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Indomobil’s net profit drops on falling car sales
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A man walks past the Indomobil Finance office in Jakarta recently. (Kontan/Cheppy A Muchlis)
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drop in car sales nationwide in the first quarter of this year has affected the profits of major automotive distributors, including PT Indomobil Sukses Internasional, which has recorded a 17 percent decrease year-on-year (yoy) from Rp 5.05 trillion (US$376.64 million) to Rp 4.19 trillion.
“The company’s net profit stood at Rp 4.19 trillion in the first quarter of this year, in which 66 percent came from cars, 12 percent from automotive parts, 8 percent from financial services, 8 percent from car rentals and 17 percent from other things,” Indomobil president director Jusak Kertowidjojo said during a shareholders meeting in Jakarta on Friday.
In the first quarter, Indomobil recorded only Rp 2.77 trillion in car sales, a decrease from Rp 3.80 trillion in the same period last year.
Meanwhile, the company booked a 1 percent increase in gross profit yoy from Rp 662 billion to Rp 653 billion.
Jusak said that this year Indomobil had allocated Rp 1.2 trillion in capital expenditure (capex), mostly for new rental vehicles and cargo trucks. The company will also build four new outlets this year, spending Rp 10 billion to Rp 15 billion on each outlet.
“We are also constructing a new building in Jakarta, in which the office space will be rented out to partners. The cost of the building is about Rp 300 billion. However, as it is not finished yet, the construction cost will be included in next year’s capex,” Jusak said.
Association of Indonesian Automotive Manufacturers (Gaikindo) data shows that the industry sold 84,885 cars in January, a 9.9 percent drop on a backdrop of falling oil prices. (vps/dmr)
