IJM Land net profit down 19.4% to RM30m for 2Q

KUALA LUMPUR: IJM Land Bhd's net profit fell 19.4% to RM30.06 million for its second quarter (2Q) ended Sept 30, 2010, from RM37.3 million a year ago on the back lower revenue, the group announced to Bursa Malaysia on Tuesday, Nov 23.

Revenue fell by 30% to RM304.2 million from RM212.9 million due to the completion of the contract to build a retail centre in SS2, Petaling Jaya a year ago while construction works for its new launches are in the early stages this quarter.

Nonetheless, the decline in net profit was cushioned by better profit margins from its current ongoing projects.

On a quarterly basis, the group's revenue fell by 42% from RM364.95 million in 1Q due to the encouraging take-up rate of Lot 28 shops in Penang as well as the sale of units previously reserved for bumiputeras to the public for nearly-completed projects such as Platino and Summer Palace in Penang and Ampersand in Kuala Lumpur.

IJM Land expects its performance to be satisfactory this financial year underpinned by its strong unbilled sales.

The group is also anticipating better sales from its continued efforts to improve its corporate branding and quality customer care in addition to a positive economic outlook, but expected a momentary slump in sales due to the new loan-to-value ratio of 70% for third houses.

Its basic earnings per share stood at 2.72 sen, down from 3.38 sen a year ago.