Gamuda reaps higher profit from MRT and property projects

KUALA LUMPUR: Gamuda Bhd reaped RM145.44 million in net profit for its first quarter ended Oct 31 (1QFY13), up 9.91% from the previous corresponding period's RM132.32 million on improved earnings from its construction and property divisions.

Its revenue was also up quarter-on-quarter (q-o-q) to RM771.34 million, against RM641.99 million a year earlier.

In a filing with Bursa Malaysia, Gamuda said the increase in profit before tax for 1QFY13 resulted from higher work progress from the Klang Valley mass rapid transit (MRT) project and the existing property projects in Malaysia, especially Horizon Hills in Iskandar Malaysia.

Its property division had unbilled sales of RM1.2 billion as at end-1QFY13.

Profit from its water and expressway concessions division this quarter was similar to the previous corresponding quarter.

Gamuda's construction division contributed 26% to the quarter's profit, while its property and water and expressway divisions  contributed 35% and 39% respectively.

For its outlook on the remainder of its FY13 ending July 31, Gamuda said it expects to improve its performance with the support of its ongoing construction projects, strong unbilled sales for the property division and steady earnings from the water and expressway concessions division.

As project delivery partner (PDP) for the Sungai Buloh-Kajang MRT line, Gamuda has tendered and awarded 54 works packages valued at RM20 billion to various contractors. Awards for tenders for 32 smaller works packages are expected to be completed soon.

"The project is rapidly advancing into the active construction phase. Work at various locations is progressing according to schedule," the company said in the filing.

Gamuda's electrified double-tracking railway projects are also progressing on schedule, the company said, with 89% of work completed.

The new Doha International Airport in Qatar, which was built by the company, has been completed.

Its basic earnings per share in 1Q improved to 6.99 sen against the 6.41 sen per share recorded in the same quarter last year.

No dividend was declared for this quarter.

This article first appeared in The Edge Financial Daily, on Dec 14, 2012.