Hanoi Railway Transport reports record profit
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The Hanoi Railway Transport Joint Stock Company has reported record after-tax profits of VND54 billion (US$2.2 million) mainly due to a nonrecurring revenue item, interest in bank deposits.
It received interest of VND245 billion on deposits, but also managed to trim expenses, according to its latest financial statements. Gross profit rose 40% year-on-year to VND110 billion. However, total revenues were down 5% to VND637 billion.
The company has improved its profits for three consecutive quarters, but still has accumulated losses of VND285 billion after 11 quarters of losses during the Covid pandemic.
For the year to date it had revenues of VND1.895 trillion and profits of VND98 billion, the former only slightly up year-on-year but the latter surging 2.8-fold.
This year the company is promoting cargo transportation and joining hands with major travel agencies to transport foreign tourists.
The company, one of the two biggest subsidiaries of the Vietnam Railways Corporation, operates northern and the Hanoi-Ho Chi Minh City routes and international transportation of goods and passengers through two northern border gates.
Questions & Answers
Q.What was the main reason for Hanoi Railway Transport's record profit?
What was the main reason for Hanoi Railway Transport's record profit?
The record after-tax profit was mainly due to a nonrecurring revenue item, interest received from bank deposits. The company received VND245 billion in interest, contributing significantly to its financial performance for the period reported.
Q.How did the company's total revenues perform despite the record profit?
How did the company's total revenues perform despite the record profit?
Despite achieving a record profit, the company's total revenues were down 5% year-on-year, reaching VND637 billion. However, its year-to-date revenues of VND1.895 trillion were slightly up compared to the previous year.
Q.Does the company still have financial challenges despite its recent success?
Does the company still have financial challenges despite its recent success?
Yes, despite improving profits for three consecutive quarters, Hanoi Railway Transport still carries accumulated losses of VND285 billion. These losses accumulated over 11 quarters during the Covid pandemic period, indicating ongoing recovery efforts are needed.
Q.What strategies is Hanoi Railway Transport using to improve its business this year?
What strategies is Hanoi Railway Transport using to improve its business this year?
This year, the company is focusing on promoting cargo transportation to boost its business. Also, it is collaborating with major travel agencies to facilitate the transport of foreign tourists, expanding its passenger service offerings.
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