Jakarta. Astra International, Indonesia's largest automotive distributor, on Tuesday (27/02) posted a 25 percent increase in net profit for 2017, but fell short of estimates as its biggest segment underperformed.
Contribution from its automotive business were under pressure due to competition in car market, said Astra, whose business interests also include banking, mining and plantations.
Income from the segment fell 3 percent and its contribution to Astra's total income fell to 47 percent in 2017, from nearly 61 percent in 2016, Astra said in a statement.
Astra reported Rp 18.88 trillion ($1.38 billion) in net income last year, up from Rp 15.16 trillion a year earlier. That came below average estimate of Rp 19.50 trillion, according to 15 analysts polled by Thomson Reuters I/B/E/S.
Astra's overall income was boosted its resources-related subsidiaries, such as United Tractors and palm plantation company Astra Agro Lestari, both of which benefited from a rebound in commodity prices.
Income from its financial businesses also helped Astra's overall performance as Bank Permata, which 45 percent controlled by Astra, swung to a profit of 748 billion rupiah in 2017, from a loss of Rp 6.5 trillion a year earlier.
"After recording an overall good performance in 2017, Astra Group is expected to continue benefiting from improving economic condition and stability in commodity prices, despite rising competition in car market," Prijono Sugiarto, president director of Astra, said in a statement.