Business Times
KUALA LUMPUR: Bintai Kinden Corporation Bhd, recorded a net profit of RM9.39 million for the fourth quarter (Q4) ended March 31 2024 to reverse the RM49.39 million net loss a year ago.
Group revenue stood a RM7.65 million for the fourth quarter ended March 31 2024, down 65.7 per cent from RM22.30 million in the corresponding period of the previous financial year.
The decline in revenue is primarily due to the completion of several mechanical and engineering projects in the previous quarter and a lack of new large-scale projects in the current quarter.
Despite the revenue decline, the company reported a pre-tax profit of RM10.73 million for 4Q, a significant improvement compared with a pre-tax loss of RM114.40 million previously.
"This turnaround is attributed to lower operating costs achieved through downsizing and cost-cutting measures, as well as gains from the reversal of impairment loss on contract assets and recognition of redeemable convertible preference shares acquired at nominal vafulll," it said.
For the full financial year, Bintai Kinden recorded a revenue of RM36.81 million, down 68.3 per cent from RM116.10 million in the previous year.
This was mainly due to the termination of 10 legacy Tenaga Nasional Bhd contracts and the absence of new major projects.
However, the company posted an encouraging pre-tax profit of RM5.05 million for FY2024 compared with a pre-tax loss of RM116.62 million in FY2023, driven by efficient cost management and strategic financial moves, including the recognition of fair value gains on contingent considerations and RCPS.
In January 2024, Bintai Kinden secured a RM58.6 million debt settlement plan from Kolej Teknologi Islam Melaka Bhd (KTIMB) as well as received shareholders' approval for a private placement exercise.
The interim settlement plan with KTIMB includes an immediate disbursement of RM1.5 million by Jan 30, 2024, and six RM250,000 monthly instalments.
Additionally, the company was granted shareholder approval and raised RM16.6 million through a private placement aimed at reducing bank borrowings and for working capital purposes.
Datuk Tay Chor Han, managing director cum chief executive officer, said Bintai Kinden's performance is primarily due to the successful completion of several M&E projects and efficient cost management measures.
"While the overall revenue has decreased, the company has managed to achieve significant cost savings and operational efficiencies, while phasing out legacy projects."
Tay expects improved revenue from its new projects.
In May, it had been awarded two M&E projects from Malaysia Airports Holdings Bhd and Taghill Projects Sdn Bhd respectively.
There were also several M&E tenders which we had participated and are still awaiting the outcome.
"Concurrently, we are also actively pursuing opportunities to diversify our business by tendering for civil and structural jobs and are expecting some job awards in the near future," he said.