Ramayana profit drops 43 %: Report

Ramayana profit drops 43 %: Report

JAKARTA : PT Ramayana Lestari Sentosa, one of Indonesia's largest
department store operators, Wednesday reported a 43 percent fall
in first-half net profit to Rp 84.69 billion, due to foreign
exchange losses and a decline in interest income.

Ramayana posted net profit of Rp 147.41 billion a year
earlier.

Interest income decreased to Rp 34.84 billion from Rp 41.19
billion. The company also booked foreign exchange losses of Rp
16.96 billion, swinging from foreign exchange gains of Rp 69.91
billion a year earlier.

It didn't provide further comment on its performance.

Analysts said Ramayana is cash-rich and is parking excess
funds in time deposits. Consequently, declining interest rates in
Indonesia's dragged down the company's interest income.

The company's assets expanded to Rp 2.06 trillion from Rp 1.63
trillion.

Sales rose to Rp 1.25 trillion from Rp 971.61 billion in the
year-ago first half, boosting gross profit to Rp 346.07 billion
from Rp 254.63 billion, and operating income to Rp 78.27 billion
from Rp 75.07 billion.

This means that on the operating level, the company grew
during the first half compared with the same period last year. --
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