Aiming for 10% Revenue Growth, Dharma Polimetal (DRMA) Target on EV Components

CORPORATE STRATEGIC - JAKARTA. PT Dharma Polimetal Tbk (DRMA) is striving to continuously improve its business performance amidst the dynamics of the national automotive market. This issuer is also starting to seriously develop its electric vehicle component business.

President Director of Dharma Polimetal, Irianto Santoso, stated that DRMA is still maintaining a conservative revenue growth target of at least 10% by 2024. This decision was made considering the current conditions of the automotive industry.

“We are optimistic that the automotive market in 2024 will increase compared to the previous year,” he said on Friday (15/3).

DRMA is committed to focusing efforts on quality, cost, and delivery aspects related to the components produced by the company.

This will not only strengthen DRMA's market position related to existing products but also open potential for the company's market share expansion with the launch of new models in the future.

DRMA is also striving to develop core engineering to produce components that have not been localized in Indonesia.

With the requirement of Domestic Content Level (TKDN), DRMA management sees this as a great opportunity for the company's business growth in the future.

Meanwhile, DRMA is also prepared for expansion in the electric vehicle component segment, where the company has made significant investments and preparations for several electric vehicle components and its infrastructure.

Looking back before the Covid-19 pandemic, DRMA was preparing to enter the electric vehicle segment.

One of the products produced by DRMA, the three-wheeled electric vehicle, has been a valuable learning experience for the company to also develop battery pack products.

“Our goal is to be one of the most prepared companies in supplying electric vehicle components,” said Irianto.

Currently, DRMA provides various electric vehicle components such as wiring harnesses, smart keys, USB chargers, high-strength steel (HSS), and 2W EV battery pack. DRMA is also developing components such as a brushless direct current motor (BLDC) which has been successfully applied to conversion motorcycles.

Not only focusing on components, DRMA is also developing supporting infrastructure for electric vehicles such as charging stations for both slow charging and fast charging types.

Although not mentioned in detail, DRMA has gained the trust of one of the big brands in the national car industry, in 2023 the company installed an electro-dipping line. This component is used in the process of making battery pack casings used for electric vehicles.

Furthermore, DRMA is developing two new factories that mark a significant step in the expansion and development of the company's business.

The first factory is built through a subsidiary, Dharma Controlcable Indonesia (DCI), which is expected to operate commercially in early Q2-2024.

The second factory, built through the subsidiary Dharma Precision Parts (DPA), is scheduled to be completed in mid-2024 and is located in Cikarang, West Java.

“These two factories will become the center for the development of new components, especially for electric vehicles in the future,” concluded Irianto.

As known, DRMA achieved a net profit attributable to the parent entity of IDR 611.75 billion in 2023 or nearly doubled from the previous year.

This achievement was driven by DRMA's sales growth of 42% year-on-year (YoY) to IDR 5.54 trillion in 2023.