Gamuda Bhd recorded a higher pre-tax profit of RM109.7 million in the first quarter ended Oct 31, 2010 from RM94.5 million in the preceding year's comparative quarter.

The company's revenue rose to RM634.2 million from RM624 million previously while net profit for the period increased to RM90.4 million from RM77 million.

The increase in pre-tax profit and net profit was due to higher contributions from the construction and property divisions, it said in a filing to Bursa Malaysia today.

Gamuda declared a first interim dividend of three sen per share less 25 per cent income tax and three sen per share single-tier (exempt from tax).

On prospects, Gamuda said it expects to perform better in the next few quarters of the current financial year with existing construction projects progressing on schedule, and the strong performance of the property division.

Gamuda said the group is also expected to benefit from the roll-out of projects earmarked under the government''s Economic Transformation Programme (ETP) such as the Klang Valley Mass Rapid Transit project.

It also said work on the Yenso Park and sewage treatment plant in Gamuda City, Vietnam, remained on track.

Work on the sewage treatment plant was at an advanced stage and is expected to be substantially completed in the current financial year, it added.

On its property division, Gamuda said the group's property developments in Malaysia achieved stronger sales on the back of a buoyant economy, improved consumer sentiments as well as an attractive mortgage environment.

'Unbilled sales reached RM760 million as a result of good sales performance. The property division's financial performance is expected to be better in the next few quarters of the current financial year,' it said.

According to Gamuda, strong buying activity was evident, particularly in matured locations and well-regarded developments such as Bandar Botanic, which attracted significant demand for its semi-detached houses and bungalow homes, Horizon Hills and Jade Homes.

Its flagship development, Gamuda City in Hanoi, was gearing up for its maiden launch with several thousands of interested purchasers having registered their interest in this development.

Gamuda's second development, Celadon City in Ho Chi Minh City, was also ready for its maiden launch in the first half of 2011.
These two developments in Vietnam are expected to be the key drivers of revenue and earnings growth for the overall property division, it said. -- Bernama