Astra International drives Jardine Cycle & Carriage's improved Q1 performance

Astra reported an 84% increase in its earnings. 

Jardine Cycle & Carriage (Jardine C&C), investment holding firm, posted an improved performance in the first quarter of 2022, on a yearly basis, which stemmed from higher contributions from Indonesian-based Astra International and other strategic interests.

Astra International, which is owned by Jardine C&C at 50.1%, logged an 84% increase in earnings driven by domestic economic recovery and higher commodity prices. 

Its increased car sales benefited from luxury sales tax incentives, and Astra’s financial services division recorded higher lending volumes. 

The heavy equipment and mining division saw a strong performance, with increased heavy equipment sales and higher coal selling prices. Astra’s agribusiness division recorded higher crude palm oil prices.

For Direct Motor Interests, it saw a relatively stable performance overall. Tunas Ridean delivered improved profits, reporting higher contributions from its automotive, financial services as well as vehicle rental operations. 

The Cycle & Carriage Bintang in Malaysia also recorded improved performance, with the continuation of the government sales tax reduction and the implementation of cost control initiatives. 

Other Strategic Interests continued to perform well, as THACO posted higher automotive sales and margins mainly due to an improved sales mix, backed by a reduction in registration fees for locally-assembled vehicles. But Siam City Cement was affected by high energy costs and the devaluation of the Sri Lanka rupee.

However, Cycle & Carriage in Singapore, posted lower sales under challenging trading conditions due to certificate of entitlement price hike and stock supply shortages.