Saavedra-led contractor Megawide Construction Corp’s engineering innovation unit Precast and Construction Solutions (PCS) saw its top line grow in the first nine months of 2022.
In a disclosure to the Philippine Stock Exchange on Tuesday, Megawide said that PCS recorded 720 million rupees in revenue for the January to September period.
The company said the PCS top line grew 2% year-on-year and more than tripled from the P206 million recorded two years ago.
Broken down, Megawide said precast sales remained the largest contributor at 54%, followed by batching plants or ready-mix concrete at 34%, and the rest coming from equipment and formwork sales and rentals.
The company said it began a strategic offering of its PCS services to external customers in 2018 to expand its footprint in the local industry and foster eco-friendly innovation.
This segment is proving to be an emerging growth area for Megawide, not only as a pure complementary service under the company’s fully-integrated construction platform, but also as a separate income for a wide range of residential, commercial and industrial uses. Creation as a business. ,
“As ancillary businesses, these legs can benefit from the company’s healthy order book as part of the value chain. Externally, they may seek their own clients outside Megawide to increase their client base and diversify their revenue stream to take advantage of the utility of precast as a natural progression in the construction industry. said Edgar Saavedra, President and CEO of Megawide.
Saavedra said the segment is more scalable and can provide better margins.
“Precast production follows a manufacturing model where economies of scale can be achieved, resulting in higher margins. Operating the largest and most advanced precast facility in the country gives us the opportunity to maximize our unique advantage,” he added.
Megawide said its PCS unit, as a whole, used to account for less than 3% of total construction revenue, but its contribution has more than doubled in the January to September period as its scope expands to affordable housing and horizontal infrastructure. widened to include.
The company said it recently inaugurated a second plant to expand its total capacity and serve larger customers. – DVM, GMA Integrated News