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Indomobil’s net profits drop on falling car sales
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A man walks past an Indomobil Finance office in Jakarta recently. (Kontan/Cheppy A Muchlis)
T
he 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 profits stood at Rp 4.19 trillion in the first quarter this year, in which 66 percent came from cars, 12 percent from autoparts, 8 percent from financial services, 8 percent from car rental and 17 percent from others,” Indomobil president director Jusak Kertowidjojo said during a shareholders’ meeting in Jakarta on Friday.
In the first quarter, Indomobil only booked Rp 2.77 trillion from the sale of cars, down from Rp 3.80 trillion in the same period last year.
Meanwhile, the company booked a 1 percent increase in gross profits yoy from Rp 662 billion to Rp 653 billion.
Jusak also said that this year Indomobil had allocated Rp 1.2 trillion in capital expenditure (capex), which would be spent mostly on new rental vehicles and transportation trucks for logistics services. The company would also build a total of four new outlets this year, with a budget of Rp 10 billion-15 billion for each outlet.
“Actually, we have also been constructing a new building in Jakarta, in which the office space will be rented to our partners. The cost of the building is about Rp 300 billion. However, as it is not finished yet, the budget will be included to the next year’s capex,” Jusak said.
Automotive industry association (Gaikindo) data shows that the industry sold 84,885 cars in January, a 9.9 percent drop against the backdrop of falling oil prices. (vps/dmr)
