In our today’s morning report we would discuss the performance of Hub Power Company Limited (HUBC) in 1QFY15 and will give our recommendation on the scrip.
Hubco earning surge owing to lower maintenance cost
Hub Power Company Limited (HUBC) profit after taxation hike by 15.4% to Rs 2.09 billion compared Rs 1.81 billion profits during the 1QFY14. The earning per share of the Hubco remained at Rs 1.81 as against Rs 1.57 in 1QFY14. This was mainly attributed to increase in Project Cost Equity (PCE), lower maintenance cost and higher penal income. Similarly, profitability rise by 35% QoQ to Rs 2.09 billion against Rs 1.55 billion in 4QFY14 owing to lower maintain cost as rehabilitation works carried out in one boiler during 4QFY14.