JAKARTA (TheInsiderStories) – Conglomeration firm, PT Astra International Tbk (IDX: ASII), reported during 2020, the group businesses hit by the COVID-19 outbreak and slashed the net profit more than 50 percent, said the management on Thursday (02/25). Based on the company’ data, all the subsidiary’ businesses has been affected by the pandemic.
Last year, the group’ net profit fell by 53 percent to Rp10.3 trillion (US$735.71 million) from 2019, not included PT Bank Permata Tbk (IDX: BNLI) shares. With the share sales, the net profit is reported dropped by 26 percent to Rp16.2 trillion over the previous year.
“The revenue and net profit of the Astra group decline due to the impact of the COVID-19 pandemic and efforts to overcome it. We predict this condition will last for some time and still to early to predict the impact on the group’ performance in 2021,” said president director of Astra, Djony Bunarto Tjondro, in the company’ official statement today.
In detailed, net income for the automotive division decreased 68 percent to Rp2.7 trillion, reflecting a significant decrease in sales volume by 50 percent to 270,000 units. The sales of motorbikes also down by 41 percent to 2,892,000 units. The automotive component business unit, PT Astra Otoparts Tbk’ (IDX: AUTO), net income also lowered from Rp740 billion to Rp2 billion in 2020, mainly due to lower sales from the manufacturing, replacement parts market and export segments.
Then, financial services net income dropped by 44 percent to Rp3.3 trillion in 2020, mainly due to increased provisions to cover increased non-performing loan losses in the consumer and heavy equipment financing business. The value of new financing in these segments fell by 23 percent to Rp67 trillion.
Net profit from the financial services division decreased 46 percent to Rp803 billion and the net profit from PT Federal International Finance, which focuses on motorcycle financing, down 42 percent to Rp1.5 trillion. Total new financing disbursed by the unit that focus on heavy equipment financing decreased by 17 percent to Rp3.6 trillion. The slow businesses has make the net profit of the financial group decreased by 59 percent to Rp40 billion.
Then, heavy equipment, mining, construction and energy group’ net income fell by 49 percent to Rp3.4 trillion, mainly due to lower demands and weak coal prices throughout 2020. PT United Tractors Tbk (IDX: UNTR), which is 59.5 percent owned by Astra, reported a decrease in net income by 47 percent to Rp6.0 trillion caused of the weak Komatsu heavy equipment sales was dropped by 47 percent to 1,564 units.
Mining contractor, PT Pamapersada Nusantara‘ overburden removal also down to 825 million bank cubic meters and a 13 percent decrease in coal production to 115 million tonnes. However, the mining subsidiary reported an increase in coal sales of 9 percent to 9.3 million tones and PT Agincourt Resources, a subsidiary 95 owned by the miner, reported a 22 percent drop in sales of gold to 320,000 troy ounces.
The general contractor, PT Acset Indonusa Tbk (IDX: ACST), reported a net loss of Rp1.3 trillion, mainly due to the slowdown in completion of several ongoing projects and reduced project construction work during the pandemic. And, PT Bhumi Jati Power is in the process of constructing two 1,000MW steam power plants in Central Java.
He also reported, the agribusiness unit posted a net profit of Rp664 billion, a significant increase compared to net income in 2019, mainly due to higher palm oil prices. Palm oil producer, PT Astra Agro Lestari Tbk (IDX: AALI), which is 79.7 percent owned by the company, reported an increase in net profit from Rp211 billion to Rp833 billion. However, palm oil sales volume and its derivative products decreased by 14 percent to 2 million tones.
The infrastructure and logistics division recorded a decrease in net profit from Rp292 billion to Rp45 billion in 2020, due to a decrease in toll road revenues and in operating margins at PT Serasi Autoraya Tbk (IDX: SERA). Astra has ownership of shares in 358 kilometers of toll roads operating along the Trans – Java road network and the Jakarta Outer Ring Road toll road.
In November 2020, Astra acquired a 100 percent stake in PT Jakarta Marga Jaya, which owned 35 percent of PT Marga Lingkar Jakarta, the operator of the 7.7 kilometers’ Kebon Jeruk – Ulujami toll road, part of the Jakarta Outer Ring. The group’ toll road concessions saw a 12 percent reduction in traffic volume.
Lastly, the information technology division’ net profit decreased by 81 percent to Rp36 billion.
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