Mudajaya Q1 results hit by associate losses

PETALING JAYA: Mudajaya Group Bhd reported a net loss of RM26.76 million in the first quarter ended March 31, 2017 compared with a net profit of RM5.95 million a year ago due to the equity accounting of associate losses.
Revenue for the quarter fell 11.53% to RM156.99 million from RM177.45 million a year ago due to lower revenue in almost every segment.
Mudajaya expects the construction sector to remain vibrant with the ongoing stream of mega infrastructure projects and is confident that it will benefit from some of these projects. Its order book of RM2.4 billion as at end March 2017 is expected to sustain its operations for the medium term.
However, the investment in the independent power producer (IPP) in India via 26% associate RKM Powergen Private Ltd continues to pose a very challenging prospect.
"Despite limited control and influence, the group's management continues to make strenuous efforts with RKM to ensure that all four units of the IPP development come on stream to enhance the value of assets, in addition to providing recurring income to the group," it said.
The group said it will continue to pursue new investments locally and abroad to build up its assets with recurring income streams to cushion the cyclical nature of construction sector. It also plans to expand on its precast concrete manufacturing business.