Glomac’s 3Q profit dragged by property investment

The group expects its performance for FY21 to remain challenging as the industry is adversely impacted by Covid-19

by TMR / pic by TMR

GLOMAC Bhd saw its net profit for the third quarter ended Jan 31, 2021 (3Q21), fall by 4% to RM11.66 million from RM12.14 million the year prior attributed to lower income from its property investment segment.

Its revenue for the quarter, however, saw an increase of 34% to RM99.39 million versus RM74.02 million due to further work progress of its ongoing projects such as Saujana Perdana located at Bandar Saujana Utama, Plaza @ Kelana Jaya, Saujana Rawang, Lakeside Boulevard and 121 Residences.

On a year-to-date (YTD) basis, its net profit stood at RM23.54 million compared to RM21.19 million registered in the corresponding period the year prior. Its YTD revenue was also higher at RM250.88 million versus RM187.41 million a year ago. The group expects its performance for the financial year ending April 30, 2021 (FY21), to remain challenging as the industry is adversely impacted by Covid-19 and the various phases of the Movement Control Order.

“Notwithstanding the above, the group has taken certain steps to circumvent and mitigate the challenges. The group is also backed by a sustainable level of unbilled sales of RM611 million and a pipeline of new launches for the financial year,” it said.

The group added that its financial position remains robust, underpinned by a cash position of RM199.3 million.

“This puts the group in a favourable position while providing ample liquidity to further drive its development activities. As at Jan 31, 2021, net assets per share stood at RM1.45,” the group noted in a statement.

The group’s project pipeline will also be anchored by a strong portfolio of prime development landbank with an estimated gross development value (GDV) of RM8 billion.

Despite the challenges brought about by Covid-19, Glomac achieved new sales of RM59 million in the current quarter, driven by the strong sales performance of Tresna Triandra and Mawar Sari in Saujana Perdana.

The double-storey terrace houses were launched in July and November last year, and are well appreciated by the market, achieving the latest take-up rates of around 90% for the respective months.

Operationally, the group is on course to complete construction and hand over keys to the buyers of Tresna Teruntum, Saujana Perdana in April 2021.

Looking forward to the final quarter of FY21, Glomac will focus on operational improvements to ensure smooth construction progress that will enable the timely delivery of ongoing projects, it said.

Additionally, accelerating sales and improving conversion also remain a key focus for the group as it aims to close FY21 on a better footing.