Glomac Bhd's net profit tripled to RM5.18 million for the first quarter that ended on July 31, 2022 (1Q FY23), from RM1.73 million a year earlier due to higher revenue contribution from increased sales and construction activities.
Revenue increased 127 per cent to RM65.5 million from RM28.84 million in the equivalent quarter a year earlier thanks to a stronger contribution from its property development business, according to a statement released today.
Glomac increased new sales from RM30 million in the first quarter of FY2022 to RM52 million in 1Q FY2023.
The company said that the full take up of its store offices at Lakeside Residences in Puchong, as well as the persistent demand for continuing township projects at Saujana Perdana and Saujana Utama 5, were the primary factors in the improved sales performance.
Since its introduction to the market in late-2021, RUMA33, the first launch at Saujana Utama 5, has been completely sold out.
The company's revenue also benefited from the continuing phases at 121 Residences, Plaza@Kelana Jaya, and Saujana Perdana.
Glomac said that the company's unbilled sales of RM512 million as of July 31 provide earnings visibility.
The balance sheet of Glomac is sound. The company has more cash and cash deposits as of July 31 than it did at the end of April 2022, totaling RM223.8 million.
Going forward, Glomac plans to increase profits by effectively launching its future new products and making steady progress on its current projects.
The company said it is aware there are underlying worries about inflation, a labour shortage, rising interest rates, and material costs that could impact the real estate industry.
"Longer-term prospects remain intact, underpinned by a healthy balance sheet and a strong pipeline of future development projects largely strategically located within the Klang Valley," the company said.