The Hub Power Company Limited (HUBC) is scheduled to announce its 4QFY21 financial result on 30th Aug’21. We forecast the company to post a consolidated profit after tax for 4QFY21 of PKR 8,529mn (EPS: PKR 6.57) compared to profit after tax of PKR 6,791mn (EPS: PKR 5.24) during 4QFY20. This will take the FY21 profit to PKR 33,446 (EPS: PKR 25.78), increasing 34% YoY. During 4QFY21, the uptick in earnings is mainly attributable to decline in finance costs.

During 4QFY21, sales are expected to increase by 17% YoY on the back of higher dispatches. Finance cost is expected to decline by 32% YoY to PKR 1,733mn, due to lower interest rates. We also expect the company to announce a dividend per share of PKR 3.00 with the result which will take full year payout to PKR 10/share.

Courtesy – AHL Research