KUALA LUMPUR (June 29): Gamuda Bhd's net profit for the third quarter ended April 30, 2016 (3QFY16) fell 4.8% to RM152.69 million or 6.34 sen per share, from RM160.43 million or 6.81 sen per share a year earlier.
The group said earnings were affected by the softening of the domestic property market and tapering of underground and elevated works for the Klang Valley Mass Rapid Transit (KVMRT) Line 1 project.
Revenue fell 15.6% to RM467.29 million, from RM553.78 million in 3QFY15, Gamuda said in a filing to Bursa Malaysia today.
The group declared a second interim dividend of six sen per share, payable on July 28, bringing year-to-date payout to 12 sen per share.
Gamuda said net profit for the first nine months of FY16 fell 10.3% to RM474.04 million or 19.69 sen per share, from RM528.46 million or 22.58 sen per share in 9MFY15.
Revenue for the period fell 15.2% to RM1.51 billion, from RM1.78 billion.
Going forward, the construction outfit anticipates a good performance from on-going construction projects and steady earnings from the water and expressway concessions division.
This is despite the expected weaker growth at its property division over the coming quarters, arising from the softening residential and non-residential property market.
The property division recorded sales of RM190 million during the current quarter, resulting in total sales of RM575 million for the 9MFY16.
"Sales is expected to pick up in the next few quarters, due to the launches of several new projects in Malaysia and overseas," it said.
Its unbilled sales at end of the current quarter, was at RM1 billion.
Gamuda said KVMRT1 was 86% complete as at end of May, and is on track for full completion by July 2017, with no significant cost overruns so far.
"The underground works package has achieved a progress of 88% at the end of May," it added.
Shares of Gamuda closed at RM4.81 today, up one sen or 0.21% after 2.37 million shares exchanged hands. The group had a market value of RM11.6 billion.