PETALING JAYA: MALAYSIAN RESOURCES CORP Bhd (MRCB) has posted a net profit of RM4.13mil in the first quarter ended March 31, (1Q19) from RM21.52mil in the same period last year, but expects the pace of recognition from the third light rail transit (LRT3) project joint venture (JV) to pick up.
Pre-tax profit came in at RM8.4mil for the three-month period.
MRCB’s 50%-owned LRT3 project JV contributed a profit after tax of only RM500,000 compared with RM9mil a year ago, the construction and property company told Bursa Malaysia. However, as work on this project has restarted, the pace of profit recognition from the project will increase. As at March 31, 2019, the engineering, construction and environment division’s external client order book stood at RM22.6bil.
MRCB said in 1Q19, group revenue was at RM234.10mil due to newer property development projects still being at the early stages of construction when revenue and profit recognition is minimal, as well as the completion of several large property projects in 2018.
Pre-tax profit was further impacted by income from the LRT3 project being deferred, as a result of it being remodelled from a project delivery partner to a fixed-price turnkey project.
The company said its property development and investment division recorded a revenue of RM85.1mil and an operating profit of RM3mil. It explained that the lower revenue and operating profits were due to the construction completion of two significant property projects, namely, VIVO in 9 Seputeh and Kalista Park Homes in Bukit Rahman Putra, which resulted in revenue from these two key projects no longer being progressively recognised.