KUALA LUMPUR: IJM Corp Bhd saw its net profit for the fourth quarter ended March 31, 2014 (4QFY14) fall 87.3% year-on-year (y-o-y) to RM8.24 million, weighed down by its share of joint venture losses arising from the impairment of certain concession assets in India and Malaysia.
Its infrastructure division reported a pre-tax loss of RM199.4 million in 4Q, as the group wrote-off the goodwill in Indian toll highway operator Vijayawada Tollway Pte Ltd, and at the same time impaired its investment in Lebuhraya Kajang Seremban Sdn Bhd.
Nevertheless, for the full year ended March 31, IJM Corp still doubled its net profit to RM829.6 million or 59.06 sen a share from RM420.89 million previously, while revenue jumped 28.8% to RM6 billion from RM4.66 billion.
Its filing to Bursa Malaysia showed strong earnings in key operating segments such as construction, infrastructure and notably property development.
The construction division’s pre-tax profit increased 45.7% to RM168.2 million, while the infrastructure division’s expanded 126% to RM189.12 million (with fair value gains recognised in prior quarters more than offseting the impairment in 4Q) and the property division’s gaining 132% to RM748.66 million.
Property remains the largest earnings contributor to IJM Corp. Its listed property arm, IJM Land Bhd, saw its net profit more than doubled to RM533.23 million in FY14, from RM215.1 million previously, as revenue gained 63.7% y-o-y to RM2.05 billion during the financial year.
Apart from strong sales achieved and higher work progress, IJM Land also recognised an RM222.7 million gain on “remeasurement of interest” in subsidiary Radiant Pillar Sdn Bhd, which developed the flagship Bandar Rimbayu township near Kota Kemuning.
“With an unbilled sales of about RM2 billion, the group is expected to continue to deliver satisfactory performance for the new financial year,” said IJM Land.
Nevertheless, IJM Corp’s plantation arm, IJM Plantations Bhd, saw its net profit fall 25.9% to RM88.64 million in FY14, despite revenue coming in 33% higher at RM646.98 million from RM486.28 million previously.
“While the higher revenue recorded in the Indonesian operations was due to a larger area under maturity and the full year’s operation of the palm oil mill, the impact of unfavourable foreign exchange rates resulted in a loss during the financial year,” said IJM Plantation.
Yesterday, IJM Corp declared a total dividend payment of 21 sen per share, consisting of a second interim dividend of 11 sen and a special dividend of 10 sen, thus raising the total dividends declared in the financial year to-date at 25 sen. The entitlement of the 21 sen dividends is on June 12 this year. Its shares closed unchanged at RM6.60.
This article first appeared in The Edge Financial Daily, on May 28, 2014.