PETALING JAYA: Zecon Bhd’s net profits soared 59.7% to RM9.15 million in its third quarter ended March 31, from RM5.73 million in same quarter of the previous year, mainly contributed by the Hospital Pakar Kanak-Kanak Universiti Kebangsaan Malaysia (HPKK) and the Pan Borneo projects.
Revenue for the quarter stood at RM143.1 million, a 26.9% increase from RM112.8 million previously.
For the nine-month period ended March 31, 2020 the group registered a net profit of RM43.18 million, compared with the RM8.76 million net loss reported in the corresponding period of the previous year.
Its revenue for the period rose 59.8% to RM466.9 million from RM292.19 million reported previously.
According to the group’s Bursa Malaysia disclosure, it has not been spared from the economic uncertainties brought on by the Covid-19 pandemic, with its planned work programmes and activities for its current projects being adversely affected.
Zecon elaborated that its Pan Borneo Highway project was initially affected by the imposition of the stop-work order issued, which caused a significant delay in its progress, thus affecting the targeted quantum of claims to be billed.
Although it received approval to resume works on May 14, the strict conditions imposed related to working hours and social distancing requirements have directly affected productivity.
Similarly, the group’s HPKK project construction works were also suspended until April 14 and delays in its supply delivery have also contributed to the overall impact on the project.
“In spite of the above challenges and barring any unforeseen circumstances, the group will strive to achieve a favourable performance as planned,” it added.
