KUALA LUMPUR (May 29): IJM Corp Bhd's (KL:IJM) net profit for the fourth quarter ended March 31, 2024 (4QFY2024) leapt over 10-fold to RM305.5 million from RM23.1 million a year earlier, thanks to a sharp rise in other operating income.

The construction giant’s other operating income soared to RM241.79 million from RM71 million in the previous corresponding quarter.

Quarterly revenue jumped 32.6% to RM1.76 billion versus RM1.33 billion previously, driven by improvements across all segments, except for its infrastructure toll division.

Earnings per share climbed to 8.71 sen from 0.66 sen, according to the conglomerate's bourse filing.

IJM declared a single-tier second interim dividend of five sen and a special dividend of one sen, to be paid on July 19. This brings total dividend payment for the full financial year ended March 31, 2024 (FY2024) to eight sen per share, similar to FY2023.

For FY2024, IJM Corp's net profit more than tripled to RM600.3 million from RM158.3 million in FY2023, while revenue grew 29.5% to RM5.9 billion, from RM4.6 billion in the same period the previous year.

Looking forward, IJM chief executive officer and managing director Lee Chun Fai expressed confidence in the group driving further growth with a robust RM6 billion balance order book in its construction division.

Additionally, a strategic focus on sectors like logistics, warehousing, data centres, and electrical and electronics manufacturing positions IJM to support these developments and enhance the project pipeline, Lee said.

"Our investments in the Shah Alam International Logistics Hub and the Exio Logistics hubs in Shah Alam are strategic moves to address the increasing demands of the logistics sector, spurred by e-commerce growth and supply chain diversification," Lee said, adding that these developments expand the group's industrial property portfolio and integrate advanced technologies.

Segmental performance

IJM's construction segment revenue surged by 97.1% year-on-year(y-o-y) to RM524.7 million in 4QFY2024, from RM266.2 million in the previous year’s corresponding quarter, primarily driven by increased construction activities.

However, it incurred a loss before taxation (LBT) of RM1.5 million, compared to a profit before taxation (PBT) of RM38.8 million, attributed to losses from three ongoing projects affected by work scope changes, material price increases and prolongation costs.

In terms of profitability, its infrastructure segment, notably the toll division, posted PBT of RM77.2 million versus LBT of RM158.9 million, attributed to the absence of higher maintenance costs and expected credit losses amounting to RM133 million related to a financial instrument associated with the West Coast Expressway in FY2023.

This is despite revenue falling slightly by 7.4% to RM133.3 million from RM143.9 million, mainly due to the restructuring exercise of the Besraya Highway, which encompassed a lower toll rate and a longer concession period.

For its port division under the infrastructure segment, PBT jumped over fivefold to RM49 million from RM8.5 million, driven by higher revenue, which increased by 36.4% to RM128.9 million from RM94.5 million, thanks to higher port revenue resulting from the recovery in cargo throughput, additional cargo from industries near Kemaman, increased ship revenue and the implementation of new tariff rates effective end-March 2023.

Shares in IJM fell one sen to RM2.54 on Wednesday, giving the group a market capitalisation of RM9.26 billion.