The Hub Power Company Limited (HUBC) is scheduled to announce its 9MFY24 financial result on 29th Apr’24. We expect the company to post consolidated earnings of PKR 48,214mn (EPS: PKR 37.17), depicting a healthy growth of 43% YoY.

Quarterly, we forecast consolidated profitability to arrive at PKR 15,854mn (EPS: PKR 12.22) during 3QFY24 vis-à-vis PKR 11,249mn (EPS: PKR 8.67) in 3QFY23, up by 41% YoY. Topline is expected to soar by 5% YoY in 3QFY24, amid higher capacity payments, primarily driven by the devaluation of PKR against the greenback.

The gross profit is anticipated to arrive at PKR 15,652mn vis-à-vis PKR 13,133mn, a growth of 19% YoY. In 3QFY24 finance cost is projected to settle at PKR 6,514mn, up by 38% YoY given higher interest rates and a jump in borrowings. Share of profit in 3QFY24 is expected to clock in at PKR 10,964mn against PKR 6,476mn in SPLY (up 69% YoY) due to profitability coming from ThalNova Power Thar (Private) Ltd (TNPTL), which commenced commercial operations from 17th Feb’24. In addition to the result, we expect the company to announce a cash dividend of PKR 8.00/share in 3QFY24 (PKR 17.00/share in 9MFY23.

Courtesy – AHL Research