KUALA LUMPUR, Aug 24 — IJM Corporation Bhd’s net profit fell almost half to RM33.41 million in its first quarter ended June 30, 2022 (Q1FY2023) from RM65.68 million in the previous corresponding period due to unfavourable foreign currency movements.
Revenue, however, rose 3.7 per cent to RM1.07 billion from RM1.03 billion, it said in a filing to Bursa Malaysia today.
IJM said revenue for the manufacturing and quarrying division surged 52.6 per cent in Q1FY2023 due to higher deliveries of piles and ready-mixed concrete, coupled with improved margins from the piles business, while the property development’s revenue was up by 3.9 per cent in the first quarter mainly due to higher work progress at its ongoing projects.
The revenue for the infrastructure segment increased by 30.4 per cent, driven by higher toll revenue locally and overseas, but pre-tax profit decreased by 77.5 per cent amid net unrealised foreign exchange losses of RM33 million on its US dollar denominated borrowings compared to an RM2.3 million loss in Q1FY2022.
Meanwhile, the construction division’s revenue decreased by 28.9 per cent due to lower construction activities as a result of certain projects being completed in the previous financial year.
IJM said the performance of the construction segment will be underpinned by its outstanding order book of RM3.94 billion.
“The roll-out of large-scale infrastructure projects by the government is also expected to bolster its order book replenishment.
‘’Market sentiment for the property sector had remained healthy for Q1FY2023,’’ it said, adding that the property division is expected to deliver a satisfactory performance for the financial year with its wide array of highly sought-after products in strategic locations and its unbilled sales of about RM2.2 billion.
With a strong order book in hand, the industry business is expected to deliver a strong performance, while its toll operations have recovered to pre-pandemic levels and the group is optimistic about a stronger financial performance for the financial year. — Bernama
