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Gamuda’s 2Q profit up 45%

KUALA LUMPUR: Gamuda Bhd’s second quarter profit ended Jan 31 (2QFY12) rose 45.15% y-o-y to RM136.47 million from RM94.03 million a year ago.

The group’s revenue increased 26.7% to RM769.33 million for the quarter from RM607.19 million in the previous corresponding period. Likewise, earnings per share rose to 6.6 sen from 4.59 sen before.

“The increases in profit before taxation for the current quarter and current year to date resulted from higher contributions from the construction and property divisions,” said the group in a statement.

For the six-month period ended Jan 31 (6MFY12), the group recorded RM1.41 billion in revenue, up 13.69% y-o-y while net profits climbed 47.24% to RM268.79 million from RM182.56 million in the same period the previous year.

Gamuda’s construction division had recently secured the underground works package from Mass Rapid Transit Corp Sdn Bhd (MRT Corp) via its 50% joint venture with MMC Corp Bhd. The underground works are valued at RM8.2 billion and comprises a 9.5km underground tunnel and seven underground stations.

Gamuda noted its JV is currently waiting for the official letter of award from MRT Corp.

Gamuda also said its electrified double tracking railway project was on schedule and 77% complete. Works for the Padang Besar-Ipoh section (Spine line) is due to complete in June 2014 whereas the section of works from Bukit Mertajam to Butterworth (Spur line) is scheduled to finish in November 2014.

The group attributed the increase in profit before tax for the construction division in the current quarter on the higher work progress of the electrified double tract project.

Meanwhile in Qatar, Gamuda noted that its New Doha International Airport project is substantially completed and is in the early stage of testing and commissioning.

The completed project is expected to be handed over to the client in July 2012.

In Hanoi, Vietnam, the Yen So Sewage Treatment Plant project is also nearing completion and is expected to be handed over to the client by May this year.

The group’s property division, Gamuda Land Sdn Bhd recorded sales of RM870 million, a 50% increase from RM580 million recorded in the same period the previous year. Meanwhile, unbilled sales at the end of the quarter increased to RM1.3 billion, said the group.

“Sales of landed properties in the Gamuda City project in Hanoi continued to receive strong response with sales in excess of RM120 million,” reported Gamuda.

Over in Celadon City located in Ho Chi Minh City, Vietnam, the group said sales remained sluggish in line with weak demand for apartments in the country.

“Nevertheless, the strategy is to build and then sell the apartments as the completed units will display the project’s superior masterplan and product designs,” said Gamuda, pointing out the completed units would also demonstrate the company’s commitment and financial strength to see projects to completion.

For the 6MFY12, Gamuda’s engineering and construction segments contributed 28% to the group’s profit before tax while the property development and club operations segment contributed 37%. Its water and expressway concessions provided the remaining 35%, down from 52% the previous year.

The group’s water and expressway concessions profits before tax were little changed from the previous year at RM122.9 million for its first two quarters ended Jan 31.

However, the group’s other two divisions — engineering and construction as well as property development and club operations segment — saw its profits roughly double y-o-y in the same period.

Gamuda closed down six sen or 1.6% to RM3.59.

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