August 26, 2024 (MLN): Hub Power Company Limited (PSX: HUBC) experienced a rise of 9.5% in its profitability, with its profit after tax rising to Rs33.88 billion [EPS: Rs26.12] in FY24, compared to a profit of Rs30.94bn [EPS: Rs23.85] in the previous fiscal year.
Along with the results, the Board of Directors (BoD) has also recommended a final cash dividend for the financial year ended June 30, 2024 at Rs8.50 per share.
This is in addition to Interim dividends of Rs11.5 per share have been paid during the financial year.
As per the results, HUBC managed to book a higher profit despite its Revenue from contracts with customers dropping by 6.7% YoY to Rs41.53bn.
This is because the company’s cost of sales fell by a greater proportion (41.2%), which improved the gross profit by 18.7% YoY to Rs30.43bn in FY24.
Accordingly, the gross margins improved to 73.3% as compared to 57.6% in SPLY.
On the expense side, the company’s general and administration expenses rose 72.5% YoY to Rs1.32bn, while other operating expenses increased 29.02% YoY to Rs129.19m.
Supporting the company’s profit, the other income segment saw a 3.7% increase, reaching Rs16.62bn in FY24, up from Rs16.03bn in FY23.
The company’s finance cost expanded by 23.2% and stood at Rs10.69bn as compared to Rs8.68bn in SPLY, mainly due to higher interest rates.
On the tax front, HUBC paid a lower tax worth Rs1.03bn against the Rs1.18bn paid in the corresponding period of last year, depicting a fall of 12.6%.
| Unonsolidated (un-audited) Financial Results for year ended June 30, 2024 (Rupees in ‘000) | |||
|---|---|---|---|
| Jun 24 | Jun 23 | % Change | |
| Revenue from contract with customer – net | 41,534,404 | 44,516,209 | -6.70% |
| Cost of sales | (11,100,728) | (18,875,135) | -41.19% |
| Gross Profit/ (loss) | 30,433,676 | 25,641,074 | 18.69% |
| General and administration expenses | (1,322,712) | (766,632) | 72.54% |
| Other Income | 16,618,586 | 16,025,976 | 3.70% |
| Other Operating Expenses | (129,186) | (100,130) | 29.02% |
| Finance Cost | (10,691,325) | (8,680,337) | 23.17% |
| Profit/ (loss) before taxation | 34,909,039 | 32,119,951 | 8.68% |
| Taxation | (1,029,863) | (1,178,244) | -12.59% |
| Net profit/ (loss) for the period | 33,879,176 | 30,941,707 | 9.49% |
| Basic earnings/ (loss) per share | 26.12 | 23.85 | – |
Amount in thousand except for EPS
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Posted on: 2024-08-26T12:06:12+05:00
