Hub Power Company (HUBC) has released its financial results for the first quarter of fiscal year 2024 (1QFY24), reporting a consolidated profit after tax of Rs. 18.3 billion. This represents a significant 93 percent increase compared to the same period in the previous year when it was Rs. 9.47 billion.
In addition to the financial results, the company has also declared an interim cash dividend of Rs. 5 per share. According to Topline Securities, HUBC’s 1QFY24 results have exceeded industry expectations slightly, primarily due to a higher share of profit from its associates and joint ventures.
The share of profit from associates and joint ventures has seen a remarkable YoY increase of 289 percent, reaching Rs. 12 billion in 1QFY24. This substantial growth is attributed to the earnings contributed by the ThalNova Power Plant, which commenced commercial operations on February 17, 2023, as well as increased earnings from China Power Hub Generation (CPHGC), aided by the devaluation of the Pakistani rupee against the US dollar.
However, the share of profit from associates and joint ventures did decline by 18 percent when compared to the previous quarter, mainly due to one-off insurance claims recorded in the fourth quarter of FY23.
HUBC’s finance costs surged by 203 percent YoY to reach Rs. 7 billion in 1QFY24. This increase is likely due to higher borrowings to support the newly operational ThalNova plant and Thal Energy, in addition to increased short-term borrowings and higher interest rates.
The effective tax rate for HUBC in 1QFY24 was 15 percent, compared to 10 percent in 1QFY23 and 8 percent in the fourth quarter of FY23.
The basic and diluted earnings per share attributable to the owners of the holding company for the quarter came in at Rs. 13.17, a significant improvement from Rs. 7.01 in the same period in the prior year.
As of the time the report was filed, HUBC’s stock on the stock exchange was trading at Rs. 97.4, showing a modest increase of 0.91 percent or Rs. 0.88 per share. The trading turnover amounted to 7,451,549 shares on that particular day.
