KUALA LUMPUR: Gamuda Bhd saw its net profit for the first quarter ended Oct 31, 2014 (1QFY15) rise 12% to RM185.85 million from RM165.48 million in the same period last year, on higher contribution from its property, water and expressway concession divisions.

Revenue for 1QFY15 improved 17% to RM569.64 million, thanks to recognition of revenue from Kesas Sdn Bhd — the concession holder of the Shah Alam Expressway — the group told Bursa Malaysia yesterday. It also declared an interim dividend of 6 sen per share, payable on Jan 28, 2015.

On a segmental basis, the water and expressway construction contributed 47% to the group’s pre-tax profit in 1QFY15, followed by property development and club operations (31%), and the engineering and construction division (22%). As for its water and expressway construction division, Gamuda attributed the increase in revenue and pre-tax profit to higher contribution from its various expressways, particularly its additional stake in Kesas.

On property development, the group said the higher revenue and pre-tax profit were due to higher work progress from ongoing projects.

Gamuda said the declining revenue and pre-tax profit in its construction division, were due to the completion of the Electrified Double Tracking Railway Project in early November. On its outlook, the group anticipates a good performance this year, from ongoing construction projects, substantial unbilled sales of the property division, and steady earnings from the water and expressway concession division.

This article first appeared in The Edge Financial Daily, on December 17, 2014.