KUALA LUMPUR: Bina Puri Holdings Bhd reported a net profit of RM14.38 million for the third quarter ended March 31, 2024 (Q3 FY24), breaking a streak of 16 consecutive quarters of losses, mainly driven by its construction segment.
In the same quarter of the previous fiscal year, the company registered a net loss of RM16.81 million.
Revenue for Q3 FY24 surged 57.68 per cent year-on-year to RM49.63 million.
For the nine-month period, Bina Puri reduced its net losses to RM11.15 million, compared to RM54.31 million the previous year, with revenue climbing 39.9 per cent to RM136.62 million over the same period.
The company attributed its improved performance to the positive impact of the proposed scheme between its wholly-owned subsidiary, Bina Puri Sdn Bhd (BPSB), and its scheme creditors.
This scheme, approved by the High Court of Malaya on January 24, 2024, was essential for restructuring the company's finances and reviving its financial situation, Bina Puri stated.
"The sluggish construction activities and a weak property market climate brought on by severe disruption to the overall operating environment caused by the implementation of the movement control order (MCO) have significantly impacted the financial performance in recent years," it said.
In the financial years 2020, 2021, and 2022, Bina Puri's construction division reported pre-tax losses of RM39.2 million, RM49.7 million, and RM33.3 million, respectively, contributing to overall net losses of RM10.4 million, RM62.4 million, and RM71.9 million.
The company said that the positive impact of the recently completed creditor scheme is now evident in its latest results.
For the nine months ending March 31, 2024, the construction sector recorded a pre-tax loss of RM10.57 million, a significant improvement from the RM64.49 million loss in the same period the previous year.
"After years of losses due to the lacklustre construction sector and the previous financial woes, the worst is over and the outlook for the industry appears much brighter, underpinned by the strong pipeline of jobs both in the public and private sectors," said group managing director Kevin Chai.
Chai said that Bina Puri will prioritise the timely and efficient completion of ongoing projects.
The company is also exploring new business opportunities to achieve financial stability, replenish its order book, and rebuild itself into the construction and infrastructure giant it once was.
Looking ahead, Chai expects satisfactory performance from the construction segment.
He said that the company will continue to exercise prudence in its business dealings and implement various measures to enhance operational efficiency, aiming for financial stability and sustainability across its operations.