BY SHARIDAN M. ALI

PETALING JAYA: Gamuda Bhd’s net profit for the second quarter ended Jan 31 fell to RM160.1mil from RM182.2mil a year ago.

The construction giant also recorded lower revenue mainly due to the softening of the property market and tapering of underground as well as elevated works for the Klang Valley mass rapid transit (KVMRT) Line 1 project.

The company’s revenue for the quarter stood lower at RM527.4mil against RM653.2mil last year.

This was also reflected in the second half of its financial year net profit at RM321.3mil, a decrease from RM368mil in the same period last year.

Revenue for the six months was at RM1.04bil, down from RM1.22bil previously.

Earnings per share was at 13.36 sen compared to 15.78 sen last year.

“The decrease in revenue and profit resulted from the softening of the property market in Malaysia. Nevertheless, sales from properties in Vietnam continued to improve.

“The decrease in revenue (including the share of joint-venture companies’ revenue) and profit before taxation for the current quarter and current year-to-date resulted from the tapering of underground and elevated works of the KVMRT-Line 1 project,” it said in a filing with Bursa Malaysia.

This, according to Gamuda, reflected its role as a project delivery partner which is to deliver to the owner, Mass Rapid Transit Corp Sdn Bhd, a fully operational railway system within the agreed target cost and completion date.

“Overall cumulative progress at the end of February 2016 was 79% completion. The project is on target for Phase 1 completion in December 2016 and full completion by July 2017, with no significant cost overruns so far,” it said.

Going forward, Gamuda anticipates a good performance this year from ongoing construction projects and steady earnings from its water and expressway concession divisions.

However, with the softening residential and non-residential property market in Malaysia, weaker growth for the property division is expected over the coming quarters.

Maybank Investment, in a report, said the KVMRT Line 2 could be the next key project in the construction industry to start rolling out major jobs in March and April.

“MMC-Gamuda would be the biggest beneficiary as the potential winner of the KVMRT Line 2 underground works, given that the value could be significantly higher versus RM8bil under the KVMRT Line 1,” it said.