KUALA LUMPUR (May 14): Taliworks Corp Bhd (KL:TALIWRK) has posted a 49.4% year-on-year increase in its first quarter net profit amid an increase in the bulk water supply rate for its water treatment and supply division, and a higher share of results from jointly controlled entity Grand Sepadu (NK) Sdn Bhd, on the back of a toll compensation by the government.

The earnings improvement for the quarter ended March 31, 2024 (1QFY2024) was also driven by cost optimisation and higher traffic in the toll highway segment, higher sundry income and lower finance costs incurred during the quarter, Taliworks said in a filing with Bursa Malaysia on Tuesday.

Net profit for the January-March period stood at RM15.03 million, against RM10.06 million in the previous year’s corresponding quarter, as revenue remained relatively flat at RM93.33 million, compared with RM93.53 million previously.

Taliworks explained that the revenue contributed by its water treatment and supply segment was lower due to lower electricity rebates, but this was mitigated by higher revenue, contributed by the toll highway segment from higher average daily traffic.

The public utility group declared a first interim dividend of one sen per share amounting to RM20.16 million, to be paid on June 28. This is lower than the previous year’s first interim dividend of 1.65 sen per share.

Looking ahead, Taliworks executive director Kevin Chin Soong Jin said the group is anticipating an even greater contribution from its renewable energy division.

“This is driven by our ongoing panel replacement efforts at TR CPark (Sdn Bhd) and TR Sepang (Sdn Bhd), set for completion by 3Q2024. Our strategy remains focused on growth in our core water, construction and renewables division,” he said in a statement.

Shares in Taliworks settled one sen or 1.25% higher to 81 sen on Tuesday, giving the group a market capitalisation of RM1.63 billion.