Higher finance cost restricts HUBC’s net profits

September 12, 2019 (MLN): The Hub Power Company Limited (HUBC) has announced its financial results for the year ended on June 30th 2019, wherein the company has reported a slight increase in its net profit by 2% to Rs. 11.93 billion (EPS: 9.37).

During the period, company’s gross profit increased by 17.56% only due to drop in sales volume by 41.87% despite decrease in operating costs by 55%.

Moreover, the finance cost increased by 67% from 4.4 billion to 7.4 billion, owing to rise in interest rates, short term borrowings despite of PKR devaluation, which restricted earnings growth of the company to 2%.

Profit and Loss Account for the Year Ended June 30th 2019 (Rupees in '000)

 

Jun-19

Jun-18

% Change

Turnover

                     58,128,888

                     99,999,433

-41.87%

Operating costs

                  (36,640,036)

                  (81,720,455)

-55.16%

Gross Profit

                     21,488,852

                     18,278,978

17.56%

General and administration expenses

                     (1,605,994)

                     (1,524,972)

5.31%

Other income

                           526,966

                           218,863

140.77%

Other operating expenses

                        (127,688)

                        (109,941)

16.14%

Profit from operations

                     20,282,136

                     16,862,928

20.28%

Finance costs

                     (7,401,123)

                     (4,432,498)

66.97%

Share of loss from associates

                        (433,984)

                        (280,075)

54.95%

Profit before taxation

                     12,447,029

                     12,150,355

2.44%

Taxation

                        (516,722)

                        (485,572)

6.42%

Profit for the year

                     11,930,307

                     11,664,783

2.28%

Basic and diluted earnings per share – in Rupees

                                  9.37

                                  9.23

1.52%

 

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Posted on: 2019-09-12T16:54:00+05:00

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