• The Hub Power Company Limited (HUBC) announced its 1QFY25 financial result today. The company posted consolidated earnings of PKR 19,125mn (EPS: PKR 14.74), up 12% YoY compared to PKR 17,082mn (EPS: PKR 13.17) during 1QFY24. Moreover, on an unconsolidated basis, the profit was recorded at PKR 7,785 (EPS: PKR 6.0) in comparison to PKR 4,047 (EPS: PKR 3.12), a surge of 92% YoY. The company skipped dividends after nine quarters.

Result Highlights       

• During 1QFY25, net sales declined 5% YoY to PKR 32,038mn compared to PKR 33,730mn in 1QFY24. This was mainly due to lower dispatches from Narowal Energy and Thar Energy Limited (TEL) and the appreciation of the PKR against the USD. Moreover, the topline dwindled by 9% QoQ.
• During 1QFY25, the company’s gross margins increased by 600bps YoY to 56% due to a lower load factor. Additionally, on a QoQ basis, gross margins rose by 400bps.
• The company recognized a share of profit from associate and joint ventures of about PKR 10,338mn during 1QFY25 compared to PKR 12,035mn during 1QFY24, a decrease of 14% YoY. On a QoQ basis, the share of profit plummeted by 29% QoQ amid higher profitability from Prime Internationals, an associate company, in 4QFY24.
• Additionally, finance costs during 1QFY25 declined by 23% YoY to record PKR 5,461mn due to lower interest rates in tandem with the decline in borrowings. Furthermore, finance costs decrease by 10% every quarter due to the reasons stated above.