Coteccons reports highest profit in 10 quarters

By Tat Dat   October 31, 2023 | 11:25 pm PT
Coteccons reports highest profit in 10 quarters
A Coteccons construction project in Hanoi. Photo courtesy of the company
Leading construction company Coteccons reported after-tax profits of VND67 billion (US$2.8 million) for the third quarter, its highest in the last 10 quarters.

It had made a loss of VND3.5 billion in the same period last year.

Revenues were up 33% year-on-year at VND4.1 trillion, and its gross profit margin increased to 2.43% as gross profits tripled to VND100 billion.

The company recently changed its fiscal year to July-June and so it has released its consolidated financial statements for the first quarter of fiscal 2023-24, equivalent to the third quarter of 2023 before the change.

The company’s management said the policy of provisioning for risky projects it adopted in previous years mitigated the impacts of higher labor costs and construction material prices and unfavorable macro factors during the quarter.

Coteccons targets revenues of VND17.8 trillion and after-tax profits of VND274 billion for this year.

Its results have gone against the general trend in the construction industry, in which many firms have not got new contracts for a long time and had difficulty in collecting receivables due to the frozen real estate market.

Coteccons wants to expand into infrastructure construction, social housing and renewable energy, and enter foreign markets.

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