Gamuda posts higher profit

Better performance due to cost savings from project near-completion

PETALING JAYA: Gamuda Bhd saw its net profit for the second quarter ended Jan 31, 2017 rising 3.8% to RM166.3mil, mainly due to cost savings from the near-completion of underground works for the Klang Valley Mass Rapid Transit (KVMRT) Line 1.

The group also recorded a 61.9% jump in revenue for the quarter to RM853.9mil compared to a year ago.

In its filing with the stock exchange, Gamuda said the jump in revenue was supported by the higher work progress related to the underground and elevated works on the KVMRT Line 2.

For the year-to-date period, the group saw revenue rising 30.6% to RM1.36bil, while net profit increased by 2.2% to RM328.4mil. It cited the same reasons for the higher profit and revenue during the period.

During the first half, the group’s property division also recorded an increase in revenue due to the higher sales performance of its properties in Vietnam. However, it saw a decrease in profit before tax due to the softening of the property market in Malaysia.

As for its water and expressway concessions division, the group said the increase in revenue and profit before tax mainly resulted from the toll-rate hikes of certain expressways.

The group’s profit before tax of RM219mil for the latest quarter was marginally higher than the preceding quarter’s profit before tax of RM206mil.

On its prospects for the year, the group said it anticipates a good performance from the steady earnings of its expressway concessions division and the ramping up of works for the KVMRT Line 2.

The group’s construction unbilled order book as at Jan 31, 2017 was at RM8.3bil.

“The property division’s performance is expected to pick up in the next few quarters due to the launches of several new projects in Malaysia and overseas,” it said.

The property division sold RM783mil worth of property in the first half of this year, double that of the RM385mil sales registered during the same period last year.

“The better performance is mainly contributed by the robust sales from the overseas projects and improved sales from Horizon Hills, Jade Hills and Bukit Bantayan,” it said.

Unbilled sales at the end of the current quarter was at RM2bil.