JAKARTA - In the second quarter of 2021, PT Timah Tbk (TINS) managed to record an operating profit of IDR 630 billion (Quarter II of 2020: minus IDR 227 billion), and a profit for the year of IDR 270 billion (Quarter II of 2020: minus IDR 390 billion). EBITDA shot to IDR 1.04 trillion (Q2 2020: IDR 348 billion). Operating cash flow increased significantly to IDR 2.58 trillion (Q2 2020: IDR 620 billion). In the same period, TINS' revenue fell 27% from IDR8.03 trillion to IDR5.87 trillion.
The increase in tin prices due to reduced supply in the market, plus measurable efficiency are factors that increase the Company's margins and profits.
TINS has a healthy profitability ratio, as can be seen from the GPM (Gross Profit Margin) ratio of 19% (Quarter II of 2020: 3%) and the ratio of NPM (Net Profit Margin) of 5% (Quarter II of 2020: minus 5%). The DER ratio (Debt to Equity Ratio) in the second quarter of 2021 of 103% managed to shrink compared to the end of 2020 period of 142%. Short-term bank loans were successfully reduced from IDR3.8 trillion at the end of 2020 to IDR2.2 trillion.
The subsidiary's performance continues to grow and is expected to be able to support TINS's performance achievement until the end of 2021. "The increase in metal demand as the Covid-19 pandemic subsides has led to stable metal prices which has an impact on the development of the downstream tin industry, which is expected to be one of the motors to boost TINS' performance in Indonesia. this year of recovery,” said Wibisono as TINS Director of Finance and Risk Management. (LM)