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Gamuda 2Q profit rises amid greater contribution from MRT2 project

KUALA LUMPUR (March 25): Gamuda Bhd saw its second quarter net profit inch up 1.17% to RM175.17 million from RM173.14 million a year earlier, on the back of contribution from the construction of the Mass Rapid Transport 2 (MRT2) line.

Earnings per share (EPS) for the quarter ended Jan 31, 2020 (2QFY20) rose to 7.07 sen, from 7.02 sen previously, the group said in a filing with Bursa Malaysia.

It said quarterly revenue declined 3.06% to RM1.09 billion from RM1.13 billion in 2QFY19.

Gamuda said its engineering segment’s profit rose due to greater profit from the construction of the MRT2 line. Meanwhile, its property development arm saw lower profits due to the higher upfront costs of newer townships in Malaysia.

It noted that its infrastructure concession was consistent due to “stable and resilient” traffic volumes on the expressways it controls.

For the cumulative six-month period, the group saw its net profit rise 1.05% to RM348.79 million from RM345.18 million in the previous corresponding period. Cumulative EPS rose to 14.09 sen from 13.99 sen.

Six-month revenue grew 7.76% to RM2.19 billion, from RM2.03 billion previously.

The group said it is anticipating its FY20 performance to be driven by its overseas property sales especially in Vietnam and the continued progress of the MRT2 line.

“There will be a great deal of uncertainty over the coming months due to the unfolding global health crisis, oil shock and turmoil in the financial markets affecting economic activity, investor confidence and consumer sentiment.

“The low oil price will also constrain the Government’s plans. In view of this, the group will remain prudent, while continuing to build resilience, navigating the change and to be fit and ready when the upturn ensues,” it added.

Shares in Gamuda closed 1.92% or five sen higher at RM2.65, valuing the group at RM6.66 billion. The counter saw 9.62 million shares traded today.

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