By: WE Financial Services Limited
HUBCO: FY16 to begin with limited growth in earnings The Hub Power Company Limited (HUBC) is scheduled to announce corporate results for 1QFY16 on October 28, 2015. We anticipate the bottom-line of the company to post a minor growth of 3% YoY in 1QFY16 on the back of higher taxation and lower finance cost. However, the growth would be limited due to rehabilitation works carried out in one of its boiler. The profit after taxation (PAT) of the company is expected to total Rs2,160 million (EPS: Rs1.87) versus a PAT of Rs2,094 million (EPS: Rs1.81) in 1QFY15. Net sales of the company is expected to decline by 15% YoY in 1QFY16 to Rs38,855 million versus Rs45,754 million during the identical period in FY15.
LUCK: Double digit bottom-line growth likely The meeting of the board of directors of Lucky Cement Limited (LUCK) is scheduled to be taken place on October 29, 2015 to announce corporate results for 1QFY16 where it’s bottom-line is anticipated to post 18% YoY growth primarily owing to rise in volumetric sales and lower coal prices. The profit after taxation (PAT) of the company is likely to total Rs3,157 million (EPS: Rs9.76) in 1QFY16 versus a PAT of Rs2,669 million (EPS: Rs8.25) in 1QFY15. Owing to higher volume, the net sales is expected to grow by 2% YoY in 1QFY16 to Rs10,671 million while due to lower coal prices, the cost of goods sold to decline by 6% YoY in 1QFY16 to Rs5,668 million. Therefore gross profit would hike by 13% YoY in 1QFY16 to Rs5,002 million versus Rs4,412 million during the identical period in SFY15. Similarly, the gross profit margin is expected to reach 46.9% in 1QFY16 as against 42.1% in 1QFY15.