automotive

DRMA Reports A Core Profit Growth Of Rp 593.1 Billion And Is Ready To Develop The EV Ecosystem

Leading automotive component manufacturer in Indonesia, PT Dharma Polimetal Tbk (DRMA), has shown strong resilience in facing challenges in the national automotive industry. In the fiscal year 2024, despite stable sales at Rp5.5 trillion, DRMA achieved a core net profit growth of 4.1%, rising from Rp569.6 billion, after accounting for negative goodwill from the acquisition of PT Trimitra Chitrahasta (TCH) in 2023 (non-operational and non-recurring profit), to Rp593.1 billion in 2024.

The two-wheeler (2W) segment has been the main driver of DRMA's growth, with sales reaching Rp3.3 trillion, an increase of 11.9% year-on-year, while total national motorcycle sales only grew by 1.5%. This segment contributed 59% to total sales, remaining the key growth engine for DRMA in 2024.

"Even though there has been a downward trend in sales in the automotive industry throughout 2024, DRMA has demonstrated strong resilience. We recorded better sales and profit performance than the industry. Moving forward, DRMA will continue to seek new growth sources that are less affected by fluctuations in automotive sales, both related to the automotive industry and beyond, leveraging our existing competencies and creating new innovations. Additionally, opportunities to improve efficiency through appropriate technology and automation will make DRMA more competitive and profitable," said Irianto Santoso, President Director of Dharma Polimetal.

In addition to the 2W segment, DRMA's performance in 2024 was also boosted by export sales from PT Dharma Kyungshin Indonesia (DKI), a joint venture between DRMA and Kyungshin Corporation. Exports to the United States began in May 2024, and by the end of the year, DKI recorded sales of Rp708.9 billion, an increase of 103.6%.

With a strong track record in shipping, DKI is confident it can grow its global market share and create new export opportunities. To take advantage of this, DKI is building a new factory covering 2.3 hectares, which will have 1.5 times the capacity of the current one. This factory is expected to be completed in the second half of 2025 and is projected to increase the average number of export containers per month.

To ensure the development and growth of DRMA remains strong and sustainable, the company is looking into opportunities in the electric vehicle (EV) sector. DRMA is actively developing EV components and creating its own EV ecosystem through Dharma Connect.

Tag: DRMA EV Ecosystem National Automotive Industry