Hemaraj Land reports dip in income
Industry estate firm, Hemaraj Land and Development, will announce total net income of Bt664.0 million in the first quarter of this year, a decrease of 36 per cent compared with the same period of the previous year.
Net profit decreased due mainly to lower land transfers compared to the historical peak in the first quarter of last year as a result of soft land sales from political disruptions in 2014 and also from a lower share of profit from investments in associates as a result the planned maintenance shutdown of GHECO-One in the first quarter of this year, said David Nardone, the company’s president and CEO.
In addition, there was no revenue from sales of condominium in the first quarter of this year as condominium units at “The Park Chidlom” have been almost sold out. However, revenue from utilities services and revenue from industrial properties for rent and commercial properties for rent continue to improve.
As a result, Hemaraj has a reported net profit |margin of 44.2 per cent, practically unchanged from |that of in the first quarter of last year, despite lower |revenues.
The company the first 3 months of 2015 with reasonable operating and financial results in the content of the overall Thailand economic environment. Industrial Estate revenue was lower by 58 per cent, as revenue is based on industrial land transfers.
This was impacted from a lower revenue backlog reflecting weak 2014 automotive production and overall investment conditions. However, Rental Property revenue increased 13 per cent from the same period of 2014 and across all segments. Revenue from industrial estate utilities (non power) also increased by 3 per cent from the same period of 2014 due to modest volume growth, he said.
Meanwhile, in the first quarter of this year, Hemaraj Total Revenue was Bt1.54 billion compared with Bt2.8 billion for the same period of 2014, representinga 45 per cent decrease.
