KUALA LUMPUR (Nov 21): IOI Properties Group Bhd's first quarter ended Sept 30, 2014 (1QFY15) saw a 9% on-year slip in its net profit to RM101 million from RM111.06 million, mainly due to lower contributions from its joint ventures and associates businesses, plus a higher interest expense.

Its earnings per share also slipped 9% on-year to RM3.12 from RM3.43, though revenue for the quarter rose 33.82% on-year to RM375.52 million from RM280.61 million, the group's filing with the local exchange today showed.

Operation wise, IOI Properties registered an operating profit of RM150.1 million in 1QFY15, 12.6% higher than RM133.26 in 1QFY14.

This was mainly contributed by its property development segment, where RM124.3 million or 82.81% of the group's total operating profit were derived. The better earnings came from higher sales contribution of completed properties, and advanced progress works from high-rise residential properties in the quarter under review.

On prospects, the group noted that the domestic property market remains challenging with more stringent criteria on loan approvals, coupled with the impending goods and services tax (GST) and a potential interest rate hike.

Nevertheless, IOI Properties foresees that there will be a surge in demand prior to the implementation of GST.

Therefore, it will continue to focus on affordable housing and landed properties moving forward, while it also expects to generate additional income from its investment property segment with the opening of IOI City Mall in Putrajaya yesterday (Nov 20).

IOI Properties closed the day two sen or 0.81% lower to RM2.45, giving it a market capitalisation of RM7.94 billion.