HUBC’s profit takes a hit, drops 27% in HY25

February 26, 2025 (MLN): Hub Power Company Limited (PSX: HUBC) reported a decline of 27.37% in its profitability, with its profit after tax dropping to Rs25.79 billion [EPS: Rs17.99] for the half-year ended December 31, 2024, compared to Rs35.5bn [EPS: Rs24.95] in the same period last year.

The company declared an interim cash dividend of Rs5 per share, equivalent to 50%.

The company’s revenue from contracts with customers decreased by 25.31% YoY to Rs47.54bn, mainly due to lower sales.

However, the cost of revenue also declined by 23.37% to Rs23.11bn, leading to a gross profit of Rs24.43bn, reflecting a 27.05% decrease.

General and administration expenses remained largely unchanged at Rs1.04bn, while distribution and marketing expenses stood at Rs495.53mn.

Other operating expenses surged significantly by 1059.59% to Rs3.62bn, impacting overall profitability.

Meanwhile, other income saw a sharp increase of 97.47% to Rs2.33bn, supporting the bottom line.

The company's finance costs declined by 31.96% YoY to Rs9.56bn, reflecting lower borrowing costs.

Share of profit from associates and joint ventures decreased by 10.78% to Rs20.16bn.

As a result, profit before taxation dropped by 23.13% to Rs32.22bn.

The company’s taxation expense increased slightly by 0.34% to Rs6.43bn.

Attributable to the owners of the holding company, net profit stood at Rs23.33bn, down 27.89% YoY, while non-controlling interest stood at Rs2.45bn, reflecting a 21.99% decline.

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