BSD, Property Developer Owned By Conglomerate Eka Tjipta Widjaja Earns Revenue Of Rp5.17 Trillion And Profit Of Rp930.78 Billion

Illustration. (Photo: Doc. Sinar Mas Land)

JAKARTA - Property developer PT Bumi Serpong Damai Tbk (BSDE) or BSD posted an increase in performance in the third quarter of 2021. The profit and revenue of the company owned by the late conglomerate Eka Tjipta Widjaja grew significantly in the first nine months of 2021.

BSD's net profit shot 154.19 percent in the first nine months of 2021 to Rp930.78 billion. The surge in profit growth was driven by the sales performance of property units owned by BSDE.

Until the third quarter of 2021, BSDE posted revenue of Rp5.17 trillion, an increase of 20.74 percent year on year (yoy). Sales of land, buildings, and strata title are the segments with the largest contribution to BSDE's total revenue, which is 80 percent.

This segment recorded sales of Rp4.14 trillion, aka a growth of 20.32 percent compared to the same period in 2020 which was Rp3.44 trillion.

"Consumer demand remains high for the property units we offer, be it residential, commercial, or land," said BSDE Director Hermawan Wijaya in a written statement, quoted Tuesday, January 4.

Then, the segment with the second-largest contribution is the rental segment with an income of Rp524.05 billion or the equivalent of 10 percent. Followed by the construction segment of Rp266.96 billion so that it has a share of 5.17 percent of BSDE's total revenue.

In line with the increase in revenue, BSDE's cost of goods sold until the third quarter of 2021 increased 47.26 percent yoy to Rp1.85 trillion from Rp1.26 trillion. As a result, BSDE's gross profit grew 9.69 percent to Rp3.31 trillion.

Management's policy of monitoring and cost efficiency also had an impact on the growth of operating expenses, which only rose 0.43 percent yoy to Rp1.70 trillion. This makes operating profit increase by 21.53 percent yoy to Rp1.61 trillion, compared to last year's record of Rp1.33 trillion.

Seeing this performance, management believes that BSDE can continue positive growth until the end of 2021. To support future growth, BSDE currently has secured a land bank of 3,752 hectares.

The largest contribution to land reserves came from BSD City with an area of 2,128 hectares, Grand Wisata (Bekasi) with an area of 444 hectares, and Benowo (Surabaya) with 435 hectares. According to Hermawan, the land reserves owned by BSDE are spread out in strategic locations in big cities in Indonesia, such as Greater Jakarta, Surabaya, Makassar, Palembang, Balikpapan, and Samarinda.

In addition to unprocessed raw land, BSDE also has ready-to-sell real estate inventory worth Rp3.43 trillion and buildings under construction worth Rp2.37 trillion.

"BSDE also has land under development worth Rp6.12 trillion. This is a catalyst for our sustainable growth in the future," said Hermawan.

In addition to having a solid sales performance, the position of cash and cash equivalents as of the third quarter of 2021 was recorded at Rp7.66 trillion and total assets reached Rp60.10 trillion. That way, BSDE has enough room to strengthen capital to develop new projects if needed.