• The group’s construction and property earnings grew 35% to RM195 million in 1QFY2024, compared with 1QFY2023’s earnings of RM145 million.

KUALA LUMPUR (Dec 6): Gamuda Bhd recorded a net profit of RM195.04 million in the first quarter ended Oct 31, 2023 (1QFY2024), compared to RM1.168 billion a year ago.

The significant discrepancy in net profit is due to the earnings of RM1 billion from the sale of highways last year.

Earnings per share also slipped to 7.26 sen compared to 45.32 sen, the construction giant said in a bourse filing on Wednesday.

Quarterly revenue doubled to RM2.8 billion from RM1.3 billion in the previous corresponding quarter, on the back of higher contribution from overseas projects, as overseas revenue tripled to RM2.1 billion.

The group’s construction and property earnings grew 35% to RM195 million in 1QFY2024, compared with 1QFY2023’s earnings of RM145 million.

On a quarterly basis, the group’s net profit came in 23% lower against the RM252 million reported in the immediate preceding quarter (4QFY2023), mainly due to lumpy property earnings in 4QFY2023.

Gamuda declared a single-tier interim dividend of six sen per share, to be paid at a later date.

Touching on prospects, Gamuda anticipates that this year’s performance will be driven by overseas construction activities, with projects in Australia and Taiwan gaining momentum.

Additionally, the full-year contribution of the newly acquired Australian transport projects business of Downer Transports Projects and property sales, including higher contributions from newly launched quick-turnaround projects (QTP) of the property division, will play a significant role.

“Moving forward, the resilience of the group is underpinned by a large construction order book of RM26 billion, and unbilled property sales of RM6.7 billion,” it said.

The group also highlighted that it has a healthy balance sheet with a comfortable net gearing of 25%, well below its self-imposed gearing limit of 70%.

Shares in Gamuda closed one sen or 0.23% lower at RM4.41 on Wednesday, giving the group a market capitalisation of RM11.9 billion.

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