Eco World Q1 net profit soars to RM116m

PETALING JAYA: Eco World Development Group Bhd’s net profit jumped almost six fold to RM116.16 million in the first quarter ended Jan 31, 2017 (Q1’17), from RM20.67 million in the previous corresponding quarter.
Revenue up 27.9% to RM592.7 million, compared with RM463.5 million in the same period last year.
In a filing with Bursa Malaysia yesterday, the property developer said the higher net profit was mainly due to the inclusion of a gain of RM94.8 million which arose from the application of FRS 10 – Consolidated Financial Statements to recognise the impact of the change in the group’s interest in Paragon Pinnacle from a 100% subsidiary to a 60% joint venture.
Excluding the gain on dilution of equity interest in Paragon Pinnacle, Eco World said the net profit for the period was RM21.4 million, which is 3.4% higher than the RM20.7 million reported in Q1’16.
The group said ongoing projects which contributed to the revenue and gross profit achieved included Eco Majestic, Eco Sanctuary and Eco Sky in the Klang Valley, Eco Botanic, Eco Spring, Eco Summer and Eco Business Park 1, Eco Tropics and Eco Business Park III in Iskandar Malaysia as well as Eco Meadows and Eco Terraces in Penang.
On prospects, Eco World said the group believes it is on track to achieve its sales target of RM4 billion in Malaysia for FY17.