Taxi major Vinasun secures 5-fold profit increase in Q1

Vinasun Corporation, a leading taxi operator in Vietnam, posted an after-tax profit of VND53 billion ($2.26 million) in the first quarter of this year, 5 times year-on-year and equal to one-fourth of the year's plan.

The company earned revenue of VND325 billion ($13.84 million), two-fold compared to the same period last year, according to its Q1 consolidated financial statements.

As of the end of March, Vinasun's total assets were approximately VND1,900 billion (almost $81 million), of which bank deposits hit nearly VND600 billion ($25.54 million).

Vinasun Deputy CEO Tran Anh Minh said his firm's financial indicators increased sharply because "the Vietnamese economy has recovered and the ratio of our cars in use is always 100%."

Vinasun sets a revenue target of VND1,345 billion ($57.26 million) this year, up 23% year-on-year and post-tax profit of VND200 billion ($8.5 million) or more, the highest level since 2017. The company plans to invest in 700 new cars, liquidate and sell on deferred payment to drivers 400 vehicles for franchise operations. By the end of the year, the fleet is estimated to exceed 3,500 cars.

In 2022, Vinasun made a post-tax profit of VND185.35 billion ($7.9 million), versus a loss of VND277.17 billion ($11.8 million) in 2021.

The firm posted net revenue of VND1,089 billion ($46.44 million), up 124.7% year-on-year, according to its latest financial report.

As the business earned a profit in 2022, it avoided the risks of delisting from the stock exchange due to losses over three consecutive years in line with the regulation.

Vinasun, listed on the Ho Chi Minh Stock Exchange as VNS, was once the taxi operator with the biggest market share in HCMC.

VNS shares price hit VND18,250 each during the morning closing session on April 20.