Gamuda posts record-breaking net profit of RM806m, backed by strong overseas earnings

by AUFA MARDHIAH / pic source:

GAMUDA Bhd pre-tax profit crossed the RM1 billion mark for the first time as it posted a record-breaking net profit of RM806.23 million for the financial year ended July 31, 2022 (FY22), up 37% from last year, on the back of stronger construction and property earnings as works on all fronts continued to pick up pace.

In the fourth quarter ended July 31, 2022 (4Q22), the company posted a net profit of RM255.24 million, up 19.9% from RM212.88 million the same period last year.

It reported a turnover of RM4.92 billion for FY22, up 50.5% from the previous year. For the 4Q22, it posted a revenue of RM1.87 billion, up 124% from RM835.95 million in the same period in FY21.

At the group level, it posted revenue of RM6.5 billion, a 29% jump from last year’s RM5 billion revenue, a record-breaking year for the property division with all-time-high performances in sales, revenue and earnings.

Pursuant to the Malaysian Financial Reporting Standard (MFRS) 11 (Joint Arrangements), the revenue of joint venture companies like KVMRTElevated & Systems works and Horizon Hills are excluded from Gamuda group’s consolidated income statement. Instead Gamuda only recognises its share of profits of the joint venture companies, according to its notes in its filing.

Overseas earnings tripled to RM292 million compared with last year’s RM98 million as the group continues to expand its footprint to broaden its international market reach, in said in an exchange filing yesterday.

Gamuda said its property division sold a record high RM4 billion worth of properties, a 40% jump compared with last year’s RM2.9 billion sales.

Local property sales doubled to RM2 billion as overseas projects contributed another RM2 billion in sales. Property revenue reached an all-time-high of RM2.7 billion, 111% jump compared with last year’s RM1.3 billion while property earnings reached an all-time-high of RM340 million, 97% jump compared with last year’s RM172 million.

Gamuda anticipates that next year’s performance will be driven by property sales, pick up in work progress of Sydney Metro West – Western Tunnelling Package & Coffs Harbour Bypass projects in Australia and works to complete the MRT Putrajaya Line (formerly called MRT Line 2) following the sale of four highways to ALR by October 2022.

Moving forward, it said the resilience of the group is underpinned by its large construction orderbook of nearly RM14 billion and unbilled property sales of RM6.2 billion. On top of that, it said the group has a healthy balance sheet with a currently low gearing of 0.1 time which will turn net cash positive upon completion of the highway sale.