KUALA LUMPUR: WCT Holdings Bhd saw a 71 per cent jump in net profit to RM41 million for the third quarter ended 30 September 2017, from RM24 million registered in the corresponding quarter last year.
Revenue for the quarter was also higher at RM470 million from RM414 million previously.
The Group’s net profit for the first nine months of its 2017 financial year increased 47 per cent to RM95 million from RM65 million a year ago.
The improved net profit came despite lower revenue of RM1.33 billion compared with RM1.48 billion registered in the corresponding period last year, which is reflective of the Group’s ability to drive more significant profit margin from its on-going local construction jobs.
“The Group’s improved performance was mainly due to stronger contribution from local construction projects. In addition, our continued focus on enhancing profit margin from our construction jobs, through greater efficiencies and better cost management, had impacted our bottom-line in a positive manner,” group managing director Datuk Lee Tuck Fook said in a statement.
He said the Group also saw positive contribution from the Property Development and Investment Division.
“In view of the challenging operating landscape, we had intensified our sales and marketing efforts to promote our existing property offerings as opposed to launching more products into the market.”
For the first nine months, WCT’s Engineering and Construction Division recorded an operating profit before finance costs and tax of RM100 million on the back of a revenue of RM928 million.
The Group’s Property Development Division recorded an operating profit before finance costs and tax of RM48 million on the back of RM349 million revenue.
The Group’s Property Investment and Management Division recorded an operating profit before finance costs and tax of RM24 million on the back of a revenue of RM50 million. The Group’s share of profit after tax arising from Property Investment and Management under joint ventures amounted to RM18 million.
“Looking ahead, our Engineering & Construction Division is expected to continue to perform well due to its strong order book. In the current financial year, the Group had successfully secured new infrastructure contracts totaling approximately RM1.8 billion,” said Lee.
“We also expect the construction industry to remain vibrant in the foreseeable future, reinforced by the Government’s continuing initiatives as announced during the recent Federal Budget 2018. This will augur well for our Engineering & Construction Division, which remains the primary income generator for the Group.”
Basic earnings per share for the current year to date increased to 7.04 sen compared with 5.23 sen recorded in the preceding year corresponding period.