CIVIL reveals the construction business outlook, facing ongoing pressure from high costs. The company is moving forward with project management strategy adjustments, controlling costs, managing project progress, and maintaining profitability. In the first quarter of 2023, total revenue was 1,649.42 million baht with a net profit of 40.31 million baht. The outlook for Q2/65 focuses on delivering ongoing projects and partnering with new allies to create a New S-Curve, aiming for a backlog of 15,000 – 20,000 million baht.

Mr. Piyadit Asawasirisuk, CEO of Civil Engineering Public Company Limited (CIVIL), a leading provider of comprehensive construction engineering technology in Thailand, stated that the overall construction business this year continues to be affected by significantly rising material costs due to inflation and global energy market conditions. It is anticipated that there will soon be additional pressure from labor costs.


Mr. Piyadit Asawasirisuk, CEO of Civil Engineering Public Company Limited

This situation necessitates all operators in the business sector to adapt, particularly in cost management and tighter construction management. The company has been continuously implementing these adjustments by incorporating technology into construction processes and closely monitoring construction plans and material prices. As a result, profitability has slightly improved, with a net profit margin in Q1/65 at 2.44%, up from 1.69% in Q4/64.

In terms of performance for Q1/65, the company reported total revenue of 1,649.42 million baht, an increase of 462.60 million baht or 38.98% from the same period last year, which had total revenue of 1,186.82 million baht. The net profit was 40.31 million baht, down from 69.15 million baht in the same period last year, a decrease of 28.84 million baht or 41.71%. However, compared to Q4/64, net profit increased by 17.82 million baht or 79.24%.

The increase in revenue is attributed to large-scale construction projects, such as high-speed rail construction, highway construction, and airport construction. The company has been gradually recognizing revenue continuously, along with effective project management that allows for quick project delivery and revenue recognition within the contract timeframe.

The decrease in net profit compared to the same period last year is due to rising material costs, particularly steel, concrete, and oil prices, which have broadly impacted the construction industry. Additionally, the construction projects undertaken in Q1/65 had relatively low margins.

Looking ahead to Q2/65, the company remains focused on managing construction costs while assessing the situation and adjusting cost management strategies to maintain good profitability. The company is committed to enhancing construction management capabilities to be faster and safer by utilizing modern technology and machinery, ensuring that ongoing projects are completed quickly and with high quality, and managing the supply chain to reduce price volatility.

Furthermore, the company is ready to take on new projects in both the public and private sectors, particularly mega projects and large-scale projects through public-private partnerships (PPP). The company is also negotiating with new private sector partners to create a New S-Curve for growth and increase the backlog to meet the target of 15,000 – 20,000 million baht. Currently, the company has a backlog valued at 14,200 million baht (as of March 31, 2023), with revenue recognition expected to continue until 2027.