IJM Corp’s profit dropped 95.2% in 4Q

by TMR

IJM Corp Bhd’s profit for the fourth quarter ended March 31, 2018 (1Q18) dropped 95.26% year-on-year (YoY) to RM11.2 million or earnings per share (EPS) of 0.31 sen as against a net profit of RM236.00 million or EPS of 6.54 sen in 4Q17, mainly due to lower contributions from the group’s construction, property, manufacturing & quarrying, plantations and infrastructure divisions as well as the non recurrence of a one-off gain of RM123.1 million recognised in 1Q17 from the sale of a 32-acre land situated at the Light Waterfront Penang (Phase 2).

In an exchange filing yesterday, the diversified group noted the result was further compounded by a lower net unrealised foreign exchange gain of RM4.8 million in the current quarter as opposed to a gain of RM15.4 million in the corresponding quarter of the preceding year.

Revenue for the quarter dipped 16.17% YoY to RM1.40 billion on lower contribution from its property, manufacturing and quarrying and plantations divisions.

With an outstanding order book of RM9.4 billion and unbilled sales of about RM2.0 billion, IJM expects a reasonable performance for the coming financial year despite the constantly changing business environment, its filing noted.