Glomac 2Q net profit surges 63% as construction activities resume

KUALA LUMPUR (Nov 26): Glomac Bhd’s net profit surged 62.95% to RM9.11 million in the second quarter ended Oct 31, 2020, from RM5.59 million a year ago, driven by the resumption of construction activities post-lockdown.

The profitability, however, was partially mitigated by higher income tax expenses, which more than doubled to RM4.57 million from RM6.23 million, the group said in a filing yesterday.

Revenue for the quarter rose 70.07% year-on-year to RM104.61 million from RM61.51 million.

On a quarter-to-quarter basis, Glomac's net profit more than tripled from RM2.78 million in the first quarter, while revenue rose 33.61% from RM46.87 million.
Glomac said revenue from the property development segment increased 81% to RM99.52 million, from RM55.13 million in the first quarter.

This better performance was mainly the result of further work progress from new and ongoing phases such as Saujana Perdana located at Bandar Saujana Utama, Plaza @ Kelana Jaya, Saujana Rawang and 121 Residences.

For the cumulative six-month period ended Sept 30, Glomac’s net profit rose 32.76% to RM11.88 million from RM9.05 million a year ago, as revenue climbed 33.61% to RM151.49 million from RM113.38 million.

The group said its performance for the financial year ending April 30, 2021 (FY21) is expected to remain challenging, as the industry is adversely impacted by Covid-19 and various phases of Movement Control Order (MCO).

Glomac said its revenue is expected to continue to be backed by strong unbilled sales of RM649 million, unless the Covid-19 and Conditional MCO continue to persist.

Glomac’s share price closed unchanged at 30.5 sen yesterday, valuing the group at RM234.5 million. Some 400,300 shares were traded.

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