KUALA LUMPUR (Dec 16): Gamuda Bhd saw its net profit fall 13% to RM161.23 million or 6.7 sen per share for the first quarter ended Oct 31, 2015 (1QFY16), from RM185.85 million or 8 sen per share a year ago, due to the softening of the Malaysian property market.

Revenue for the quarter declined 10% to RM512.80 million from RM569.64 million in 1QFY15.

Gamuda declared a first interim dividend of 6 sen per share for the financial year ending July 31, 2016, payable on Jan 29, 2016.

In its filing with the exchange, Gamuda said the lower profit was mainly due to the completion of the electrified-double tracking railway project in November and the dampened local property market.

Segmentally, the group said its construction division saw higher revenue due to higher work progress in the Klang Valley Mass Rapid Transit (KVMRT) – Line 1 project, while profit was lower due to the completion of the railway project.

Its property division saw lower profit and revenue for the quarter due to the weak market, but sales in Vietnam continued to improve, said Gamuda.

Meanwhile, its water and expressway concessions division reported lower profit due to costs of periodic resurfacing works for expressways in India.

Going forward, Gamuda anticipates good performance for the remainder of its financial year, driven by ongoing construction projects and steady earnings from the water and expressway concessions division.

"However, with the softening residential and non-residential property market in Malaysia, weaker growth for the property division is expected over the coming quarters," it added.

Gamuda rose 2 sen or 0.46% to close at RM4.40, giving it a market capitalisation of RM10.54 billion. -- theedgemarkets.com

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