Pruksa Real Estate PCL boasts the operating result in the 1st quarter of 2014 which shows a solid rise despite the economic doldrums. Pruksa records the total revenue of Bt8.055 billion and net profit of Bt1.065 billion, a rise by 27 per cent and 38 per cent respectively, compared to the performances in the 1st quarter of 2013.
Mr. Thongma Vijitpongpun, Chairman and Chief Executive Officer, Pruksa Real Estate PCL, revealed the operating results in the 1st quarter of 2014, ”Pruksa has steadily enjoyed business growth, achieving a total of Bt8.055 billion in total revenue, a rise by 27 per cent compared to Bt6.34 billion in the same period of 2013. Net profit rose to Bt1.065 billion, up by 38 per cent compared to Bt773 million in the same period a year before. A majority of revenue was generated from the townhouse products, accounting for 64 per cent, single-detached house, 24 per cent, condominium, 10 per cent, and overseas business, 2 per cent.”
“The success was attributed to the fact that the company has focused on developing horizontal project to target the customers with real demand. Therefore, the company managed to reach the target and enjoy higher revenue despite the current economic situation which is not conductive for the customers to make a decision. Moreover, the company has constantly developed the construction innovation in order to deliver quality products to the customers and ensure the customer satisfaction. As a result, the business cycle time of a horizontal project development reduces from 146 days to 112 days, enabling the company to realize income faster. Pruksa has also better managed the cost to appropriately maintain the cost level. The company has thus recorded higher net profit in the 1st quarter,” Mr. Thongma said.
Mr. Lersak Chuladesa, Vice Chairman and Executive Director, Pruksa Real Estate PCL, disclosed the sales turnover in the 1st quarter, “The economic situation and domestic political crisis from late last year to the 1st quarter of this year affects the overall real estate market. The customers have slowed down their decision to wait and see the situation. Nonetheless, the customers’ confidence starts to come back in March, the last month of the 1st quarter. Overall, the company managed to launch 18 projects in the 1st quarter with a total value of Bt14.121 billion, consisting of 6 townhouse projects, 7 detached home projects and 5 condominium projects. In March alone, the company launched 11 projects with a total value of Bt10.336 billion. Due to sales and income in March which doubled from January and February, Pruksa recorded the revenue in the 1st quarter of 2014 totaling Bt8.194 billion, higher than the target or rising by 9 per cent compared to the sales totaling Bt7.515 billion in the 4th quarter of 2013.
In addition, there are 173 active projects totaling a combined Bt66.327 billion. Eighty per cent are horizontal projects. These projects will contribute to an expansion of sales of horizontal projects in the future. Although the overall economy still slows down and it is difficult to predict how long the situation will last, Pruksa still keeps the sales target of 2014 unchanged at between Bt41 billion to Bt45 billion.”