October 29, 2021 (MLN): Hub Power Company Limited (HUBC), one of the first and largest independent power producers (IPP) of Pakistan, witnessed a 9% YoY decline in its consolidated net profits that stood at Rs7.70 billion (EPS: Rs5.72) during the first quarter ended September 30, 2021, against the net profits of Rs8.44bn (EPS: Rs6.28) earned in the same period last fiscal year.
This fall in profitability was mainly due to the higher operating expenses that led margins to plunge by 22ppt to 30% during 1QFY22.
On a consolidated basis, HUBC achieved a turnover of Rs26.34bn which is nearly 67% higher on the back of higher dispatches from both Narowal and HUBC’s base plant but, Laraib (Hydropower plant) operated at a weak load factor, a research note by Intermarket Securities said.
However, the gross margins of the company contracted from 52% to 30% in 1QFY22 due to an over two-fold jump in operating cost.
A reduction in general and administrative expenses by 42% YoY, a 12.8% YoY drop in finance cost amid a lower interest rate regime and an increase in other income by 3.77 times YoY supported the bottom-line.
More notably, the share of profit from associates clocked in at Rs2.29bn, down by 34% as opposed to Rs3.48bn earned in the same period last year.
|
Consolidated Profit and Loss Account for the quarter ended September 30th, 2021 (Rupees in '000) |
|||
|---|---|---|---|
|
|
Sep-21 |
Sep-20 |
% Change |
|
Turnover |
26,339,723 |
15,794,082 |
66.77% |
|
Operating costs |
(18,541,407) |
(7,654,849) |
142.22% |
|
Gross Profit |
7,798,316 |
8,139,233 |
-4.19% |
|
General and administration expenses |
(224,035) |
(386,061) |
-41.97% |
|
Other income |
216,842 |
57,409 |
277.71% |
|
Other operating expenses |
(23,090) |
(12,654) |
82.47% |
|
Profit from operations |
7,768,033 |
7,797,927 |
-0.38% |
|
Finance costs |
(1,659,737) |
(1,904,114) |
-12.83% |
|
Share of profit from associates and joint ventures-net |
2,292,650 |
3,482,171 |
-34.16% |
|
Profit before taxation |
8,400,946 |
9,375,984 |
-10.40% |
|
Taxation |
(705,440) |
(934,682) |
-24.53% |
|
Profit for the period |
7,695,506 |
8,441,302 |
-8.84% |
|
Basic and diluted earnings per share – in Rupees |
5.72 |
6.28 |
-8.92% |
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