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Econpile 1Q net profit down 41% due to lower billings, narrower margin

KUALA LUMPUR (Nov 28): Econpile Holdings Bhd did not fare that well in the first financial quarter ended Sept 30, 2019 (1QFY20) due to lower billings and higher percentage of billings from infrastructure projects that yield narrower margin.

The piling company's net profit came in at RM8.84 million in 1QFY20, down 41.2% from RM15.04 million in the previous corresponding quarter. Quarterly revenue shrank to RM135.3 million in 1QFY20 from RM200.2 million a year ago, according to its filing to Bursa Malaysia yesterday.

Earnings per share dropped to 0.66 sen in 1QFY20 against 1.12 sen a year ago.

"The decrease in revenue is due mainly to lower billings in the current quarter as two major property development projects [are] nearing completion stage coupled with lower billings from infrastructure projects.

"The drop in profit margins is in line with the higher percentage of billings from infrastructure projects which yield a lower margin." Econpile explained.

It noted that as at Sept 30, there were 25 ongoing projects at various stages of completion. The company's order book stood at approximately RM900 million.

Econpile share price has doubled to 79 sen year to date, giving it a market capitalisation of RM1.05 billion.

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