JAKARTA – The net profit of PT Astra International Tbk (ASII) slipped 14% year-on-year (yoy) to IDR 7.5 trillion at the end of the first quarter of 2024. This decline resulted from poor top segments’ performance, including automotive, as well as heavy equipment, mining, construction, and energy.

According to ASII’s press release quoted today (30/4), the net profit slippage aligns with ASII’s revenue performance, which also shrank 2% yoy to IDR 81.2 trillion at the end of Q1 2024 from IDR 83 trillion in Q1 2023.

From the automotive segment, Gaikindo has indeed recorded national car sales declining 24% to 215 thousand units in Q1 2024. In line with this trend, Astra’s car sales also dropped 20% to 120 thousand units.

Thankfully, Astra Otoparts (AUTO) showed profit growth of 10% yoy to IDR 475 billion in Q1 2024, thanks to its export that compensate for weakening domestic sales.

The mining sector, mostly covered by United Tractors (UNTR), also reported stunted profit performance, down 15% yoy to IDR 2.8 trillion, whereas UNTR itself reported 15% yoy decline in net profit to IDR 4.5 trillion.

“United Tractors’ coal mining subsidiaries reported a 33% increase in coal sales at 4.0 million tonnes (including 765,000 tonnes of metallurgical coal), but revenue declined due to lower coal prices,” added the management of ASII.

It is worth mentioning that automotive, financial service, as well as heavy equipment, mining, construction, and energy segments are the top three segments with highest contribution to total net income of ASII.

Automotive segment contributed 36.8%, followed by financial services of 28%, while heavy equipment, mining, construction, and energy segment generated the highest percentage, 37% of total net profit of ASII in Q1 2024. Therefore, it is quite predictable to see ASII’s slippage as both segments stumbled.

On the other hand, infrastructure and logistics reported highest net profit surge in Q1 2024, 24% yoy to IDR 251 billion, due to increased toll revenue and improvement of Serasi Autoraya.

This net profit surge was also seen on information technology segment, up 16% yoy to IDR 22 billion, while financial services shifted 12% yoy to IDR 2.1 trillion, and agribusiness line climbed a shy of 3% yoy to IDR 184 billion.

In regard to its shrinkage in both financial and stock performance, ASII remains optimistic. “Astra has divergent portfolio and they are all well-diversified. All segments have indicated consistent growth, with CAGR in the past 5 years reaching 9%,” claimed Djony Bunarto Tjondro, President Director of ASII, during the Press Conference of AGMS of ASII today (30/4). (ZH)