Train passengers increase sharply, two railway transport companies report profits

Saigon Railway Transport Joint Stock Company said that in the fourth quarter of 2023, the company lost 69.8 billion VND, but for the whole year, it made a profit of 10.7 billion VND.

Explaining, Saigon Railway Transport Joint Stock Company said that in 2023, the travel demand of domestic and foreign tourists will increase, especially during the Lunar New Year and summer 2023.

Railway transport enterprises reported profits of more than 10 billion VND (Photo: illustration).

In the fourth quarter of 2023 alone, the company's total revenue from passenger, cargo, baggage transportation, financial revenue and other income reached VND 336.2 billion, but total expenses amounted to VND 406.1 billion, leading to a loss of VND 69.8 billion in the fourth quarter.

This is due to the characteristics of the railway, where revenue is often concentrated in peak months such as summer and Tet, while expenses are mainly concentrated in the low months at the end of the year. Some large expenses are mainly concentrated in the fourth quarter such as: Provision for inventory price reduction, provision for bad debts, provision for salary fund, repair costs, and vehicle refurbishment for the Giap Thin Tet holiday.

On the other hand, the revenue growth rate in 2023 compared to 2022 is 8.4%, while the company has taken cost control measures, and the Ministry of Finance has supported a reduction in railway infrastructure usage fees in the last 6 months of the year... Therefore, the cost growth rate in 2023 compared to 2022 is only 7.8%, lower than the revenue growth rate, so the profit reached 10.7 billion VND.

As for Hanoi Railway Transport Joint Stock Company, this enterprise also reported a profit of more than 14 billion VND, while similarly, Saigon Railway Transport Joint Stock Company lost more than 83.7 billion VND in the fourth quarter of 2023. Due to low revenue and income in the fourth quarter but high costs, focusing on the following items: Carriage repair; labor; traffic operations...

In terms of overall production and business results in 2023, the unit's total revenue and other income increased by more than VND 133.7 billion compared to 2022; after-tax profit in 2023 was more than VND 14 billion, while in 2022 this figure was only nearly VND 5.8 billion.

According to Hanoi Railway Transport Joint Stock Company, this result is due to the growth rate of revenue and income in 2023 being 5.67%, higher than the growth rate of production and business operating costs (5.33%), so the profit after tax in 2023 increased by more than 8.2 billion VND compared to 2022, equivalent to an increase rate of more than 143%.

Source: https://www.baogiaothong.vn/khach-di-tau-tang-manh-hai-doanh-nghiep-van-tai-duong-sat-bao-lai-192240201185252203.htm