The Hub Power Company Limited (HUBC) is scheduled to announce its FY24 financial result soon, where we expect the company to post consolidated earnings of PKR 66,891mn (EPS: PKR 51.6), an increase of 16% YoY compared to SPLY. On quarterly basis, we forecast the company to post a consolidated profit after tax of PKR 17,345mn (EPS: PKR 13.4) during 4QFY24, a fall of 27% YoY, amid elevated share of profit from associate and joint ventures in 4QFY23, on the back of the claim for property damage and business interruption amounting to USD 65mn.

Topline is expected to fall by 11% YoY in 4QFY24 amid lower dispatches from its narrowal plant. The gross profit is anticipated to arrive at PKR 16,144 mn vis-à-vis PKR 17,061mn, a decline of 5% YoY. In 4QFY24 finance cost is projected to settle at PKR 6,281mn (-16% YoY), as a result of decline in long term loan during the period.

We expect the company to distribute a dividend of PKR 4.0/share in 4QFY24, bringing the total dividend to PKR 15.5/share in FY24.