PT Wijaya Karya (Persero) Tbk's (WIKA) efforts to improve efficiency and profitability amid various challenges in the infrastructure sector are starting to bear fruit, this is reflected in the third quarter 2024 financial report. As of September 30, 2024, WIKA managed to book revenue of Rp12.55 trillion, with a burn rate capacity of 34.3% of the Company's ongoing contracts. The main contribution to revenue came from the infrastructure and building, industry, EPC and realty property segments. WIKA also managed to book a gross profit of Rp1.06 trillion, with a Gross Profit Margin (GPM) of 8.4%, an increase from the same period the previous year of 8.1%.
This shows WIKA's project execution capabilities that are increasingly excelling, especially in the main business lines that are the Company's core operations, such as infrastructure & buildings and EPCC which increased by an average of 0.6% from the previous year.
In addition to posting an increase in gross profit margin, WIKA also recorded an increase in operating profit of Rp839.75 billion or an increase of 55.3% compared to the same period the previous year. Thus the Company's Operating Profit Margin (OPM) managed to increase with the same increase year on year.
In line with the Company's steps to continue accelerating financial restructuring efforts, from the balance sheet side, WIKA managed to improve its accounts receivable collectability by 30.4% to Rp6.61 trillion from Rp9.50 trillion as of September 2023. In addition, WIKA also continues to make maximum efforts to make payments to partners, so that the Company's trade payables are recorded to have decreased by 50.7% in the same period the previous year.
Meanwhile, the Company's cash flow from operating activities also showed an improvement of 86.9% from -Rp1.67 trillion to -Rp218.94 billion in the third quarter of 2024. This improvement is a result of the Company's transformation efforts that focus on improving liquidity as a financial restructuring effort.
“Management believes that by improving governance, strengthening risk management, project execution excellence, focusing on liquidity and managing a good working capital structure, the Company will be able to maintain its competitive value in the future,” said WIKA President Director, Agung Budi Waskito (BW).
This improved liquidity condition is reflected in the Company's current ratio which has increased to 191.8% with solvency ratios such as gearing ratio and Debt to Equity Ratio (DER) which have also decreased to 2.18 times and 3.12 times from the previous position of 3.10 times and 5.07 times. Agung BW expressed his appreciation to all stakeholders who have supported the Company's restructuring efforts, both to financial institutions for the completion of the financial restructuring process and the Government which has strengthened WIKA's capital structure.