The Hub Power Company Limited (HUBC) announced its 9MFY24 financial result today, where the company posted consolidated earnings of PKR 49,547mn (EPS: PKR 38.20), up by 47% YoY compared to PKR 33,647mn (EPS: PKR 25.94) during 9MFY23. In 3QFY24, profitability increased by 53% YoY, arriving at PKR 17,186mn (EPS: PKR 13.25) compared to SPLY. Along with the result, the company also announced a cash dividend of PKR 2.50/share (9MFY24: PKR 11.50/share).
Result Highlights
During 9MFY24, net sales witnessed an increase of 16% YoY to PKR 95,434mn attributable to higher dispatches from TEL (+76% YoY) as compared to SPLY and the devaluation of PKR against USD. Moreover, in 3QFY24 the topline rose by 17% YoY, due aforementioned reason, to settle at PKR 31,791mn as compared to PKR 27,231mn in SPLY.
During 9QFY24, the company’s gross margins increased by 866bps YoY to 52%, mainly attributable to the Hub base plant’s zero load factor during the period compared to 196 GwH dispatched during SPLY. In 3QFY24, the gross margins arrived at 52% vis-à-vis 48% in SPLY.
The company recognized a share of profit from an associate and joint venture of PKR 34,703mn during 9MFY24 compared to PKR 19,553mn during 9QFY23, a jump of 77% YoY, on the back of the devaluation of PKR against the greenback and profitability coming from TNPTL, which achieved CoD on 17th Feb’23. In 3QFY24, the share of profit surged by 87% YoY to settle at PKR 12,104mn, amid the aforementioned reasons.
Finance cost during 9MFY24 rose by 74% YoY to PKR 20,643mn due to higher interest rates and the addition of TEL’s finance cost. In 3QFY24 finance cost jumped by 40% YoY, amid higher borrowing costs.
Courtesy – AHL Research