PP Presisi Income Soars 498% to Rp 245 Billion in 2017
By : Abraham Sihombing And Aldo Bella Putra | Monday, March 12 2018 - 14:18 IWST
PT Pembangunan Peruamahan Tbk (Hariyanto/ INDUSTRY.co.id)
INDUSTRY.co.id - Jakarta - PT PP Presisi Tbk (PPRE), a unit of PT Pembangunan Perumahan Tbk (PTPP) in construction and integrated with heavy equipment, achieved consolidated profit of Rp245 billion in 2017. It showed a 498% jump compared to the previous year of Rp41 billion.
The surge in net profit was in line with the 387% jump in consolidated revenue in 2017 to Rp1.8 trillion from Rp371 billion in the previous year.
PPRE's consolidated revenue is bolstered by a significant increase in revenue generated from civil works, amounting to 617% to Rp1.4 trillion in 2017 compared to the previous year of Rp197 billion. In addition, revenues from civil works contribute 78% to PPRE's consolidated revenue in 2017.
The PPRE civil works revenue comes from the Bakauheni - Sidomulyo toll project, the Pandaan - Malang toll project, the Manado - Bitung toll road project, the Way Sekampung dam project, the Leuwi Keris dam project, the Sinabung lava control project and several carry over projects from the previous year.
In addition, the increase in PPRE's consolidated revenue was also due to a significant increase of ready mix / batching plant revenue, which amounted to 138% from Rp69 billion in 2016 to Rp163 billion in 2017.
The increase in ready mix / batching plant revenue is significantly in line with the increase in civil work revenue because the business model of ready mix / batching plant is business-to-business (B2B) which is usually directly related to civil work.
The ready mix or batching plant revenue contributes 9% to PPRE's consolidated revenue. Other contributors to consolidated revenue are formwork and heavy equipment rental at 13%.
The significant increase of PPRE's revenue was followed by the Company's success in managing the cost of goods sold and operational cost simultaneously resulting in a significant increase in gross profit and operating profit by 369% and 379%, respectively.
Gross profit increased from Rp95 billion in 2016 to Rp446 billion in 2017. Operating profit increased from Rp81 billion in 2016 to Rp389 billion in 2017. Profitability also increased. This is reflected in the increase in net profit margin from 11% in 2016 to 13% in 2017.
"We are proud of the achievement of PP Presisi in 2017 because the business transformation done since 2014 has paid off. That is reflected in the increase in revenue and net profit significantly, "said Iswanto Amperawan, President Director of PPRE, in Jakarta, Monday (12/03/2018).
Iswanto argued, inorganic growth in 2017 is a significant milestone. It complements organic growth to improve engineering capacity in an effort to strengthen PPRE's position as Indonesia's leading integrated construction company. (Abraham Sihombing)