In the third quarter, Hanoi Railway Transport Joint Stock Company (HRT) achieved an after-tax profit exceeding VND54 billion (US$2.2 million), the highest quarterly profit in over seven years.

Hanoi's station. Photo: The Hanoi Times

According to its published financial statement, HRT reported revenues of over VND637 billion ($26 million), a nearly 5% decrease compared to the third quarter of 2022. However, due to a more significant reduction in the cost of inputs, the gross profit saw an improvement of almost 40%, reaching around VND110 billion ($4.47 million).

HRT has shown consistent profit growth for three consecutive quarters. Nevertheless, the company still has accumulated losses of more than VND285 billion ($11.6 million), a result of 11 consecutive quarters of business losses during the period of the epidemic.

For the first nine months of the year, the company recorded revenues of VND1.9 trillion ($77.3 million) and profits of nearly VND98 billion ($4 million).

HRT is a member of the Vietnam Railway Corporation (VNR), one of the two largest enterprises within VNR, alongside Saigon Railway Transport (SRT).

HRT operates various routes from Hanoi to Ho Chi Minh City, Lao Cai, Dong Dang, and Haiphong, and two routes, Yen Vien - Quan Trieu and Kep - Cai Lan. The company also provides international cargo and passenger transportation through two border gates, Ha Khau and Huu Nghi. HRT owns 600 railway carriages, 3,300 freight wagons, and employs 5,000 people.

In response to the previous period of business losses, besides the impact of the pandemic, HRT acknowledged that the service standards provided by its employees did not meet customer requirements, particularly among older workers. Its wagons and carriages are often full and Wi-Fi has not been available on board.

This year, the company is focusing on addressing these shortcomings while concurrently promoting the baggage and cargo transportation segment and collaborating with major travel agencies in Hanoi to attract foreign tourists. HRT also has plans to invest in new train cars to replace outdated ones and build new 1,000 mm gauge freight cars according to the proposed plan.