KUALA LUMPUR: Gamuda said strong property sales abroad mitigated the impact of lower contribution from its construction division in the first quarter ended Oct 31.
For the first three months, net profit was little changed at RM173mil compared with RM172mil made a year ago.
Revenue improved to RM1.1bil against RM904mil achieved previously, the company said in the filing with Bursa Malaysia today.
"The group anticipates current year’s performance to be driven by overseas property sales especially Vietnam and the progress of Mass Rapid Transit (MRT) Line 2 that continues to pick up pace," it said.
Gamuda said progress on the RM30.53bil MRT Line 2 is on track, with the project about two-third completed.
The construction division generated a net profit of RM67.2mil in October quarter, down 7% from a year ago.
The lower construction earnings was mainly due to the reduction in MRT Line 2’s contract value.
Its property division recorded a 36% increase in the net profit to RM47.7mil.
"Gamuda Land sold RM509mil worth of properties in the first quarter of FY2020," it said.
The two projects in Vietnam - Celadon City in Ho Chi Minh City and Gamuda City in Hanoi - continued to deliver steady results and remained the biggest contributor of overseas sales.
Meanwhile, the group's concession business reported a 10% drop in net profit to RM58.6mil.
We're sorry, this article is unavailable at the moment. If you wish to read this article, kindly contact our Customer Service team at 1-300-88-7827. Thank you for your patience - we're bringing you a new and improved experience soon!
What do you think of this article?