IJM Corp 1Q profit rises 3-fold to RM100.6mil

KUALA LUMPUR: IJM Corp Bhd will be focusing on the timely execution and completion of its outstanding order book of RM4.9bil, of which RM650mil was newly secured in the first quarter ended June 30, 2023 (1Q24).

In a filing with Bursa Malaysia, IJM Corp said the roll-out of large-scale public infrastructure projects by the government is also expected to increase the group’s opportunity for order book replenishment.

For 1Q24, IJM Corp’s net profit jumped to RM100.64mil from RM33.41mil in the previous corresponding period, while revenue in the first quarter grew to RM1.23bil from RM1.07bil a year earlier.

Basic earnings per share stood at 2.87 sen versus 0.95 sen previously.

IJM Corp said revenue in 1Q24 for its construction segment increased by 14.5%, driven mainly by higher construction activities during the period.

“However, pre-tax profit decreased by 42.6% because some ongoing projects were impacted by the material and commodity price increases resulting in lower margins.

“Meanwhile, new projects undertaken are presently in their initial stages of construction progress which do not allow for profit recognition until a set milestone of physical completion is achieved.”

For the property development division, IJM Corp said revenue increased slightly by 7.1%, mainly due to the higher level of work progress achieved for the division’s ongoing developments.

Meanwhile, pre-tax profit increased significantly by 139.3% as compared to 1Q23.

It said this was principally due to the recognition of unrealised foreign exchange gains of RM42.2mil in 1Q24 as opposed to unrealised foreign exchange losses of RM15.4mil in 1Q23.

For the manufacturing and quarrying segment, IJM Corp said revenue and pre-tax profit improved significantly by 23.3% and 41.7% respectively year-on-year, principally due to higher deliveries of piles, quarry and ready-mixed concrete coupled with higher margins for its piles.

As for its infrastructure segment, IJM Corp said revenue increased by 15%, driven by higher port revenue arising from the recovery of cargo throughput.

Pre-tax profit meanwhile increased by 1,660.9%, mainly attributable to higher profit contribution from the port business and lower unrealised foreign exchange losses of RM1.9mil for 1Q24 on dollar-denominated borrowings for the group’s Indian operations.

Despite challenges faced such as rising interest rate and cost of building materials, IJM Corp said its property division’s focus is to continue offering compelling products that are aligned with market preferences at the various price point segments.

“With unbilled sales of about RM2.5bil, the property division is expected to deliver a solid performance for the current financial year.

“The group’s Industry division is expected to post another strong performance for the current financial year based on its strong order book in hand.”

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IJM , order book , construction , property , sales


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