Aug 1, 2010

Delta Dunia & United Tractors margin

PT Delta Dunia Makmur Tbk (DOID), parent company of Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), posted 1H 2010's net revenue of Rp2.70 trillion, 3 times smaller than net revenue of mining contracting division of PT United Tractors Tbk (UNTR).
United Tractors booked Rp8.19 trillion of net revenue from mining contracting business in 1H 2010 (19% increase compared to the same period last year), while in total, UNTR posted a consolidated net revenue of Rp18.08 trillion in 1H 2010, a 30.26% increase compared to the same period last year of Rp13.88 trillion. 
Delta Dunia booked  Rp461.86 billion of operating profit in 1H 2010, while United Tractors posted a consolidated operating profit of Rp2.65 trillion in 1H 2010, a slight increase of 2.71% from a year earlier of Rp2.58 trillion.
Delta Dunia's operating margin stood at 17.09% in 1H 2010, while United Tractors' operating margin dropped 21% from 18.59% in 1H 2009 to 14.66% on the back of a higher cost of goods sold by 38.18%.
United Tractors' earning also made a slight increase by 1.07% from Rp1.87 trillion or Rp563 per share in 1H 2009 to Rp1.89 trillion or Rp567 per share in 1H 2010. Delta Dunia booked Rp206.18 billion of net profit in 1H 2010.
Considering operating margin of both companies, United Tractors should strive to keep lower its COGS, otherwise it would erode operating profit and earning.
Delta Dunia posted a 4.46% increase in coal production from 15.7 million tons in 1H 2009 to 16.4 million tons in 1H 2010, while United Tractors could make a 24.42% growth in coal production from 30.3 million tons in 1H 2009 to 37.7 million tons in 1H 2010.
   
Disclosure: No position at the stock mentioned above. 

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