KUALA LUMPUR (Aug 23): Taliworks Corp Bhd’s net profit rose 7.39% to RM12.57 million in the second quarter ended June 30, 2021, from RM11.7 million a year prior, despite recording a lower revenue.
In a bourse filing, the infrastructure group attributed the increase in profitability to higher contribution from its associate SWM Environment Holdings Sdn Bhd and joint venture, coupled with lower financing costs, following the redemption of an Islamic medium term note.
Quarterly revenue fell 18.64% to RM61.92 million from RM76.10 million in the previous second quarter, due to lower contributions from water treatment, supply and distribution and construction businesses.
But it was partly cushioned by higher revenue contribution from the toll highway business, thanks to a rise in average daily traffic.
Taliworks declared a second interim dividend of 1.65 sen per share, payable on Sept 30. This raises the total dividend payout for the current year to RM66.5 million or 3.30 sen per share.
For the first half year, the group’s net profit fell 9.61% to RM24.95 million, from RM27.61 million in the previous January-June period. Cumulative revenue shrank 20.46% to RM127.54 million, from RM160.36 million.
In a statement, Talikworks executive director Datuk Ronnie Lim said delivering profitability and enhancing the group shareholders’ values remain as the top priorities of its long-term plans.
“In this regard, we are thankful to still be able to present steady earnings and provide consistent dividend payout to our shareholders in the current quarter, despite the current economic challenges posed by the Covid-19 pandemic,” he said.
Lim said the group maintains a cautious positive outlook on Malaysia’s economy, given that the ramp up of the vaccination programme and the relaxation of the standard operating procedures as recently announced by the government may provide a good base to stabilise the country and aid economic recovery.
Taliworks’ share price closed unchanged at 83 sen today, for a market capitalisation of RM1.67 billion.