Encorp net profit halves to RM4m in third quarter
PETALING JAYA: Property developer Encorp Bhd saw its net profit in the third quarter ended Sept 30, 2016 (Q3FY16) halved to RM4.09 million, from RM8.18 million in the same period last year.
However, its revenue more than doubled to RM79 million, from RM38.06 million in the previous corresponding quarter, resulting from the rationalisation of the group’s operations and projects.
For the nine months period, the group recorded a net profit of RM11.8 million, against a net loss of RM3.03 million a year ago. Revenue increased 42.4% to RM214.5 million, from RM150.6 million previously.
In a filing with Bursa Malaysia yesterday, the property developer said coupled with close monitoring and effective management of the indirect and direct costs of the group, its profit before taxation was RM6.3 million, compared with a loss before exceptional items and taxation of RM1 million previously.
Encorp said it expects the property sector to remain challenging in light of the stringent lending rules imposed by banks and oversupply in certain property sub-sector market.
With the challenges ahead, it added, the group will focus on measures to increase efficiencies and to pursue innovative concepts to enhance its development projects.