YTL Corp Bhd carries out its cement manufacturing activities through its subsidiary YTL Cememt Bhd.
KUALA LUMPUR: YTL Corp Bhd
reported on Tuesday a 6% increase in profit from operations for the fourth quarter (Q4) ended June 30 to RM709.44mil.
However, the conglomerate’s group earnings fell 15% to RM212.31mil due partly to the absence of a deferred tax credit recorded in Q4 last year. There was also a significant drop in the cement business’ profit.
In the corresponding quarter last year, its 47.29%-owned YTL Power International Bhd had benefited from a one-off tax credit of RM260.1mil on revaluation of power plant assets in Indonesia.
The absence of this, along with higher interest expenses, resulted in YTL Corp’s “management services and others” segment to swing to a pre-tax loss of RM29.98mil in the quarter under review from a RM250.41mil profit previously.
As for YTL Corp’s cement manufacturing and trading business, this segment reported an 83% plunge in pre-tax profit to RM18.91mil due to competitive pricing and higher cost of production.
YTL Corp, which also derives its results from construction, information technology, hotels and property investments, posted 16% higher revenue of RM3.90bil for the quarter.
The utilities and cement segments continued to be the largest revenue contributors, making up 64% and 17% of the group revenue.
For the entire financial year to June 30 (FY17), YTL Corp’s earnings slid 13% to RM796.29mil on 4% lower revenue of RM14.73bil.
Only the construction and hotels segments registered higher pre-tax profits for the year. Most of the 236% pre-tax profit growth in the construction segment (to RM57.23mil) came from a RM34.1mil gain from an arbitration award to Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd.
The utilities segment generated a pre-tax profit of RM884.74mil, a decline of 14% from the preceding year, as revenue slipped 5% to RM9.55bil.
This was mainly due to the strengthening of the ringgit against the British pound in the water and sewerage division, and the absence of the one-off gain of RM152.6mil from an arbitration award.
The board of directors has declared an interim dividend of 5 sen per share for FY17 but no final dividend (FY16: interim dividend of 9.5 sen).
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