HUB Power Company (HUBC) Surges with 93% YoY Profit Growth in 1QFY24

HUB Power Company (HUBC) has posted impressive financial results for the first quarter of the fiscal year 2024 (1QFY24). The company reported a consolidated profit after tax of Rs. 18.3 billion, marking a substantial 93% increase compared to the same period last year. This robust performance exceeded industry expectations, driven by a boost in the share of profit from associates and joint ventures (JVs). Notably, the share of profit from associates and JVs jumped by an astonishing 289% YoY to Rs. 12 billion, primarily due to the ThalNova Power Plant’s successful commercial operation and increased earnings from the China Power Hub Generation (CPHGC) amidst a rupee devaluation against the US dollar.

However, the profit from associates and JVs declined by 18% compared to the previous quarter due to one-off insurance claims. The company’s finance costs increased significantly, rising by 203% YoY to Rs. 7 billion, likely attributed to higher borrowings to fund newly operational plants and higher interest rates.

HUBC’s effective tax rate also rose to 15% in 1QFY24, compared to 10% in 1QFY23 and 8% in 4QFY23. The basic and diluted earnings per share for the holding company increased to Rs. 13.17, up from Rs. 7.01 in the same period last year. Following this impressive financial report, HUBC’s stock saw a 0.91% increase to Rs. 97.4 on the stock market, with a substantial trading volume of 7,451,549 shares.

Leave a Comment