Hubco’s profit up 20.54 pc in the third quarter
KARACHI: Hub Power Company (Hubco) reported net profit of Rs 8.8 billion for the quarter ended March 31, 2021, up 20.54% from net profit of Rs 7.38 billion recorded at the same period last year.
Earnings per share (EPS) for the quarter reached Rs 6.61 against EPS of Rs 5.55 last year. The company did not announce any payments with the company’s results.
“The increase in profits is mainly due to the higher share of profits of a partner (China Power Hub Generation Company Limited, which started business on August 17, 2019), the depreciation of the rupee against the ‘USD and lower financing costs,’ the company noted.
Turnover for the period under review was 12.02 billion rupees, up 1.77% from 11.81 billion rupees last year. “In the third quarter of fiscal 21, net sales increased due to a 13% increase in shipments to 187 GWh (plant: 0 GWh, Narowal plant: 91 GWh, load factor of 20% ; Laraib: 96 GWh, load factor 53%). During 9MFY21, sales were also up 6.0 percent, again driven by higher shipments (+ 20 percent from last year), ”said an analyst at Arif Habib Limited .
In the third quarter of fiscal 21, the company’s gross margins increased 4 points to 68%. The increase in margins is mainly due to the depreciation of the rupee in the third quarter of fiscal 21.
In the third quarter of FY21, Hubco recognized a share of CPHGC’s profit of Rs 4.078 billion, up 7% mainly due to a 3% depreciation of the rupee.
Financial charges fell 38 percent to 1,928 million rupees. The fall in financial costs was caused by the fall in interest rates.