The Hub Power Company Limited (HUBC) is scheduled to announce its 1QFY24 financial result on Oct 25, 2023, whereby the company is expected to post a profit after tax of PKR 14.0bn (EPS: PKR 10.77) in 1QFY24 compared to PKR 9.1bn (EPS: PKR 7.01) during 1QFY23 (up 54% YoY).

The YoY rise in earnings is expected due to 28% PKR depreciation and the addition of TEL, ThalNova and Prime International. Sales are expected to decrease by 18% due to lower dispatches, however, the addition of TEL would abate the decline.

Finance cost is projected to settle at PKR 6.3bn in the outgoing quarter (+171% YoY) due to higher interest rates. Share of profit is expected to increase by 304% YoY amid higher profitability from associate companies and the addition of Prime International.

We expect the company to announce a cash dividend of PKR 6.00/share along with the result.

Courtesy – AHL Research