PT VKTR Teknologi Mobilitas Tbk (VKTR) today announced its consolidated financial report for the 1Q24 period. In the quarter, VKTR focused on increasing margins driven primarily by good cost control in the spare parts manufacturing business segment and sales in the EV business segment after previously being zero in 1Q23.

The company’s consolidated financial report recorded net income of IDR205 billion during 1Q24, down from IDR292 billion in 1Q23. The decline in revenue was mainly caused by a decline in sales from the spare parts manufacturing business in line with the decline in national vehicle sales in the quarter. On the other hand, VKTR recorded sales in the EV sales segment in 1Q24, in contrast to the 1Q23 period which was still nil. From the balance sheet side, there are not many changes. Total assets increased by 0.5% to IDR1,677 billion from IDR1,668 billion. Meanwhile, total liabilities decreased by 3% to IDR505 billion in 1Q24 from IDR520 billion in FY23.

The Company’s consolidated gross profit margin in 1Q24 increased to 26.1% from 19.1% in 1Q23. Meanwhile, the company’s EBITDA margin increased to 15.7% in 1Q24 from 11.9% in 1Q23. The increase in margin was mainly due to cost control in the auto parts manufacturing business led by a decrease in COGS (Cost of Goods Sold).

From the EV sales segment, throughout 1Q24, the Company further strengthened the expansion of its B2B (Business to Business) client portfolio with a vision towards sustainability, which was previously only B2G (Business to Government). This is reflected in the continued sales of electric buses to private companies throughout the quarter of this year. The Company has explored several collaborations in 1Q24 to encourage the adoption and sales of EVs in Indonesia, such as establishing a JV (Joint Venture) with one of the leading vehicle distributor companies in Indonesia to maximize sales channels; as well as signing a strategic collaboration with one of the largest state-owned companies in Indonesia for green financing solutions through the e-MaaS (electric-Mobility as a Service) scheme.

Several factors contributed to the decline in our sales in line with the decline in the national automotive industry, such as the Presidential General Election which occurred in 1Q24 which caused many parties to take a wait and see approach. In addition, uncertainty in global macro conditions amidst heated geopolitical conditions in the Middle East which has an impact on the weakening of the rupiah has led to weakening consumer purchasing power.

However, amidst challenging external conditions, the spare parts manufacturing segment was able to increase margins thanks to good financial control. In terms of EVs, we remain consistent in completing the progress of building the First CKD (Completely Knock Down) Based Commercial Electric Vehicle Facility in Indonesia in Magelang so that it runs according to the construction plan which is targeted for completion in September 2024.

“Being a pioneer in the Commercial EV segment in Indonesia is full of challenges. Therefore, VKTR continues to strive to provide solutions to EV industry problems from manufacturing to financing to accelerate EV adoption in Indonesia. VKTR’s current focus is to ensure the progress of the construction of our CKD Facility in Magelang runs on time. “This facility will become a center for assembling commercial electric vehicles with a minimum TKDN of 40%, thus having an impact on price affordability for consumers and increasing margins for companies,” said Gilarsi W. Setijono, President Director of VKTR.

The company continues to support parties who want to realize their Net Zero Emissions targets. From a total of 60 VKTR buses that have operated with a distance of 5,432,358 Km (as of April 15 2024), our internal estimate is that the amount of carbon that has been successfully reduced is 5,200 tons of CO2 (assuming a conversion factor of 2.68 kg CO2/liter, and consumption diesel 2.8 km/liter). To absorb 5,200 tonnes of CO2, approximately 5,627 hectares of vegetation is needed to absorb 5,200 tonnes of CO2, or the equivalent of 237 thousand trees that must be planted to absorb CO2 emissions (assuming 1 adult tree absorbs 22 kg of CO2 for 20 years).

About PT VKTR Teknologi Mobilitas Tbk: PT VKTR Teknologi Mobilitas Tbk. (VKTR – pronounced “Vector”) – is a pioneer in the electrification of the commercial vehicle segment in Indonesia. VKTR is committed to accelerating sustainable mobility in Indonesia through manufacturing and strategic partnerships with best-in-class electric vehicle manufacturers.