KUALA LUMPUR: IJM Corp Bhd's net profit surged to RM236mil in the fourth quarter ended March 31, 2017 compared with RM44.23mil a year ago.
The group recorded a pre-tax profit of RM375.21mil in the fourth quarter, an increase of 178.3% over the corresponding quarter of the preceding year, mainly due to improved earnings from the group’s construction, property development, manufacturing and quarrying and plantation divisions.
Its revenue for the quarter rose to RM1.66bil against RM1.16bil previously while earnings per share for the period rose to 6.54 sen from 1.24 sen a year ago.
For the full financial year ended March 31 (FY17), IJM Corp’s net profit declined 17.6% to RM653.77mil from RM793.58mil in FY16.
The group said this was mainly due to the non-recurrence of the one-off gains from the disposals of a 74% equity interest in Jaipur-Mahua Tollway Private Limited totalling RM168.7mil and a 70% equity interest in Swarna Tollway Private Limited totalling RM133.3mil that were recorded in the preceding year.
“Excluding the effect of these one-off gains, the group’s pre-tax profit actually grew by 18.3% over the preceding year, mainly due to better earnings from the group’s construction, property development, manufacturing and quarrying and plantation divisions,” IJM Corp said in the notes accompanying its financial results.
Its revenue for the full year grew 18.27% to RM6.06bil from RM5.12bil in FY16. The group has proposed a second interim dividend of 4.5 sen per share, payable on July 21.
Meanwhile, IJM Plantations reported a net profit of RM22.04mil in the fourth quarter ended March 31 against a net loss of RM16.47mil a year ago. Its revenue for the period jumped to RM192.63mil from RM115.04mil previously.
For FY17, IJM Plantations posted a net profit of RM115.08mil on revenue of RM753.71mil. It has declared a single tier interim dividend amounting to 7 sen per share, payable on July 19.
Going forward, IJM Corp said its construction division was expecting a satisfactory performance on the current level of its high order book, underpinned by ongoing development activities from the group’s in house property and infrastructural projects and also from the Government’s continuous efforts in implementing the public infrastructural projects under the 11th Malaysia Plan.
“The property market is expected to remain challenging given weaker consumer sentiment coupled with continued stringent mortgage approval and incoming supply of completed properties. Nonetheless, with unbilled sales of about RM1.7bil, the group’s property development division is expected to maintain its performance in the coming financial year,” IJM Corp said.
“Barring unexpected adverse impact of volatility in the palm produce prices and foreign exchange rates, the group’s plantation division expects the profitability level for the coming financial year to be satisfactory on the back of higher crop production from the increasing young mature areas in Indonesia and FFB yields being sustained in the Malaysian operations,” it added.
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