Feb 21, 2011

TOWR FY10 net income falls 83.03%

Telecommunication tower provider PT Sarana Menara Nusantara Tbk (TOWR), Djarum Group affiliated, suffered a 83.03% drop in net income last year as higher financial charges as well as a steep plunge of foreign exchange gain.
In 2010's financial statement submitted to Indonesia Stock Exchange (IDX) today, TOWR's net income reached Rp100.01 billion or Rp99 per share last year from Rp589.49 billion or Rp601 per share in the previous year.
Financial charges surged 52.46% to Rp787.94 billion from Rp516.82 billion, while foreign exchange gain shrank 65% to Rp186.54 billion from Rp533.01 billion.
At the operational line, Sarana Menara was still in positive. Operating profit increased 16.19% to Rp720.02 billion from Rp619.64 billion. However, operating margin fell to 53.10% from 57.24% as cost of goods sold (COGS) elevated.
Gross profit climbed 22.69% to Rp881.36 billion from Rp718.39 billion. COGS enlarged 31.84% to Rp66.99 billion from Rp50.81 billion.Sarana Menara posted Rp1.36 trillion revenue, a 25.92% from Rp1.08 trillion.
Huge debt
Sarana Menara recorded huge debt. It posted Rp4.66 trillion of total bank loan. About Rp328.09 billion will mature in 1 year.
In contrast, the company's equity last year was Rp1.23 trillion, reflecting debt to equity ratio of 3.79x, which is so high.
Despite a massive debt, Sarana Menara's cash and cash equivalent was so tiny. It booked to Rp354.58 billion of cash from Rp473.84 billion.
Sarana Menara, parent of PT Profesional Telekomunikasi Indonesia (Protelindo) and affiliated of Djarum Group as well, was sold by its controlling shareholders PT Tricipta Mandhala Gemilang  (TMG) and PT Caturguwiratna Sumapala (CGS) via a private placement in mid December, arranged by Credit Suisse and CLSA. By selling the stake, TMG and CGS bagged Rp4.7 trillion cash.
Martin Basuki Hartono is President Commissioner at Sarana Menara. Martin Basuki is son of Robert Budi Hartono (first generation of Djarum family with  Michael Bambang Hartono). Martin Basuki has two brothers Victor Hartono and Arman Budi Hartono.

Disclosure: No position at the stock mentioned above.

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