Dijaya's 3Q net profit falls due to one-off gains last year

KUALA LUMPUR: Dijaya Corp Bhd's net profit for 3QFY10 ended Sept 30, plunged 83% to RM5.6 million from RM32.4 million, due to a large base effect in 3Q09, when the company had enjoyed one-off gains from the sale of assets and the reversal of provisions for diminution in value of its investment portfolio.

On top of that, its revenue fell 36.1% to RM62.2 million from RM97.3 million a year earlier. The company's earnings per share shrunk substantially to 1.2 sen versus 12.5 sen. No dividends were declared for the quarter under review.

Commenting on its quarterly financial results on Tuesday, Dijaya said despite higher revenue contribution from the rental of the Tropicana City Mall, the lower group revenue reported in the current quarter was mainly due to lower revenue from the ongoing property development projects. For the nine months, its net profit fell 81.3% to RM8.7 million from RM46.4 million. Revenue fell 9% to RM190.3 million compared with RM209.2 million a year earlier.

Dijaya said the significant drop in net profit was due to recognition of one-off gains during the nine months ended Sept 30, 2009.

"The group benefitted from recognition of gains from the disposal of land Mawar Hebat Sdn Bhd and the capital repayment on the group's investment in MTD InfraPerdana Bhd amounting to RM13.95 million. In addition, there was a write back of provision for diminution in value of investments of RM19.9 million," it said.

On the prospects of the property market, the property developer said given the prevailing economic market conditions, the directors opined that the property market remained very challenging and competitive.