YTL Corp sees seven-fold profit surge in 1Q24

Tan Sri Francis Yeoh Sock Ping

KUALA LUMPUR: YTL Corp Bhd reported a 16% year-on-year (y-o-y) increase in revenue to RM7.52bil in the first quarter ended Sept 30, driven by improved performance across almost all business segments.

The conglomerate’s profit after tax (PAT) in the first quarter jumped by more than seven-fold to RM940.2mil as compared to RM123.6mil a year earlier.

Its 49.08%-owned subsidiary, YTL Power International Bhd, saw its revenue rising by 15% y-o-y to RM5.45bil in the first quarter ended Sept 30, while PAT rose by about five-folds to RM850.3mil.

YTL Power executive chairman Tan Sri Francis Yeoh Sock Ping attributed the improved financial performance to better margins and the strengthening of the Singapore dollar against the ringgit in the power generation segment.

“The water and sewerage segment also recorded improved revenue for the quarter under review, although higher interest accruals on index-linked bonds continued to have a non-cash impact on the segment’s bottom line,” he said.

As for Malayan Cement Bhd, in which YTL Corp controls a 78.58% stake, revenue moved north by 33.7% y-o-y to RM1.15bil in the three-month period ended Sept 30.

Notably, the subsidiary’s PAT increased exponentially to RM96.1mil over RM900,000 from the corresponding quarter of last year.

Yeoh said Malayan Cement’s stronger revenue was contributed mainly by higher volumes and stabilisation in selling prices for both domestic cement and ready-mixed concrete.

“Higher profit before tax was primarily the result of increased revenue, with the stabilisation in selling prices moderating the impact of higher energy costs,” he pointed out.

Meanwhile, YTL Hospitality Real Estate Investment Trust (REIT) recorded a higher revenue of RM130.9mil in the first quarter ended Sept 30, a 17% increase year-on-year.

Net property income (NPI) increased to RM68.3mil for the quarter under review compared to RM58.1mil for the same period last year.

However, income available for distribution declined to RM26.5mil for the current quarter compared to RM3mil for the corresponding quarter last year.

As the executive chairman of Pintar Projek Sdn Bhd, the manager of YTL Hospitality REIT, Yeoh said the increase in revenue was mainly due to better performance of the Australian hotels with international events.

This led to higher average daily room rates and occupancy levels during the quarter.

“NPI grew 17% to RM68.3mil, offset by an increase in finance costs resulting from higher interest rates on Australian dollar-denominated borrowings, which impacted distributable income for the quarter under review.”

YTL Corp controls a 55% equity interest in YTL Hospitality REIT.

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