KUALA LUMPUR: IJM Corporation Bhd's net profit dropped 49.1 per cent year-on-year (YoY) to RM33.41 million for the first quarter (Q1) ended June 30, 2022 from RM65.68 million in the same period last year.
This was dragged by lower revenue and pre-tax profit from the construction sector, IJM said today.
Revenue for the quarter rose 3.7 per cent YoY to RM1.07 billion from RM1.03 billion in the corresponding quarter last year driven by increase in revenue and pre-tax profit of property development, infrastructure as well as industry division.
IJM said its property development segment recorded an increase of 3.9 per cent and 3.8 per cent in revenue and pre-tax profit respectively due to higher work progress at its ongoing projects.
The industry division saw an increase in revenue and profit before tax by 52.6 per cent and 310.1% per cent respectively from higher deliveries of piles and ready-mixed concrete, coupled with improved margins from the piles business.
Revenue for infrastructure division increased by 30.4 per cent to RM210.1 million whilst pre-tax profit was down by 77.5 per cent to RM2.8 million compared to Q1 FY2022 mainly due to the net unrealised foreign exchange losses of RM33.0 million on its US Dollar denominated borrowings.
Despite the deteriorating global economy, the company expects a satisfactory performance for the current financial year, supported by the recovery in the Malaysian business landscape.
"Its balance sheet, with a net gearing of 27.8 per cent, is expected to bolster its competitive position to undertake large scale projects that are on a private finance initiative basis," it said in a statement.
It added in the near term, its performance would be supported by its outstanding construction order book of RM3.94 billion, property unbilled sales of RM2.2 billion and its balance orders of industrial concrete products piles of over one million tonnes.
IJM's toll operations had recovered to pre-pandemic levels while the performance of the port operations would be dependent on the global recovery, it added.