Eversendai 3Q net profit jumps 186% as revenue climbs

KUALA LUMPUR (Nov 27): Eversendai Corp Bhd's net profit for its third quarter ended Sept 30, 2017 (3QFY17) rose 186% to RM20.83 million from RM7.28 million a year ago, as quarterly revenue climbed 21%.

Interest income, which ballooned to RM759,000 from RM67,000, and higher dividend income of RM3.41 million versus RM2.45 million previously, and lower operating and administrative expenses of RM28.71 million versus RM30.32 million previously, also lifted earnings.

Revenue came in at RM449.32 million versus RM371.36 million a year ago, its Bursa Malaysia filing showed, on higher contributions from its structural steel and construction businesses in India, Thailand and Singapore, while it recorded lower losses from consolidation adjustment and eliminations.

In the first nine months of FY17 (9MFY17), the group returned to black with a net profit of RM56.7 million, from a net loss of RM64.43 million a year ago, as revenue gained 6% to RM1.31 billion from RM1.23 billion.

In the cumulative period, other income, which grew 129% to RM16.7 million from RM7.3 million, and higher dividend income of RM1.36 million versus RM244,000 also lifted earnings. Operating and administrative spending also lowered to RM104.97 million from RM112.73 million.

"Moving forward, we are working towards expanding our presence in Singapore, United Kingdom and Australian markets. Expansion into markets with stronger currency is projected to make the bottom line stronger," said Tan Sri AK Nathan, Eversendai's executive chairman and group managing director, in a separate statement.

Eversendai has bagged RM1.6 billion new contracts to date in 2017, bringing its order book to approximately RM2.7 billion, the group said.

The bulk of these contracts are from the Middle East at 44%, while 21.8% are from India and 19.1% are from Southeast Asia. The remaining 15% are from the oil and gas sector.

Shares in Eversendai rose 1.67% or 1.5 sen to 91.5 sen today, giving the group a market capitalisation of RM714.71 million. — theedgemarkets.com

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