KUALA LUMPUR (May 26): IJM Corp Bhd’s net profit for the fourth financial quarter ended March 31, 2017 (4QFY17) jumped more than five times to RM236 million from RM44.23 million a year earlier.

This followed improved earnings at the group’s construction, property development, manufacturing and quarrying, and plantation divisions, the construction group said in a filing with the stock exchange yesterday.

Quarterly revenue swelled 43.03% to RM1.67 billion from RM1.17 billion in 4QFY16.

For the full financial year, net profit declined 17.61% to RM653.77 million, from RM793.59 million in FY16.

The group said this was mainly because the FY16 figure included one-off gains from the disposal of a 74% equity interest in Jaipur-Mahua Tollway Pvt Ltd and a 70% stake in Swarna Tollway Pvt Ltd, both in India.

Full-year revenue grew 18.27% to RM6.07 billion from RM5.13 billion in FY16.

The group has proposed a second interim dividend of 4.5 sen per share, payable on July 21.

Moving forward, the group said it expects a satisfactory performance for the coming financial year.

“The property market is expected to remain challenging given weaker consumer sentiment coupled with continued stringent mortgage approval and incoming supply of completed properties,” it said.

“Nonetheless, with unbilled sales of about RM1.7 billion, the group’s property development division is expected to maintain its performance in the coming financial year,” it added.

IJM’s share price closed one sen or 0.29% higher at RM3.50 yesterday, giving it a market capitalisation of RM12.66 billion.

This article first appeared in The Edge Financial Daily, on May 26, 2017.

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