and tariff revisions. The diversified financial sector earnings decreased by 38.9% due to losses in LOLC and increased corporate tax rate.

However, some sectors performed well during the quarter. The energy sector saw a significant growth of 14,183.9%, driven by Lanka IOC’s stellar gains. The banking sector experienced a profit surge of 38.9%, led by Commercial Bank.