State-Controlled Wijaya Karya Posts 29.20 Percent Increase in Net Profit in 2012
PT Wijaya Karya Tbk, a state-controlled engineering and construction company that is better known to the general public as Wika, posted net profit of IDR 505.12 billion (US $52.07 million) in 2012, a 29.20 percent increase compared to the previous year. Net profit per share rose from IDR 60,59 to IDR 76,01 per share. According to the financial report that was released today, the growth in net profit was mainly due to a 26.79 percent increase in sales.
Net income margin increased slightly from 5.05 percent to 5.15 percent.
Wika's businesses include civil engineering, building construction, and the construction of industrial plants as well as energy facilities. The company is majority-owned by the Indonesian government (65.91 percent) and, as such, benefits from the government's Masterplan for Acceleration and Expansion of Indonesia's Economic Development (MP3EI), an ambitious government plan that runs to 2025 and foresees large investments in the country's infrastructure. About 70 percent of contracts won by the company are from the government or state-owned enterprises.
Wika's shares have risen 15.03 percent this year.