Synergy Business Model of Dharma Group Boosts Strong Performance in Q1 2023

By : Nata Kesuma | Monday, May 01 2023 - 21:30 IWST

PT Dharma Polimetal Tbk (“DRMA”)

INDUSTRY.co.id - Jakarta, – PT Dharma Polimetal Tbk (“DRMA”), a leading automotive component manufacturer in Indonesia, announced impressive Q1 2023 results, recording net sales of Rp1.4 trillion, a 57.4% increase compared to Q1 2022 sales of Rp915.8 billion.

DRMA's solid sales growth was supported by a significant improvement in 4W component sales and enhancement of its market share, resulting to an increase in gross profit of Rp258.0 billion, up double digit by 85.3% YoY in 1Q 2023.

Besides that, the Company efficiently managed its operating costs amidst rising demand for its products, resulting in a higher net profit attributable to the Company of Rp216.1 billion, up by 86.5% YoY in 1Q 2023.

In the first quarter of 2023, the Company expanded its market share, along with the expansion of its product portfolio in manufacturing suspension members for one of Indonesia's car brands.

The Company plans to commence commercial operations of the suspension member by the end of the first semester of 2023. After successful commercial production, the Company will target to expand its product portfolio to other components.

Furthermore, in order to strengthen its future business, Dharma Group acquired PT Trimitra Chitrahasta which is a vehicle component manufacturer, specializing in metal stamping, welding, bending process and supplying to OEM companies in Indonesia. Through this acquisition, DRMA strengthens its business synergy in facing competition in the 2W & 4W component industry in Indonesia.

DRMA supports one of Indonesia's leading car brand in the development of battery components through the installation of an electro-dipping line (ED line) to produce electric vehicle components. On the other hand, Dharma Group has supplied battery packs to one of the 2-wheel electric motorcycle brands.

As the only local manufacturer with a comprehensive one- stop-shop to support electric vehicle components, Dharma Group is strategically located to meet the rapidly growing market demand as the industry shifts to sustainable transportation.