IJM Corp's Q2 net profit more than triples

 Publish date: Tue, 26 Nov 2019, 8:31 PM

KUALA LUMPUR: IJM Corp Bhd’s net profit more than tripled to RM70.10 million in the second quarter ended September 30, 2019, from RM21.92 million a year ago.
This was boosted mainly by much better contributions from its infrastructure and property development segments.
Its infrastructure division saw higher contributions from the local toll and port concessions while the property business’ profit was lifted by stronger sales and the completion of some development projects, IJM Corp said in a filing with Bursa Malaysia today.
Its construction segment, easily the largest revenue contributor at RM594.16 million, however posted a flat pre-tax profit of RM38.50 million. It was impacted by the subdued property market and reduced infrastructure spending by the government, the company said.
Basic earnings per share rose to 1.93 sen from 0.60 sen previously.
IJM Corp reported a 20.2 per cent jump in total revenue to RM1.57 billion during the quarter under review versus RM1.31 billion previously, led mainly by property development and construction businesses which were also the group’s top revenue contributors in the last three financial years.
The group expects the current financial year to be satisfactory due to factors such as its property development division’s strategically located properties and potential conversion of unbilled sales of RM1.9 billion.
Regarding its construction business, IJM Corp said with the reduced availability of new construction jobs locally and a more competitive tender environment, the division would remain vigilant and cautious to preserve earnings while focusing on the execution and timely completion of its outstanding order book of RM5.1 billion.
As for the plantation division, the group said it continued to face cost pressures arising mainly from wage increases, and the impact of the volatility of foreign exchange rates, particularly that of the rupiah against the US dollar and Japanese yen.
“Current commodity price levels and anticipated better crop production from both the Malaysian and Indonesian operations for the second half of the financial year are expected to contribute to an improved performance,” it said.
Meanwhile, the group’s toll and port operations would continue to provide recurrent revenue streams as existing concessions matured, thereby further enhancing the earnings of the group’s infrastructure division, it added.
 - Bernama
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