KUALA LUMPUR (Nov 26): Malayan Cement Bhd (KL:MCEMENT), a unit of conglomerate YTL Corp Bhd (KL:YTL), saw its net profit rise 45% to a record high of RM139.44 million for the first quarter ended Sept 30, 2024 (1QFY2025) against RM96.10 million a year earlier, despite marginal revenue growth.

The cement and building material maker, in a filing to Bursa Malaysia on Tuesday, attributed the better earnings to ongoing improvements in the company’s operational efficiencies, coupled with lower production costs.

Quarter earnings per share increased to 10.44 sen from 7.34 sen in 1QFY2024.

Quarterly revenue grew marginally to RM1.17 billion, compared with RM1.15 billion last year. This was mainly driven by higher revenue from the ready-mixed concrete segment, which saw higher demand for high-grade ready-mixed concrete and bespoke products.

The company did not declare any dividend for the latest quarter.

On a quarter-on-quarter basis, the group’s net profit grew 26.6% from RM110.18 million in 4QFY2024, as revenue increased 13% from RM1.04 billion in the immediate preceding quarter, thanks to higher sales volume for domestic cement and ready-mixed concrete, as the previous quarter was affected by the festive season.

Commenting on its prospect, Malayan Cement remains optimistic about future demand for cement, citing Malaysia's strong housing and infrastructure development, underpinned by a growing young population and rapid urbanisation.

The group will also explore opportunities to increase exports, the Langkawi plant is well positioned to benefit from this,” it said.

Shares of Malayan Cement rose eight sen to RM4.65 on Tuesday, valuing the company at RM6.22 billion. Its share price has retreated 20% from this year’s peak of RM5.80.