Mohsin Siddiqui (Chief Reporter)
HUBCO, Pakistan’s largest Independent Power Producer (IPP), experienced a remarkable surge in profits during the second quarter of fiscal year 2023-24, reaching a staggering Rs17.18 billion, marking a notable 17% increase compared to the same period last year. This substantial growth was disclosed in a notice submitted to the Pakistan Stock Exchange (PSX) on Wednesday.
In addition to the impressive profit figures, the company’s earnings per share (EPS) also witnessed a significant rise, reaching Rs11.78 for the period under review, compared to Rs10.25 in the corresponding period of the previous year (SPLY). Moreover, HUBCO declared an interim cash dividend of Rs4 per share, amounting to 40% for the second quarter, supplementing the interim cash dividend of Rs5 per share, or 50%, already distributed in the first quarter.
The company’s consolidated turnover experienced a substantial surge, reaching Rs29.91 billion in 2QFY24, marking a notable 19% increase compared to Rs25.09 billion recorded in the prior year. Despite a slight increase in operating costs, which rose to Rs13.16 billion in 2QFY24 from Rs12.23 billion in SPLY, HUBCO’s gross profit witnessed a significant uptick of over 30%, totaling Rs16.75 billion. This resulted in a commendable profit margin of 56% in 2QFY24, compared to 51.3% in SPLY.
Furthermore, HUBCO showcased a remarkable improvement in other income, recording an 82% increase year-over-year, reaching Rs900.45 million in 2QFY24, compared to Rs495.18 million in SPLY. However, the cost of finance saw a substantial jump, rising to Rs6.97 billion in 2QFY24, reflecting an increase of over 46%, attributed to significant interest rate hikes throughout the year.
On a positive note, HUBCO’s share of profits from associates and ventures also experienced a notable increase of over 6% yearly, totaling Rs10.56 billion in 2QFY24. Additionally, the IPP’s effective tax rate stood at 15.7% in 2QFY24, exhibiting a decrease from 17.5% in 1QFY24.
HUBCO, with a combined installed power generation capacity of 3,581 MW, operates across various business sectors, including oil and gas, mining, and industrial operations and maintenance services, through its subsidiaries.
