Bamboo Capital subsidiary Tracodi reports $17.6 mln profit in 9 months

Tracodi, a subsidiary of the Bamboo Capital Group, has reported after-tax profits of VND436.9 billion ($17.6 million) in the first nine months of the year, up 56% year-on-year.

In doing so, it has fulfilled 86.1% of the year's profit plan.

Tracodi (Transport and Industry Development Investment JSC) earned net revenues of VND1,902 billion ($76.58 million) in the period, down 9% compared to the same period last year.

In the remaining three months, with favorable conditions for ongoing projects, this year the company will exceed the profit plan approved at the general shareholders’ meeting, the company’s board of directors said.

In the third quarter of 2022, Tracodi recorded net revenues of VND683 billion ($27.5 million), up 84.5% year-on-year. Of this, revenue from construction segment increased by 83.42%, equivalent to VND220 billion ($8.86 million), and revenue from stone mining rose by 88%, equivalent to VND91.55 billion ($3.69 million).

At the end of Q3, Tracodi had total assets and equity of VND9,064 billion ($364.96 million) and VND3,478 billion ($140.04 million), up 57% and 2.7 times compared to the beginning of the year, respectively.

In 2022, the company aims at consolidated net revenues and after-tax profits of VND4,431 billion ($178.41 million) and VND 507.4 billion ($20.43 million), up 42.39% and 51%, respectively. It plans to pay out a dividend of 10% or more.

From now until the end of the year, companies like Tracodi will benefit from the Government's policy of promoting disbursement of public investment.

The Government has shown its determination to fulfil the target of disbursing 100% of public investment capital for the year, considering the disbursement a key task in promoting economic growth.

Minister of Planning and Investment Nguyen Chi Dung has stressed the need to develop a specific disbursement plan for each project and closely inspect and supervise it. He said disbursement has to be accelerated while maintaining project quality and efficiency.

In addition, in order to speed up disbursement, the Government will also apply a mechanism to reward contractors for progressing ahead of schedule.

It will also establish a national steering committee on transport infrastructure projects.

A current advantage for public investment is that the prices of many construction materials such as iron and steel have begun to fall.

According to leading broker VNDirect, after peaking in April, domestic steel prices have fallen 17.2% to 3.9% lower than in early 2022. This factor will help improve profit margins of construction contractors and speed up the progress of several public investment projects.

Meanwhile, analysts with Bao Viet Securities JSC have forecast that in the coming months, public investment disbursement will be accelerated. They believe that public investment disbursement will achieve 100% of this year’s plan.