JR Reports a 62% Growth in 3Q21 Earnings on Higher Revenue from Megaprojects

J.R.W. Utility Public Company Limited (JR) has announced its 3Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

JR reported a net profit of 54.77 million baht in 3Q21, increased 62.27% from a net profit of 33.76 million baht in 3Q20. The increase of net profit from the same period last year was contributed by the surge of the company’s revenue. The leaping growth was after the company undertook a megaproject – transformation of overhead line to underground line along the project route of Yellow Line and Pink Line and such figures correlated to the increased gross profit margin.

For the three-month period ended 30 September 2021, The company had revenue from sales decreased from the same period of the previous year amounted to 143.36 million baht. Accordingly, sales revenue depends on customers’ budgets and demand at a particular time.

The company generated revenue from service business 491.61 million baht, representing 100 percent of sales and service revenue. Revenue from turnkey system installation service has increased compared to the same period of the previous year at 170.48 million baht or 53.09% growth contributed by revenue recognition from the transformation of overhead line to underground line along the Pink and Yellow Line- the mega project with high value.

The cost of sales for the three-month period ended 30 September 2021 the whole amount was reduced due to no sales revenue in this quarter. The company reported the cost of services for the three-month period ended 30 September 2021 at 406.37 million baht or 17.34% of the gross profit margin.

The gross profit margin in the service business rose from the same period of the previous year by 15.82%. Such escalation contributed by increasing the gross profit margin of the work undertaken in the same period last year and a higher proportion of turnkey installation services. The revenue recognition surge. Meanwhile, the reduced project management cost ratio added up the gross profit margin. The primary costs included tools, materials, and equipment, sub -contracting cost, project management fee, operating expenditure, and fees.