Hub Power Company Posts Rs. 75 Billion Profit for FY24

The Hub Power Company Limited (HUBC) announced its FY24 financial result today where the company posted consolidated earnings of Rs. 75.29 billion, up by 21 percent over FY23. In 4QFY24, profitability fell by 14 percent YoY arriving at Rs. 20.47  billion compared to SPLY. Along with the result, the company also announced a cash dividend of Rs. 8.50 per share. During FY24, net sales witnessed an increase of 14 percent YoY to Rs. 130.52 billion compared to SPLY. Moreover, in 4QFY24, the topline rose by 8 percent YoY to settle at Rs. 35.09 billion as compared to Rs. 32.33 billion in SPLY. During FY24, the company’s gross margins increased by 600 bps YoY to 52 percent, In 4QFY24 the gross margins remained stable at 53 percent as compared to SPLY. The company recognized share of profit from associate and joint venture of Rs. 49.36 billion during FY24 compared to Rs. 34. 3 billion during FY23, a jump of 44 percent YoY, due to profitability coming from TNPTL, which achieved CoD on 17th February 2023 and devaluation of PKR against the greenback. In 4QFY24 share of profit slightly declined by 1 percent YoY to settle at Rs. 14.657 billion, according to Arif Habib Limited (AHL). Finance cost during FY24 rose by 38 percent YoY to clock in at Rs. 26.7 billion due to higher interest rates and the addition of TEL’s finance cost. However, in 4QFY24 finance costs declined by 18 percent YoY, as a result of the decline in long-term loans during the period. HUBC posted earnings per share (EPS) of Rs. 15.78 in 4QFY24 and an EPS of Rs. 53.98 in FY24. Its scrip closed at Rs. 154.3, up 5.55 percent or Rs. 8.11 with over 23.2 million shares on Monday.