Gamuda net profit for Q2 up, thanks to cost savings

PETALING JAYA: Gamuda Bhd’s net profit for the second quarter ended Jan 31, 2017 rose 3.84% to RM166.26 million from RM160.11 million a year ago mainly due to cost savings, which resulted in a higher pre-tax profit.

In a filing with Bursa Malaysia yesterday, the company said its pre-tax profit rose 13.75% to RM218.61 million from RM192.18 million a year ago due to cost savings from the near-completion of underground works of Klang Valley Mass Rapid Transit (KVMRT) Line 1.

Revenue for the quarter rose 61.90% to RM853.88 million from RM527.43 million a year ago mainly due to the higher work progress of underground and elevated works of the KVMRT Line 2.

For the six months ended Jan 31, 2017, net profit rose 2.20% to RM328.41 million from RM321.35 million a year ago while revenue rose 30.62% to RM1.36 billion from RM1.04 billion a year ago.

During the period, the construction division posted higher revenue and pre-tax profit due to higher work progress of underground and elevated works of the KVMRTLine 2 and near-completion of underground works of KVMRT Line 1.

The water and expressway concessions division also saw better results, mainly due to the toll rate increases of certain expressways.

The property division’s revenue improved due to higher sales performance of Vietnam properties. However, pre-tax profit was lower due to the softening of the Malaysian property market.

Moving forward, the group anticipates good performance overall this year, from the steady earnings of expressway concessions division and the ramping up of works for KVMRT Line 2.

It expects the property division’s performance to pick up in the next few quarters due to the launches of several new projects in Malaysia and overseas. Its construction unbilled order book stood at RM8.3 billion as at Jan 31, 2017.