GT CAPITAL INCOME FOR Q2 JUMPS | Marvin Germo

GT CAPITAL INCOME FOR Q2 JUMPS

By: Marvin Germo | August 16, 2019

Auto Sales Went Up

It has been a nice second quarter for GT Capital Holdings, Inc. as it generated an attributable profit that is 15% higher from April to June following higher sales from its auto unit and higher contributions from its associates. The firm disclosed that the net income attributable to the parent stood at P3.92 billion during the second quarter while the revenues saw a 3% growth to P57.26 billion. The company attributed the increase to the increase in revenues from its automotive operations, joint ventures, the income of associates, and other income. If we take a look at its 6-month performance, the net income reached P7.34 billion or 3% higher while the revenues were at P104.27 billion, 3% up as well.

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Toyota Motor Philippines Corporation (TMP)

One of GT Capital’s units is Toyota Motor Philippines Corporation (TMP). This unit’s revenues for the first 6 months of the year was at P76.1 billion with a total sale of 73,454 units of retail cars. It was considered almost the same as the same period last year. In spite of it, the company noted that Toyota is still the leading brand in the automotive industry in the Philippines with a 37.6% market share as of the end of June. During the second quarter, TMP’s revenues were up by 25% to P42 billion because of the improvement in the sales of retail car units despite the wholesale volume decline. The earnings reached P2.6 billion or 44% higher in the second quarter because of this.

GT Capital’s Other Units

Apart from Toyota, GT Capital also saw its other units contributing to its Q2 performance. Metrobank had an 18% growth to P13 billion in earnings and this is because of the jump in loan and margin expansion, conservative operational expenditures, and higher fee-based income. Federal Land saw its net income increase by 10% to P572 million due to the 12% hike in revenues to P5.9 billion. The reservation sales were also up by 52% to P8.9 billion from the launching of different projects in 2018. Its infrastructure unit, Metro Pacific Investments Corporation reported a 1% increase in consolidated core profit to P8.7 billion, triggered by the growth of Maynilad Water Services, Inc. and Manila Electric Co.

Philippine Economy

The fact that the inflation rate is continuously easing down, it has a great effect on the performance of GT Capital together with the declining interest rates and improving customer confidence. The growth of GT Capital and its component companies could never happen if it’s not for the progressing Philippine economy. The company hopes that the rest of 2019 is positive as macroeconomic indicators improve. For investors looking for a company to invest it, you might want to consider GT Capital as a great option.

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