Ireka expects to return to the black for FY15

KUALA LUMPUR: Ireka Corp Bhd, which has been loss-making for the last three years, expects to return to black in the current financial year ending March 31, 2015, optimistic of stronger contribution from the construction segment as it is actively tender for projects worth RM2 billion, said its executive director Monica Lai Voon Huey.
"For the last three years, Ireka has recorded losses because of the drop in construction turnover. I think in the later part of last year, we managed to secure lots of projects (construction)," she told reporters after the company's AGM here Friday.
Lai said the company's orderbook currently stands at RM1.2 billion, with RM810 million outstanding. She said, Ireka through its infrastructure arm, Ireka Engineering and Construction Sdn Bhd is tendering for a few projects worth RM2 billion.
Lai hopes to secure at least two of the RM2 billion worth of projects it has bid for.
Among its current major jobs include the Vogue Suites Tower 1 in Kuala Lumpur (part of the KL Eco City by SP Setia Bhd), Imperia Puteri Harbour in Iskandar Malaysia, Johor (by UEM Sunrise Bhd), Solstice A Pan'gaea in Cyberjaya (by OSK Property Holdings Bhd) and the MRT package V7 (construction and completion of viaduct guideway and other associated works from Bandar Tun Hussien Onn to Taman Mesra).
For the financial year ended March 31, 2014, Ireka's net losses narrowed to RM28.351 million from RM37.422 million a year earlier while revenue declined to RM289.232 million from RM331.796 million previously.
"Going forward, we should see Ireka's turnover improving because the bigger turnover that we would be able to achieve. Of course, Ireka's performance will also depend on our associate company, Aseana Properties Ltd," she said.
Lai said the company expects the ratio of earning contribution between the property and construction segments to even out to 50:50: by financial year ending March 31, 2017, from the current 20:80.
On the property front, she said the company is constantly on the lookout for land mainly in the Klang Valley.
Lai said the company's land bank currently stands at 65 acres with a gross development value (GDV) of RM2 billion, which will last between three and five years.
"We hope to launch two projects by end of this year. But three or four projects that we want to roll out next year will depend on market conditions. Most of the projects are mid-range markets. So, we are very confident with the market especially in the area that we are developming in Kajang and Nilai. It is booming right now. Over the next three to five years, we will have sufficient launches. As we launch, we still have to look at ways to replenish land," she said.
Lai said the two projects that it plans to launch by end of this year, are the 382 courtyard-style apartments, dwi@Rimbun Kasia (GDV RM130 million) and a modern multifunctional industrial office and warehouse development, ASTA Enterprise Park (GDV RM350 million) in Kajang.