August 30, 2021 (MLN): Hub Power Company Limited (HUBC) has wrapped FY21 on a positive note wherein the company posted 33.65% increase in net profits to Rs34.83billion (EPS: Rs25.97) for FY21 ended June 30, 2021 against net profits of Rs26bn (EPS: Rs19.31) of the corresponding period last year.
The increase in earnings seen in the financial results below is a result of lower finance cost, profits from its associate – China Power Hub Generation Company (CPHGC) and PKR depreciation.
During the period under review, the turnover of the company surge by 13% YoY owing to higher load factor and increase in EPP component. While the gross margins of the company fell from 63% to 60% on an account of higher operating cost.
Meanwhile, the company gained profits of Rs15.50bn from associates CPHGC owing to PKR depreciation.
According to AKD Securities Limited, the contribution of profits for China Hub Power Generation Company Ltd (CPHGC) to HUBC’s FY21 net profit was RsR11.6bn. A payout from the subsidiary after meeting debt covenants and, first tranche of receivables settlement (cash received Rs5.9 per share) received in June’21 triggered the payout.
Amid lower interest rate regime, the finance cost of the company dropped by 38.34% to stand at Rs7.34bn in FY21.
In addition, the company has also a cash dividend of Rs 5 per share in addition to interim dividend of Rs7 per share. This takes full year dividend to Rs12 per share.
|
Profit and Loss Account for the year ended June 30th 2021 (Rupees in '000) |
|||
|---|---|---|---|
|
|
Jun-21 |
Jun-20 |
% Change |
|
Turnover |
54,639,435 |
48,321,335 |
13.08% |
|
Operating costs |
(21,768,718) |
(17,830,929) |
22.08% |
|
Gross Profit |
32,870,717 |
30,490,406 |
7.81% |
|
General and administration expenses |
(1,378,990) |
(1,499,790) |
-8.05% |
|
Other income |
796,084 |
410,289 |
94.03% |
|
Other operating expenses |
(508,790) |
(181,347) |
180.56% |
|
Profit from operations |
31,779,021 |
29,219,558 |
8.76% |
|
Finance costs |
(7,340,718) |
(11,905,155) |
-38.34% |
|
Share of profit from associates and joint ventures-net |
15,500,581 |
13,700,361 |
– |
|
Loss on shares to be transferred to GoB |
– |
(1,009,029) |
– |
|
Profit before taxation |
39,938,884 |
30,005,735 |
33.10% |
|
Taxation |
(5,108,548) |
(3,944,865) |
29.50% |
|
Profit for the year |
34,830,336 |
26,060,870 |
33.65% |
|
Basic and diluted earnings per share – in Rupees |
25.97 |
19.31 |
34.49% |
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