Escalating costs a drag on Tuju Setia’s earnings

KUALA LUMPUR: Tuju Setia Bhd posted a lower net profit of RM421,000 in the first quarter ended March 31 (1Q22), compared with RM3.49mil last year, escalated building materials and labour costs as well as preliminaries costs.

The construction services company saw its revenue jump 43.7% to RM85.2mil from RM59.3mil in the previous year’s corresponding quarter.

The improved topline was attributed to the build-up in works momentum from the group’s 10 ongoing projects in 1Q22.

Tuju Setia maintained its focus on delivery, and successfully completed the construction works for Towers A and B of the Lakefront Condominiums in the Emerald Hills township, Cheras in January 2022.

The project comprises two blocks of 28-storey towers with elevated and basement car parks.

Managing director Wee Eng Kong said works for Towers C and D of the Lakefront Condominiums in Emerald Hills, alongside its other ongoing projects are also in progress.

“We are mindful of the ongoing challenges being faced by the construction sector, mainly the escalating cost of building materials and labour shortage, and will remain vigilant in managing our financial cashflow to safeguard the business operations.

“Nonetheless, with Malaysia’s transition to endemic phase, economic activity is expected to recover. As such, we expect to benefit from the recovery with a good mix in our tender book,” he said.

Tuju Setia’s RM1.3bil order book as at March 31 includes commercial and residential high-rise projects and the Kajang Women and Children Hospital.