Major industrial park developer Idico records sharp dip in Q3 profit

Idico Corporation's Jan-Sept revenue dropped 29% year-on-year to nearly VND5 trillion ($203.41 million) and net profit declined 60% to VND842 billion ($34.26 million).

The industrial park and urban area developer, listed on the Hanoi Stock Exchange as IDC, attributed the fall in revenue to a significant drop in the industrial park infrastructure rental segment, while the electricity and road toll segments remained stable.

Revenue from industrial park infrastructure rentals fell 45% year-on-year to VND2.23 trillion ($90.72 million) in the nine-month period. Revenue from the electricity business reached VND2.07 trillion ($84.24 million), while that from road tolls was VND327 billion ($13.31 million), both down 4-5%.

Interest expenses rose from VND98 billion ($3.98 million) to VND144 billion ($5.86 million), while selling expenses and management expenses increased 44% and 6%, respectively, leading to the significant drop in profit.

In the first nine months, the group only achieved 60% and 51% of its year revenue and profit targets.

The company reduced its short-term debt from VND748 billion to VND481 billion ($19.57 million), while increasing its long-term debt from VND2.72 trillion to VND2.83 trillion ($115.3 million), for a total debt of VND3.31 trillion ($134.88 million), equivalent to 59% of its equity.

The company's consolidated Q3 revenue reached VND1.44 trillion ($58.74 million) and post-tax profit was VND161 billion ($6.55 million), down 30% and 61% year-on-year, respectively.

Idico saw its financial expenses rise from VND31 billion ($1.26 million) to VND43 billion ($1.75 million) in the quarter.

The corporation has 22 subsidiaries and branches nationwide, employing more than 5,000 people. Its business lines include development of industrial parks, hydropower plants, road transport infrastructure, and urban areas and housing.