AKD Research - Off the Analysts Desk October 24, 2013 ___________________________________________________ HUBC: 1QFY14 Result Review (Below Expectations) HUBC announced its 1QFY14 result today. On an unconsolidated basis, the company posted NPAT of PkR1.8bn (EPS: PkR1.57) in 1QFY14, a decline of 14%YoY/9%QoQ. The result was below our expected NPAT of PkR2.6bn (EPS: PkR2.26), where the deviation was largely due to lower than expected revenue. We believe this may have been on account of prolonged maintenance during the period, leading to lower utilization. Key highlights of 1QFY14 result include: 1) revenue at PkR38bn, depicting a decline of 21%YoY likely due to longer than expected maintenance period but a sequential increase of 14%QoQ on revived generation from the Narowal plant, 2) financial charges dropping sharply by 48%YoY/38%QoQ due to lower short-term borrowing post circular debt retirement in Jun’13, and 3) gross margin contracting by 3.4pptQoQ. Going forward, we expect normalized operations from the Hub and Narowal plants to reflect in improved earnings in ensuing results, where we maintain our payout expectations for FY14. At current levels, HUBC trades at an FY14F D/Y of 14.4%. That said, given lower than expected earnings posted in 1QFY14 across the sector, we await detailed results and will update investors accordingly.
Posted on: Fri, 25 Oct 2013 07:20:34 +0000
Trending Topics
Recently Viewed Topics
© 2015