KUALA LUMPUR (May 18): Pintaras Jaya Bhd saw its net profit for the third quarter ended March 31, 2016 (3QFY16) plunge 75.4% to RM3.39 million or 2.1 sen a share from RM13.78 million or 8.6 sen a share a year ago, on lower contribution from both the construction and manufacturing divisions.

In a filing with Bursa Malaysia, the company said revenue also dropped 49.48% to RM28.97 million in 3QFY16, from RM57.34 million in 3QFY15.

For the first nine months of financial year 2016 (9MFY16), net profit fell 68.74% to RM12.65 million or 7.8 sen a share, from RM40.47 million or 25.1 sen a share in 9MFY15; while revenue dropped 50.96% to RM95.95 million, from RM195.64 million in 9MFY15.

The company declared an interim single-tier dividend of 8 sen per share for the financial year June 30, 2016 (FY16), which will be paid on July 12, 2016.

In notes accompanying its results, Pintaras Jaya said the construction division recorded a much lower revenue of RM20.5 million in 3QFY16, compared to RM47.9 million in 3QFY15, and consequently, profit before tax (PBT) fell drastically by 93% to RM1.1 million, from RM15.3 million.

Construction activities dropped as projects reached completion stage and newly-secured projects are still at the initial stages of implementation, the company said.

In addition, some unexpected additional costs on a particular completed project also contributed to the decline, it added.

The manufacturing division recorded a revenue and PBT of RM8.4 million and RM1.4 million in 3QFY16, representing a decrease of 11% and 13% respectively, as compared to 3QFYF15.

The decline in the manufacturing division was brought on by competitive rates and higher operating expenditure, the company said.

As for year to date, the construction division recorded a sharp decline in PBT by 85% to RM7 million in 9MFY16, from RM45.5 million in 9MFY15, due to reduced construction activities, on the back of low balance of contracts in hand and lower margins achieved from a number of challenging projects.

The manufacturing division recorded a revenue and PBT of RM25.6 million and RM3.6 million in 9MFY16, representing a decrease of 7% and 20% respectively, compared to 9MFY15, due to lower sales volume and a downward revision of selling prices.

On prospects, Pintaras Jaya said it expects better results in the fourth quarter of FY16 with increasing revenue contributions from new projects, but the recent unexpected shortage and price escalation for steel reinforcement bars may have an impact on its profitability.

“The construction industry as a whole remains robust, on the back of accelerated implementation of various government-related infrastructure and property projects,” it said.

“Considering our present order book, the board can see a very busy year ahead, and expects a much high level of utilisation of our construction capacity,” it added.

Pintaras Jaya shares closed unchanged at RM3.53 today, with a market capitalisation of RM575.61 million.