Gamuda posts lower Q1 net profit

Pics of MRT construction workers at the site in Sungai Buloh . AZMAN GHANI / The Star

PETALING JAYA: Gamuda Bhd’s net profit for its first quarter ended Oct 31, 2015 dipped 13% to RM161.23mil from RM185.85mil in the previous year's corresponding period, mainly due to the completion of the electrified-double tracking railway project in November 2014 and softening of the local property market. 

Revenue, meanwhile, dropped to RM512.80mil from RM569.64mil a year earlier.

In a filing with Bursa Malaysia on Wednesday, the company said its construction division recorded an increase in revenue due to higher work progress of the Klang Valley Mass Rapid Transit (KVMRT – Line 1) project.

The company said the Line 1 project was 76% complete as at November 2015 and scheduled to be fully completed by 2017.

“The underground works package has achieved a progress of 83% at the end of November 2015.”

Despite lower earnings from its property division, the company however said sales from its properties in Vietnam continued to improve.

“The division sold RM270mil worth of properties in the current quarter, down from the previous quarter sales of RM400mil due to the weak Malaysian property market especially the Iskandar Malaysia region in Johor.

“Unbilled sales at the end of the current quarter were RM1.2bil.”

The water and expressway concessions division also saw lower earnings due to costs of periodic resurfacing works for expressways in India.

On its overall prospects for its current financial year, the company said it anticipated a good performance this year from ongoing construction projects and steady earnings from the water and expressway concession division.

“However, with the softening residential and non-residential property market in Malaysia, weaker growth for the property division is expected over the coming quarters.”

Gamuda declared a first interim dividend of six sen per share for its current financial year ending July 31, 2016, payable on Jan 29, 2016.

Gamuda shares rose 2 sen to close at RM4.40 on Wednesday, with 3.682 million shares traded.