KUALA LUMPUR: IJM Corp Bhd’s (IJM Corp) net profit slumped to RM27.03 million in the second quarter ended Sept 30, 2022 (Q2) from RM629.3 million in the same period a year ago due to lower revenue in the construction segment.
Revenue rose 22.6% to RM1.07 billion from RM874.25 million previously following the full resumption of business activities, it said in a filing to Bursa Malaysia.
IJM Corp said the construction segment’s revenue declined by 22.6% in Q2 compared to the same quarter a year ago, mainly due to lower construction activities as a result of certain projects being completed in the previous financial year while new projects secured are presently in their initial stages.
The company recorded higher revenue in the property development, manufacturing and quarrying as well as infrastructure segments.
For property development, revenue in Q2 surged by 103.1% attributable to higher work progress at its ongoing projects, while revenue for the manufacturing and quarrying segment in the quarter reviewed rose 23.3% mainly due to higher deliveries of piles, quarry products and ready-mixed concrete.
Meanwhile, the infrastructure segment’s revenue climbed by 39.6% in Q2, driven by higher toll revenue recorded both locally and overseas.
IJM Corp said the group is expected to deliver a satisfactory performance for the current financial year ending March 31, 2023 (FY2023).
“The performance of the construction division will be underpinned by its outstanding order book of RM4.81 billion which includes RM1.4 billion secured during this financial year-to-date.
With its wide array of highly sought-after products in strategic locations and unbilled sales of about RM3.1 billion, the property division is expected to deliver a satisfactory performance for FY2023.
The performance of the port operations will be dependent on the global trade recovery, it added. - Bernama