KUALA LUMPUR: IJM Corp Bhd's net profit rose slightly more than threefold to RM93.69 million in the second quarter ended Sept 30, 2023 (2QFY24) from RM27.03 million in 2QFY23 buoyed by higher revenue.
Quarterly revenue rose 36.1 per cent year-on-year (YoY) to RM1.46 billion compared to RM1.07 billion in the same period last year.
This was due to higher contribution for the construction division which reported a notable increase in revenue of 54.9 per cent to RM416.2 million.
However, the division's pre-tax profit declined 37.3 per cent to RM15.3 million compared to the corresponding quarter last year, as profit margins on some ongoing projects were negatively impacted by increases in material and commodity prices, along with prolongation cost.
Additionally, profit recognition on new projects undertaken is pending until a certain physical completion milestone is achieved.
The property division reported higher revenue of RM463.7 million in Q2FY24, a 42.0 per cent increase from RM326.6 million registered in the corresponding quarter last year.
This was mainly due to higher work progress in ongoing projects and the completion of the sale of two parcels of industrial land in Bandar Rimbayu.
The industry division saw an increase in revenue of 21.9 per cent to RM316.0 million while revenue for the infrastructure division in the current quarter increased by 11.6 per cent to RM242.4 million.
For the cumulative six months, the company's net profit rose to RM194.33 million versus RM60.44 million a year ago.
Revenue for the period climbed 23.5 per cent YoY to RM2.68 billion from RM2.14 billion in the corresponding period last year.
Chief executive officer and managing director Lee Chun Fai said with the improving macroeconomy and pick up in construction activities, the company is well placed to grow its existing business, developing a portfolio in adjacent businesses and expanding its geographical footprint.
"IJM's balance sheet, with a net gearing of 0.27 times, is expected to bolster the group's credentials to undertake large scale projects and strategic investments.
"The group's construction order book replenishment prospects are encouraging and is supported by its outstanding order book of RM6.4 billion, which includes three recently secured construction contracts worth RM1.7 billion in the quarter under review – Package 2A and Package 2B of the Immigration Customs and Quarantine Complex (ICQC) for the Johor Baru-Singapore Rapid Transit System (RTS) Link project, the ECRL Kuantan Port spur line and an ancillary building at an industrial property project in Kulim, Kedah," he said.
He added the company's toll operations are expected to perform better in the current year with the absence of the higher maintenance, such as resurfacing costs incurred in the previous year.
"In line with the tariff increase which commenced on April 1, 2023 and the recovery of cargo throughput experienced in the first half of financial year 2024, the group's Kuantan Port operation is expected to deliver a better performance in the short term," he said.
IJM declared an interim dividend of 2.0 sen per share.