The Hub Power Company Limited (HUBC) is scheduled to announce its 3QFY21 financial result on 30th Apr’21. We forecast the company to post a consolidated profit after tax for 3QFY21 of PKR 8,435mn (EPS: PKR 6.50) compared to profit after tax of PKR 7,201mn (EPS: PKR 5.55) during 3QFY20. This will take the 9MFY21 profit to PKR 24,777 (EPS: PKR 19.10), increasing 36% YoY.

During 3QFY21, the uptick in earnings is mainly attributable to i) PKR depreciation and ii) decline in finance costs. Sales are expected to decrease by 2% YoY during 3QFY21 on the back of lower furnace oil prices, while dispatches have increased by 13% YoY. Finance cost is expected to decline by 45% YoY to PKR 1,721mn, due to lower interest rates.

Courtesy – AHL Research