SINGAPORE (Apr 26): Jardine Cycle & Carriage (JC&C), which is 75%-owned by the Jardine Matheson Group, announced first quarter earnings rose 131% to US$312.4 million ($422 million) in 1Q19 from US$135.3 million in 1Q18.
This came on the back of a 2% increase in revenue to US$4.7 billion from US$4.6 billion in the previous year, primarily due to higher revenue in most of Astra’s businesses, in particular financial services and heavy equipment, mining, construction and energy.
Astra contributed US$179 million to the group’s total underlying profit, an increase of 1% y-o-y. The underlying profit from the group’s direct motor interests was 6% higher at US$28 million, but no contribution was recorded from its other strategic interests in the period, compared to dividends of US$10 million received from Vinamilk in the comparable period last year.
Astra reported a net profit equivalent to INR 5,215 billion ($500.8 million), 5% higher than the previous year, mainly due to increased contributions from its financial services and heavy equipment, mining, construction and energy businesses, which more than offset lower contributions from its automotive business and agribusiness.
While Astra’s earnings increased by 5% in INR the increase in the contribution to the group was lower due to a weaker local currency this year compared with the first quarter of 2018.
As the group managed to pare down net operating costs by 4% y-o-y to US$4.1 billion, operating profit saw a 51% jump to US$655.3 million from US$434.1 million a year ago.
Financing charges increased by 77% y-o-y to US$87.2 million, while net financing charges grew by 140% y-o-y to US$64.7 million.
As at end-March, the group’s cash and cash equivalents stood at US$2.3 billion.
Ben Keswick, chairman of JC&C says, “For the rest of the year, Astra is expected to continue to benefit from higher contributions from its financial services and mining contracting businesses as well as its newly acquired gold mining business, but concerns remain over lacklustre demand and intense competition in the car market and weaker commodity prices. The group’s non-Astra interests are expected to show slower growth.”
Shares in JC&C closed at $36.33 on Friday.
