HUBC’s profits increase by 33% in FY21

MG News | August 30, 2021 at 03:51 PM GMT+05:00

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August 30, 2021 (MLN): Hub Power Company Limited (HUBC) has wrapped FY21 on a positive note wherein the company posted 33.65% increase in net profits to Rs34.83billion (EPS: Rs25.97) for FY21 ended June 30, 2021 against net profits of Rs26bn (EPS: Rs19.31) of the corresponding period last year.

The increase in earnings seen in the financial results below is a result of lower finance cost and profits from its associate – China Power Hub Generation Company (CPHGC).

During the period under review, the turnover of the company surge by 13% YoY owing to higher load factor and increase in EPP component. While the gross margins of the company fell from 63% to 60% on an account of higher operating cost.

Meanwhile, the company gained profits of Rs15.50bn from associates CPHGC.

According to AKD Securities Limited, the contribution of profits for China Hub Power Generation Company Ltd (CPHGC) to HUBC’s FY21 net profit was RsR11.6bn. A payout from the subsidiary after meeting debt covenants and, first tranche of receivables settlement (cash received Rs5.9 per share) received in June’21 triggered the payout.

Amid lower interest rate regime, the finance cost of the company dropped by 38.34% to stand at Rs7.34bn in FY21.

In addition, the company has also a cash dividend of Rs 5 per share in addition to interim dividend of Rs7 per share. This takes full year dividend to Rs12 per share.

Profit and Loss Account for the year ended June 30th 2021 (Rupees in '000)
	Jun-21	Jun-20	% Change
Turnover	54,639,435	48,321,335	13.08%
Operating costs	(21,768,718)	(17,830,929)	22.08%
Gross Profit	32,870,717	30,490,406	7.81%
General and administration expenses	(1,378,990)	(1,499,790)	-8.05%
Other income	796,084	410,289	94.03%
Other operating expenses	(508,790)	(181,347)	180.56%
Profit from operations	31,779,021	29,219,558	8.76%
Finance costs	(7,340,718)	(11,905,155)	-38.34%
Share of profit from associates and joint ventures-net	15,500,581	13,700,361	-
Loss on shares to be transferred to GoB	-	(1,009,029)	-
Profit before taxation	39,938,884	30,005,735	33.10%
Taxation	(5,108,548)	(3,944,865)	29.50%
Profit for the year	34,830,336	26,060,870	33.65%
Basic and diluted earnings per share - in Rupees	25.97	19.31	34.49%

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