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LISTED COMPANY - JAKARTA. PT VKTR Mobility Technology Inc. (VKTR) reported a net income of IDR 205 billion for the first quarter of 2024, a 29.79% decrease from IDR 292 billion in the first quarter of 2023.
According to VKTR's Director, Gilarsi W. Setijono, the primary cause of the revenue decline was a drop in sales from the spare parts manufacturing business, coinciding with a decrease in national vehicle sales during the quarter.
On the other hand, VKTR recorded sales in the electric vehicle (EV) segment in the first quarter of 2024, a stark contrast to the first quarter of 2023, which saw no sales in this segment.
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From a balance sheet perspective, there were not many changes. Total assets increased by 0.5% to IDR 1.68 trillion at the end of March 2024, up from IDR 1.67 trillion at the end of 2023. Meanwhile, total liabilities decreased by 3% to IDR 505 billion in the first quarter of 2024, down from IDR 520 billion in FY 2023.
"VKTR is focused on improving margins, primarily driven by good cost control in the spare parts manufacturing business segment and sales in the EV business segment, which were previously non-existent in 1Q23," said Gilarsi in a press release on Tuesday (30/4).
In the EV sales segment, throughout the first quarter of 2024, VKTR has been strengthening its expansion of business-to-business (B2B) client portfolios, which have a vision towards sustainability, initially only business-to-government (B2G).
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This is reflected in the continuation of electric bus sales to private companies throughout this quarter. VKTR has explored several collaborations in the first quarter of 2024 to drive EV adoption and sales in Indonesia, such as a joint venture with one of Indonesia's leading vehicle distribution companies to maximize sales channels; and signing a strategic partnership with one of Indonesia's largest state-owned enterprises for green financing solutions through the electric-Mobility as a Service (e-MaaS) scheme.
"Several factors contributed to our sales decline in line with the downturn in the national automotive industry, such as the Presidential election that took place in 1Q24, which led many parties to adopt a wait-and-see approach," Gilarsi explained.
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In addition, Gilarsi continued, the uncertainty of global macro conditions amid the heating geopolitical conditions in the Middle East, which impacted the weakening of the rupiah, led to a decrease in consumer purchasing power.
However, despite challenging external conditions, the spare parts manufacturing segment was able to drive margin improvement thanks to good financial control.
In terms of EVs, VKTR remains consistent in completing the progress of building the first completely knock down (CKD) based commercial electric vehicle facility in Indonesia in Magelang, which is targeted to be completed by September 2024.
