IJM Corp Bhd booked a 48.2% year-on-year (YoY) dip in net profit to RM62.76 million for its first quarter ended June 30 this year (1Q19) due to foreign exchange (forex) losses and lower turnover from key businesses.
The conglomerate told Bursa Malaysia yesterday, it recognised higher net unrealised forex losses of RM71 million while revenue from construction, manufacturing and quarrying, plantations and infrastructure were lower for the quarter. Revenue slipped 1.4% YoY to RM1.44 billion.
The property business was the only segment which recorded increased revenue and earnings as it benefited from higher work progress, completion of several projects and higher profit margins. Going forward, IJM said the construction business will be supported by its RM8.8 billion outstanding orderbook but the property business is to remain challenging due to affordability issues and high-pricing of properties in the market.
The plantation division is bracing for a challenging year due to volatility of commodity prices, forex rates and higher borrowing costs while earnings from the infrastructure division will be boosted by its existing toll concession coming into maturity.