The above information was published in the consolidated financial statements of Coteccons Construction Joint Stock Company (CTD) for the first quarter of fiscal year 2024, equivalent to the normal third quarter of 2023. This business has just changed its fiscal year, starting from July of the previous year and ending in June of the following year.
Profit after tax during the period reached nearly 67 billion VND, while CTD had a loss of 3.5 billion VND in the same period last year. This company's profits have improved for five consecutive quarters, reaching the highest profit since the fourth quarter of 2020.
Profit after tax increased sharply thanks to improved revenue and gross profit. During the period, Coteccons had more than 4,100 billion VND in revenue, an increase of nearly 33%. Gross profit tripled to more than 100 billion VND, raising gross profit margin to 2.43%. The Board of Directors added that the policy of provisioning for risky projects that CTD implemented in previous years has mitigated the impact of labor costs, construction materials and macro factors. model the cost of capital during the period.
After the first quarter of fiscal year 2024, the company completed nearly a quarter of the full year plan. CTD targets to have nearly 17,800 billion VND in revenue and 274 billion VND in profit after tax. Although the above plan is a sharp increase compared to the 2023 fiscal year, the company's leadership said it was made in a cautious manner.
In general, Coteccons' business results go against the general trend of the construction industry. For a long time, many businesses fell into a pincer position: there were no new contracts and difficulty collecting old debts due to the frozen real estate market, and rising raw material costs increased cost prices.
During the annual meeting in mid-October, Chairman Bolat Duisenov said that the construction market has not prospered much as the macroeconomy has not improved significantly and real estate is still facing difficulties, even in big cities. However, he saw positive signs as foreign direct investment increased and large industrial construction projects were also started.
Coteccons also has bad debts when it has to make a total provision of nearly 1,200 billion VND for short-term bad receivables, equivalent to nearly 10% of total short-term receivables. Besides, the company's financial loan balance did not change significantly, while total liabilities decreased by 7% to more than 12,200 billion VND.
In terms of assets, Coteccons continues to be one of the businesses with abundant idle cash. As of the end of September, cash and cash equivalents increased by 18% to nearly VND 2,225 billion. Thanks to deposit interest rates, the company recorded more than 101 billion VND in financial revenue, an increase of 22%. In addition, the company has nearly VND 1,854 billion in short-term financial investments. Of which, stock investment is about 237 billion VND and temporary provision for losses of more than 15 billion VND.
Previously, Coteccons led the Hoa Lu Joint Venture to participate in the bidding for the construction and equipment installation package of the passenger terminal at Long Thanh International Airport (Dong Nai) , worth 35,000 billion VND. Mr. Bolat Duisenov said that although he was sad to fail, this bidding package only accounts for a small proportion in the company's business plan so it does not affect the future .
After the above failure, Coteccons still wants to expand into infrastructure construction because it believes that this field has a lot of potential and there are many opportunities for the company to hold a large market share. In addition, the company also plans to expand into social housing construction and renewable energy. At the same time, CTD is also preparing to attack foreign markets.
Siddhartha
