MRCB 3Q net profit falls 79.4% on lower revenue

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) reported a 79.4% drop in its third quarter net profit on lower revenue, as well as higher finance costs and income tax expense.

Net profit for the three months ended Sept 30 (3QFY15) fell to RM5.64 million or 0.32 sen a share from RM27.39 million or 1.56 sen a share in 3QFY14.

MRCB saw its revenue for 3QFY15 fall 24.8% to RM374.06 million from RM497.26 million in 3QFY14. Finance costs rose 10.5% to RM44.46 million for the current quarter under review from RM40.22 million a year ago, while income tax expense doubled to RM18.75 million.

Nevertheless, for the cumulative nine months period (9MFY15), MRCB reported a 92.3% surge in net profit to RM303.6 million or 17.01 sen per share from RM157.91 million or 9.34 sen per share in 9MFY14, driven by the completion and sale of the group’s projects.

Revenue for 9MFY15 rose 27.3% to RM1.31 billion from RM1.03 billion in 9MFY14.

In a filing with Bursa Malaysia yesterday, MRCB attributed the higher profit and revenue to the completion of the Q Sentral development, the sale of Platinum Sentral and investment, and other ongoing projects including the Sentral Residences and 9 Seputeh. On prospects, MRCB said it is comfortable with its immediate prospects, as it continues to focus on its property development activities and actively tender for more construction contracts to grow its order book.

Click here to check out some properties at Sentral Residences.

This story first appeared in The Edge Property pullout on Nov 20, 2015, which comes with The Edge Financial Daily every Friday. Download The Edge Property here for free.