TISCO Revenue Jumps in Q1 2024, Posts Profit of VND6 Billion
Thai Nguyen Iron and Steel Corporation (TISCO, code TIS, UPCoM) has just announced its financial report for Q1/2024. Accordingly, the company’s net revenue reached VND2,182.6 billion, an 11% decrease compared to the same period last year. After deducting the cost of goods sold, the gross profit was VND105 billion, an increase of 89% compared to Q1/2023.
During the period, financial revenue increased, while expenses decreased, and sales expenses slightly decreased. In particular, management expenses were 2.5 times higher than the same period last year, at VND55 billion, due to the absence of provision reversals as in Q1/2023.
As a result, TISCO reported a net profit of nearly VND6 billion, while in the same period last year, it incurred a loss of over VND19 billion. This is the second consecutive quarter that the company has returned to profit, after a series of 5 consecutive quarters of losses.
Source: Tisco
In 2024, TISCO set a revenue target of nearly VND13,000 billion and a pre-tax profit of VND15 billion. With a pre-tax profit of VND7 billion in the first 3 months of the year, TISCO has achieved 50% of its pre-tax profit target for 2024.
In the consolidated financial report for Q1/2024, TISCO still recorded an amount of VND6,700 billion in construction in progress for the Thai Nguyen Iron and Steel 2 project, of which nearly VND3,500 billion is capitalized interest. This project once carried a lot of expectations but has been “shelved” for the past 15 years.
Returning to the 2024 business plan, TISCO said that it will spend VND653 billion on transitional projects and some new projects in the field of mineral exploitation to meet the company’s production materials needs.
Source: Tisco
In addition, Thai Nguyen Iron and Steel Corporation stated that the company still has VND2,708.1 billion in overdue debt for the project, which has not yet been paid. Meanwhile, the retained profit after tax as of the end of 2023 in the consolidated financial statements was only nearly VND95 billion. Therefore, the company is not eligible to pay dividends.
On the HR side, the upcoming 2024 Annual General Meeting of Shareholders will consider dismissing 7 members of the Board of Directors and 5 members of the Supervisory Board of the 2019-2024 term. The list of replacement candidates has not yet been announced.
