KUALA LUMPUR (Nov 25): IJM Corp Bhd reported a 21% decline in net profit to RM111.5 million in its second financial quarter ended Sept 30, 2014 (2QFY15) from RM140.3 million a year ago, mainly due to lower contribution from its construction division.

Revenue for 2QFY15 declined 8% to RM1.29 billion from RM1.41 billion a year ago. Earnings per share (EPS) was lower at 7.59 sen compared with 10.01 sen in 2QFY14.

In a statement today, IJM attributed the lower revenue for 2QFY15 to lower revenue from its construction unit.

"For the quarter, operational revenue growth was seen across all divisions except for the construction division which recorded revenue of RM270.1 million due to some major projects having been completed in the previous financial year while newer projects have yet to contribute significantly,” it said.

Meanwhile, its plantation, property, industry and infrastructure divisions reported year-on-year revenue growth of 16.5%, 16.8%, 6.8% and 30.9% respectively.

For the six months to Sept 30, 2014 (1HFY15), IJM’s net profit fell 20% to RM244.9 million from RM304.6 million a year ago, while revenue dropped 5% to RM2.67 billion from RM2.81 billion in 1HFY14.

EPS was lower at 16.8 sen compared with 21.83 sen in 1HFY14.

Nevertheless, IJM managing director and chief executive officer Datuk Teh Kean Ming expects the group to perform satisfactorily for the current financial year, backed by its healthy construction orderbook, high unbilled property sales and maturing plantation acreage.

Moreover, IJM said its industry division is well positioned to benefit from the expected increase in infrastructure spending under the Economic Transformation Programme initiatives.

IJM shares closed 11 sen lower at RM6.70 today, bringing its market capitalisation to RM9.98 billion.