KUALA LUMPUR (May 26): IJM Corp Bhd saw a 54.98% year-on-year drop in its final quarter ended March 31, 2016 (4QFY16) at RM44.24 million from RM98.27 million, mainly due to lower contributions from the construction, property development, and manufacturing and quarrying divisions.

Further, the diversified conglomerate said in a Bursa Malaysia filing today that its bottom line was dampened by net unrealised foreign exchange losses.

Revenue for the quarter fell at a smaller quantum of 19.11% to RM1.17 billion from RM1.44 billion, as there were smaller year-on-year sales contribution from IJM Corp's property development, manufacturing and quarrying, plantation, and infrastructure businesses.

In a separate statement, IJM Corp declared a total dividend of seven sen a share, comprising a special dividend of three sen a share and a single-tier second interim dividend of four sen a share. In total, its dividends in FY16 amount to 10 sen a share.

"The total interim dividend of seven sen per share declared in FY16 represents an increase from the 15 sen per share last year, after taking into account the expanded share capital base due to new shares issued as part of the consideration for the privatisation of IJM Land Bhd and the subsequent one-for-one bonus share issue to reward shareholders in 2015," said its group chief executive officer and managing director Datuk Soam Heng Choon.

For the full year (FY16), IJM Corp's net profit grew by 65% to RM793.59 million from RM480.94 million a year earlier. Revenue, however, inched down by 5.87% to RM5.13 billion from RM5.45 billion, as its property development and plantation divisions brought in fewer sales.

IJM Corp said the bigger net profit in FY16 came mostly from extraordinary gains of selling its shares in Jaipur Mahua Tollway Pte Ltd and Swarna Tollway Pte Ltd, totalling RM301.9 million.

Its property division, which saw a 67.8% drop in pre-tax profit in FY16, is expected "to sustain its performance in FY17" as it is equipped with RM1.7 billion worth of unbilled sales, said IJM Corp, notwithstanding the softer real estate market in Malaysia currently.

The group said the property development segment's major drop in its pre-tax profit in FY16 was due to completed projects in the prior year, less sales made, and recognition of unrealised foreign exchange loss of RM30.9 million in 4QFY16.

There was also a one-off gain on re-measurement of existing equity interests in Larut Leisure Enterprise (Hong Kong) Ltd, and Valencia Terrace Sdn Bhd amounting to RM22.7 million that helped to boost its FY15 profit.

As for its construction division, IJM Corp said the segment is expected to perform satisfactorily, underpinned by a relatively strong private sector demand in the domestic market, substantial ongoing development activities from its in-house property development projects, and the government's continued emphasis on infrastructure spending.

The public sector's infrastructure-building is expected to benefit IJM Corp's industry division as well, said the conglomerate.

However, IJM Corp noted the El Nino weather had adversely impacted its plantation division's overall crop production.

"Although commodity prices have moved upward as a result of the anticipated tight supply, the Indonesian palm oil export levy and tax of US$53 per tonne continues to lower the revenue and profitability in that territory. As a result of the above factors and given the volatility of the foreign exchange rates, the group's plantation division expects a challenging financial year," it said.

All in all, "barring any unforeseen circumstances", IJM Corp said it expects a satisfactory performance for FY17.

Its counter fell by four sen or 1.15% to close at RM3.44, valuing IJM Corp at RM12.35 billion.