HUBCO: Profit skyrockets 50% in 9MFY23

April 27, 2023 (MLN): The profitability of Hub Power Company Limited (HUBC) soared by 50% YoY to clock in at Rs21.67 billion [EPS: Rs16.71] for the nine months ended 31 March 2023, as compared to profit after tax of Rs14.44bn [EPS: Rs11.14] in the same period last year (SPLY), the company’s stock filings on the stock exchange showed.

Along with the result, the company announced an additional interim cash dividend for the quarter of Rs 2.75/share i.e., 27.5%.

In the filing, the company’s top line declined by 16.17% YoY to Rs35.07bn as compared to Rs41.83bn in SPLY.

However, the cost of sales fell in a greater proportionate to sales decline which improved the gross profit by 8.78% YoY to Rs18.83bn in 9MFY23.

During the review period, other income inflated by 4.43x YoY to stand at Rs10.366bn in 9MFY23 as compared to Rs2.34bn in SPLY.

On the expense side, the company observed a 60.43% YoY increase in general and administration expenses to clock in at Rs639.26m during the review period.

The company’s finance costs surged by 36.21% YoY and stood at Rs5.99bn as compared to Rs4.39bn in 9MFY22, mainly due to higher interest rates.

On the tax front, the company paid 27.88% YoY lower taxes worth Rs379.64m as tax payments against the Rs296.87m paid in the corresponding period of last year.

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