KUALA LUMPUR: Malaysian Resources Corp Bhd’s (MRCB) net profit almost tripled to RM14.03mil in the first quarter (1Q) ended March 31 from RM5.2mil a year earlier.
Revenue for the period surged more than threefold to RM810.71mil against RM226.7mil last year, MRCB said in the notes accompanying its financial results.
“The higher revenue and pre-tax profit was largely due to the consolidation of the light rail transit 3 (LRT3) project company, Setia Utama LRT3 Sdn Bhd (SULSB), which took MRCB’s ownership to 100% and allowed the group to recognise 100% of the revenue and profit from the project,” it said.
The group said operating profits were mainly derived from the LRT3 project, which reached physical construction progress of 71% and financial progress of 63% at the end of March 2022.
The project contributed a pre-tax profit of RM33.5mil in 1Q, compared to RM5.9mil in aggregate on an equity accounting basis in the corresponding period in 2021 when it was only 50% owned.
MRCB said additional contributions also came from the sale of completed unsold inventory and ongoing property development projects, namely Sentral Suites in KL Sentral, the 9 Seputeh (pic) mixed residential developments in Jalan Klang Lama and Alstonia in Bukit Rahman Putra.
The group’s 27.94% equity-owned Sentral REIT and associated company, Sentral REIT Management Sdn Bhd, contributed a combined profit after tax of RM3.9mil to the group compared with RM4.3mil in the preceding financial quarter ended March 31, 2021.
As at March 31, the group’s property development and investment division sold RM22.9mil worth of properties from its ongoing developments.
“The group’s immediate priorities in 2022 remain on enhancing cashflow by monetising its inventory of unsold completed stock, which stood at RM349.7mil on March 31.
“It also looks forward to improved sales from foreign buyers with the opening of borders, particularly for its VIVO 9 Seputeh development and St Regis units,” it said.
It added that the division has cumulative unbilled sales of RM818.3mil.
Meanwhile, the engineering, construction and environment division’s long-term external client order book expanded by RM5.6bil following the acquisition of SULSB to RM27.3bil at the end of 2021.
The division has begun to recognise 100% of the revenue and profit from SULSB and will do so for the remainder of the project, which is due to be completed in 2024.
As at March 31, the project has achieved physical construction progress of 71% and financial progress of 63%.
“The division’s open tenders stood at RM370mil as at March 31, after many previous project tenders were indefinitely postponed due to the pandemic.
“As at March 31, the external client order book stood at RM27.3bil, while the unbilled portion was RM18.5bil,” MRCB said.