MEGAWIDE Construction Corp. said its unit, Precast and Construction Solutions (PCS), has the potential to be a growth driver for the company after recording P720 million in revenues for the first nine months of 2022, or higher by 2% than the previous year.
“The 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 as a separate income-generating business catering to a wide array of residential, commercial, and industrial uses,” Megawide said in a statement on Tuesday.
According to the company, precast is the biggest contributor at 54%, followed by batching plant or ready-mix concrete (34%), and the remainder comes from equipment and formworks sales and rental.
PCS used to make up less than 3% of Megawide’s total construction revenues, but has more than doubled its contribution in the January-to-September period, Megawide said, citing its widened scope.
The Megawide unit now covers affordable housing (with Phirst Park Homes supply and installation contracts) and horizontal infrastructure (with Skyway supply contracts), among others.
PCS started offering services to external clients in 2018. Megawide said its engineering innovation unit hopes to expand its footprint in the local industry and promote a “more environmentally friendly innovation.”
“As ancillary businesses, these legs can benefit from the company’s healthy order book as part of the value chain,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said.
“Externally, they can also look for their own clients outside of Megawide to increase their customer base and diversify their revenue stream to leverage on the usability of precast as a natural progression in the construction industry,” he added. — Arjay L. Balinbin