Railway transport unexpectedly reports profit of over 100 billion

Saigon Railway Transport Joint Stock Company has just announced its third quarter business results, with sales and service revenue reaching more than 442 billion VND, accumulated from the beginning of the year to the end of September reaching more than 1,358 billion; while in the first 9 months of 2022, revenue reached nearly 1,200 billion.

Large revenue also brought record 9-month profits to this business: reaching more than 80 billion VND; while the same period in 2022 was only more than 38 billion.

Two railway transport companies, Hanoi and Saigon, announced their 9-month financial reports, with profits of over 100 billion VND due to the large number of passenger trains (Photo: illustration).

Previously, Hanoi Railway Transport Joint Stock Company also announced that revenue and other income in 9 months reached more than 1,912 billion VND, an increase of 8.64% over the same period in 2022. In particular, profit after tax was more than 97 billion, an increase of more than 177.9% over the same period in 2022.

Speaking with Giao thong Newspaper, the leader of Vietnam Railways Corporation said that railway transport enterprises achieved high revenue results because this year passenger transport recovered strongly, especially during the peak of Tet transport in the first quarter and summer transport in the third quarter.

However, this figure does not reflect the final results of the whole year due to the nature of railway transport, large costs will be concentrated in the fourth quarter such as vehicle repairs, salary payments and other expenses. Therefore, at the end of the year, profits will decrease sharply.

For more information, Mr. Thai Van Truyen, General Director of Saigon Railway Transport Joint Stock Company, said that railway transport only "earns" high revenue in the first and third quarters, while the fourth quarter is the low season, so revenue is very low while expenses are high. Of which, vehicle repair costs account for the largest proportion because this is the time to focus on repairing train cars to ensure safe operation of the Lunar New Year train.

"In 2022, Saigon Railway Transport Joint Stock Company made a profit of more than 38 billion VND in the first 9 months, but at the end of the year, it only made a profit of more than 400 million VND. Similarly, in 2022, Hanoi Railway Transport Joint Stock Company made a profit of more than 4 billion VND. This year, the plan at the beginning of the year of Saigon Railway Transport Joint Stock Company was not to make a loss, but so far it is expected to make a profit of about 600 million VND," said Mr. Truyen.

Source: https://www.baogiaothong.vn/van-tai-duong-sat-bat-ngo-bao-lai-hon-tram-ty-192231030131432271.htm