Hubco’s half-year profit increases

Hubco Power Company’s profit rose to Rs5.680 billion for the first half ended December 31 from Rs5.561 billion in the corresponding period a year earlier.

Hubco recorded EPS of Rs4.67 during the period under review compared to Rs4.58 in the similar period last year. The company didn’t announce any cash dividend for the period. Topline Securities said 1HFY19 earnings grew two percent year-on-year, “primarily driven by rupee depreciation and lower admin and other expenses”.

“Keys risks to our investment thesis are lower than expected rupee devaluation, delay in commissioning of upcoming projects, and circular debt pile-up.” Hubco’s profit decreased 15 percent to Rs2.556 billion for the quarter ended December 31, translating into EPS of Rs2.11. The company earned Rs3.012 billion with EPS of Rs2.52 in the corresponding quarter earlier.