One of the largest state-owned construction companies, PT Wijaya Karya (Persero) Tbk (WIKA) recorded a IDR 526.52 billion loss in Q1 2023. Ironically, the company also booked a net income of IDR 4.34 trillion. The company claimed that its losses was caused by the increasing burden of income.
Back in Q1 of 2022, WIKA received a net revenue of IDR 3.16 trillion, which was dominated by the building infrastructure segment. The number increased during the first three months of 2023.
On March 2023, WIKA earned IDR 2.37 trillion from the infrastructure and building segments, which is 56.95% higher compared to the number recorded in March 2022. In addition, WIKA’s revenue also came from the industrial, energy & industrial plant, hotel, realty & property, and investment segments.
In addition, WIKA recorded new contracts valued at IDR 2.09 trillion in February 2023. According to WIKA’s Main Director, Agung Budi Waskito, revenue from the first two months of 2023 comes from a combination of new projects and contracts obtained from the construction industry segment. One of the projects include the Ancol Sentiong Advanced Pump Station Development Project in Jakarta, which is valued at IDR 113.74 billion and targeted to be completed in December 2023.
“This new contract is a contract that uses progress payment terms, in accordance with the strategy to strengthen the Company’s condition from a financial standpoint,” said Waskito on April 9, 2023.
However, WIKA’s cost of revenues increased significantly by 43.57% to IDR 4.02 trillion compared to IDR 2.8 trillion recorded on March 2022. As a result, WIKA’s gross profit in Q1 2023 was cut by 9.77% to IDR 323.11 billion, and it was further eroded as operating expenses increased significantly.
Currently, the company’s total operating expenses for Q1 of 2023 had reached IDR 236.8 billion with notable increases in several other expenses such as cost of funding, which increased sharply by 101.34% to IDR 570.44 billion.
Consequently, WIKA suffered a significant loss of IDR 526.52 billion which was inversely proportional to a profit of IDR 9.47 billion in Q1 2022. Financially as of 31 March 2023, WIKA’s assets amounted to IDR 72.73 trillion. During the same period, the company had IDR 55.76 trillion in liabilities and IDR 16.96 trillion in equity. Meanwhile, the company’s balance of cash and cash equivalents is recorded at IDR 2.22 trillion.
