KUALA LUMPUR (Nov 26): IJM Corp Bhd's net profit plunged 80.81% to RM21.92 million in the group's second quarter ended Sept 30, 2018 (2QFY19) from RM114.23 million a year ago, on the back of lower revenue and higher foreign exchange (forex) losses.

In a filing to Bursa Malaysia, it said net unrealised forex loss rose to RM33.5 million from RM400,000 a year earlier.

Earnings per share fell to 0.6 sen in 2QFY19 from 3.15 sen a year earlier.

Revenue for the quarter was down 18.13% to RM1.31 billion from RM1.6 billion a year earlier as the group's construction, property development, manufacturing and quarrying, as well as plantations divisions posted lower contributions.

According to IJM, newer projects in its construction division have yet to reach their optimal construction phase. Meanwhile, the property development sector recorded lower sales and lower margins in 2QFY19, which were also seen in the manufacturing and quarrying sector.

Its plantations division was affected by lower crude palm oil sales volume and commodity prices, while the group's infrastructure division registered losses accrued for the disposal of its remaining 30% stake in Swarna Tollway Pte Ltd in the current quarter.

IJM proposed a single tier first interim dividend of 2 sen per share, payable on Dec 27, 2018. This compares with a dividend of 3 sen per share a year ago.

For the six-month period ended Sept 30, 2018 (1HFY19), IJM's net profit declined 64.03% to RM84.68 million from RM235.4 million in the previous year's corresponding period.

Revenue in 1HFY19 fell 10.03% year-on-year to RM2.75 billion from RM3.06 billion.

Going forward, IJM expects continued growth in its construction division based on an outstanding order book of RM8.8 billion.

The group's property division has unbilled sales of about RM2 billion and is expected to deliver a satisfactory performance in FY19, it said.

"Given a difficult operating environment both domestically and overseas, the group's (manufacturing and quarrying) division expects a lower performance for the current financial year," IJM noted, adding that its plantations segment would also face challenges from weak commodity prices and volatile forex rates.

"The group's toll and port operations continue to provide recurrent revenue streams as existing concessions mature thereby further enhancing the earnings of the group's infrastructure division," it said.

Shares in IJM closed unchanged at RM1.82 today, leaving the group with a market value of RM6.62 billion.