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.
| Consolidated Profit and Loss For The Half Year Ended December 31, 2024 (Rs '000s) | |||
| Particulars | Dec-24 | Dec-23 | %Change |
| Revenue from contracts with customers – net | 47,536,071 | 63,643,237 | -25.31% |
| Cost of revenue | (23,107,436) | (30,155,648) | -23.37% |
| GROSS PROFIT | 24,428,635 | 33,487,589 | -27.05% |
| General and administration expenses | (1,037,832) | (1,038,141) | -0.03% |
| Distribution & marketing expenses | (495,533) | – | |
| Other income | 2,332,787 | 1,181,335 | 97.47% |
| Insurance claim against alternator damage and consequent loss of revenue | – | 38,122 | |
| Other operating expenses | (3,616,513) | (311,879) | 1059.59% |
| PROFIT FROM OPERATIONS | 21,611,544 | 33,357,026 | -35.21% |
| Finance costs | (9,557,307) | (14,046,015) | -31.96% |
| Share of profit from associates and joint ventures – net | 20,162,517 | 22,599,911 | -10.78% |
| PROFIT BEFORE TAXATION | 32,216,754 | 41,910,922 | -23.13% |
| Taxation | (6,431,613) | (6,409,505) | 0.34% |
| PROFIT FOR THE PERIOD | 25,785,141 | 35,501,417 | -27.37% |
| Attributable to: | |||
| – Owners of the holding company | 23,334,655 | 32,360,304 | -27.89% |
| – Non-controlling interest | 2,450,486 | 3,141,113 | -21.99% |
| Basic and diluted earnings per share (EPS) (Rupees) | 17.99 | 24.95 | -27.90% |
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Posted on: 2025-02-26T11:36:15+05:00
