JAKARTA. The net profit of PT Waskita Karya (Persero) Tbk (WSKT) net profit fell by 76.3% year on year (YoY) to Rp 938 billion in 2019, far below expectations.
Edbert Surya and Adrian Joezer, analysts of Mandiri Sekuritas, said that the weak performance of WSKT in 2019 was caused by a decrease in the company's revenue by 35.7% YoY. "On the other hand, the interest expense borne by the company rose by 47.2% YoY," they explained in their research report today.
Even so, WSKT still recorded a substantial cash flow of Rp 9 trillion in 2019. "This came from several turnkey payments, so that the total cash inflow during 2019 reached Rp 22 trillion," Surya and Joezer said.
Looking ahead, WSKT's performance is expected to improve, since the Indonesian government will continue the development of infrastructures. (KR/AR)