JAKARTA (TheInsiderStories) - PT Astra International Tbk (IDX: ASII) said the company sets aside capital expenditure of Rp15 trillion in 2016 that will be spent by all its business lines. The expenditure will support the company’s operations and business expansion this year, the company’s top official said.
President Director of Astra International Prijono Sugiarto said of this capex, Rp5-6 trillion will be allocated to PT United Tractors Tbk (IDX:UNTR) that will be used mostly to purchase new heavy equipment.
PT Astra Agro Lestari Tbk (IDX:AALI) will get Rp2.2 trillion in capital expenditure, PT Astra Graphia Tbk (IDX:ASGR) around Rp 1.5-2 trillion, which will be used to develop its business outlets.
The other portion of the capex will be allocated to PT Astratel Nusantara, which will be used to fund its toll road projects, such as Kertosono-Mojokerto and Kunciran Serpong toll road sections.
In addition, its banking subsidiary PT Bank Permata Tbk (IDX:BNLI) will get capital injection through the issuance of rights issue, amounting to Rp 3 trillion. Astra International, which holds 45% shares in the bank, is still upbeat about the prospect of Bank Permata, although the bank recordded losses of Rp6.48 trillion in 2016.
Independent Director of Astra International Gunawan Geniusaharja said Bank Permata has shown improvement as indicated by perfomrance improvement in the first month of 2017. In January 2017, Bank Permata has booked after-tax profit of Rp 136.5 billion.
According to Gunawan, Bank Permata recorded losses in 2016 mainly due to large provision for bad loans. Therefore, Astra plans to inject capital of Rp3 trillion into the bank this year, to strengthen its capital structure.
Profit rises 5 percent
In 2016, Astra International recorded net profit of Rp15.16 trillion, up 5% from Rp14.46 trillion in 2015, although its revenues edged down 2% to Rp181.08 trillion from Rp184.2 trillion in previous year.
The best performer was agribusiness business unit (led by Astra Agro Lestari), which recorded an increase of 224% to Rp1.6 trillion, from Rp493 billion in previous year, followed by automotive unit which increased by 23% to Rp9.17 trillion from Rp7.46 trillion in previous year.
Its heavy equipment business (including United Tractors) net profit also increased by 30% to Rp3.03 trillion from Rp2.34 trillion in previous year, while infrastructure and logistic rose 35% to Rp263 billion from Rp195 billion.
However, its financial service business unit (mainly contributed by Bank Permata) recorded net profit of Rp789 billion, down 78% from Rp3.5 trillion in previous year and its property business unit also fell 47% to Rp111 billion from net profit of Rp211 billion in previous year. (*)