PETALING JAYA: Piling and foundation specialist Econpile Holdings Bhd has bagged new contracts cumulatively worth RM638.6mil in the financial year ending June 30, 2019 to date, the company said in a statement yesterday.
In spite of headwinds in the construction sector, the company said the new wins encompassed piling and substructure works for property developments, such as the Terra Putrajaya mixed development and Phase 2 of Pavilion Damansara Heights. “The balance consisted of piling works for infrastructure projects like Gemas-Johor Bahru electrified double track rail and Hospital Kuala Lumpur underground station of the Klang Valley Mass Rapid Transit 2.
“Econpile’s new wins and projects in hand bring the Group orderbook to approximately RM1bil, which will provide earnings visibility over the next 18 months,” it said.
Meanwhile, the company reported a net profit of RM21.75mil in the third quarter ending March 31, 2019, which was an 8% drop from RM23.72mil in the previous corresponding period while revenue in the third quarter fell to RM138.26mil from RM205.05mil a year earlier.
For the nine-months period ended March 31, 2019, Econpile’s net profit plunged to RM2.34mil from RM67.64mil in the previous corresponding period, while revenue slipped to RM486.74mil from RM536.12mil a year earlier.
Econpile said the group recorded a decline in current period revenue from both the piling segments from property development projects and infrastructure projects of
RM36.2mil or 8.9% and RM13.2mil or 10.2%, respectively, as a results of a weaker local construction market and deferment in certain infrastructure projects.
As for its other divisions, the company said rental incomes of equipment and gains from the disposal of machineries amounted to RM2mil compared to RM6.9mil in the preceding year corresponding period.