VKTR records 7% YoY top-line growth: Strong order backlog despite short-term cyclical EV demand, focuses on spending discipline and CKD plant completion
Jakarta, 26 October 2023
PT VKTR Teknologi Mobilitas Tbk (IDX: VKTR) and its subsidiaries proudly reported a 7% Year-on-Year (YoY) increase in net sales for the first three quarters of 2023, reaching IDR 891 billion. This decent growth was primarily driven by increased sales volume in the parts manufacturing division. VKTR’s total assets also demonstrated notable YTD growth of 66%, which stands at IDR 1,716 billion as of 9M23, mainly attributable to increase in cash balance from the IPO. VKTR’s total liabilities witnessed a 27% YTD decrease to IDR555 billion, mainly due to reduction in outstanding short- term loans. VKTR’s disciplined spending control led to a net cash position as of 9M23, a feature VKTR will continue to prioritize to demonstrate our commitment to financial resilience in the face of economic uncertainties.
VKTR continues to play a pivotal role in Indonesia's public bus transportation sector, exemplified by the deployment of 52 electric buses to Transjakarta. Over the past 19 months, these buses have collectively covered a distance of 3.6 million kilometers, serving over 10 million passengers. This equates to a reduction of more than 4,800 tons of CO2 emissions, underscoring VKTR's dedication to sustainable transportation and environmental preservation.
VKTR maintains a robust order book despite a temporary slowdown in our electric vehicle (EV) sales business unit as an effect of the ongoing macroeconomic cycle. It consists of a well-balanced mix of buses and trucks, catering to both B2G (Business-to-Government) and B2B (Business-to- Business) customers in our portfolio. Notably, our buses will now be produced at our Magelang facility in Completely Knocked Down (CKD) form, aligning with VKTR's commitment to local manufacturing.
Gilarsi W. Setijono, CEO of VKTR, affirms, "VKTR remains steadfast in our commitment as a pioneer to accelerate sustainable mobility and to lead the electric commercial vehicle market in Indonesia. While continuing our leadership in public transport electrification, we are diversifying into the electric mining truck segment. In the immediate future, our focus will be on the completion of the CKD facility in Magelang."
VKTR's parts manufacturing business continues to flourish, bolstered by strong demand from our commercial vehicle customers. The transition from Euro 2 to Euro 4 vehicle technology has further catalyzed our growth. Bakrie Autoparts, a subsidiary of VKTR, stands among the few component producers in Indonesia meeting these elevated standards.
In conclusion, VKTR acknowledges short-term challenges stemming from a temporary delay in bus orders as well as the effects of macroeconomic cycles that affect economic dynamics. However, our long-term outlook remains promising as evidenced by our robust order book. The investment in the CKD facility underscores our commitment to offering products that are not only affordable but also compliant with local content requirements (TKDN). Additionally, to expedite the EV adoption, the government has introduced a 10% Value-Added Tax (VAT) reduction for EV products containing more than 40% local content (TKDN).
PT VKTR Teknologi Mobilitas Tbk. (Read: Vector) is the pioneer of electric vehicle ecosystem in the heavy mobility segment in Indonesia. VKTR is committed to accelerate sustainable mobility Indonesia through manufacturing and strategic partnerships with the best-in class electric vehicle manufacturers in its category.
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