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View all search resultsPADI reports sharp rise in net profits
Brokerage and underwriting company PT Minna Padi Investama (PADI) saw very strong growth in its net profits this quarter, soaring to Rp 31
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rokerage and underwriting company PT Minna Padi Investama (PADI) saw very strong growth in its net profits this quarter, soaring to Rp 31.7 billion (US$3.4 million) from a mere Rp 375 million over the same period last year thanks to a sharp increase in its investment returns.
PADI president director Djoko Joelijanto said in Jakarta on Monday that the company’s profits from its stock market investments reached Rp 25.2 billion during the first three months of this year.
With the sharp increase in profits in the first quarter of this year, the company has already met this year’s profit target of Rp 25.5 billion, Djoko said. But, he said the company did not have any plans to raise the target because there were concerns that the worsening eurozone debt crisis could affect the Indonesian stock market.
The company’s total revenues also surged year-on-year to Rp 34 billion in the first quarter, up 11-fold from Rp 3 billion, said PADI director Triny Talesu.
PADI raised about Rp 118.5 billion from the company’s initial public offering (IPO) in January this year. The company plans to use Rp 97.4 billion from the IPO to boost its working capital. Up to March, the company had spent Rp 75 billion on working capital.
The company has also repaid loans of Rp 1.3 billion to PT Bank Arta Graha Internasional. Another Rp 14.4 billion will be used to open new branches in Indonesia.
In March, PADI opened a new branch in Intercon, Kebon Jeruk, West Jakarta, adding to their current four branches in Surabaya, Semarang and Solo.
Djoko said that the company might look to Medan and Bali in opening its next branches.
“But we are leaning slightly toward Bali, because the market in Medan is getting crowded with competitors,” he said.
A further Rp 2.8 billion from the IPO will be used for developing information technology systems and online trading services to cater to PADI’s newer, more tech-savvy, clients.
“On the other hand, our long-time clients are more likely to call us rather than use the online systems, as they don’t want any hassle,” Triny said. (han)
