KUALA LUMPUR (Feb 23): IJM Corp Bhd’s net profit fell by 24% to RM74.78 million in the third quarter ended Dec 31, 2022 (3QFY2023) from RM98.44 million posted a year ago dragged by the construction sector due to high share of losses from its Singapore associate and unrealised foreign exchange losses.

Quarterly revenue fell 13% to RM1.1 billion from RM1.27 billion a year ago mainly due to lower construction activities as some major projects were completed in the previous financial year, whilst new projects secured are presently in their initial stages of progress, the company said in a filing with Bursa Malaysia on Thursday (Feb 23).

The group’s net profit for the first nine months (9MFY2023) plunged 83.3% to RM135.22 million from RM793.42 million, as there was a RM749.82 million profit contribution from discontinued operations corresponding period last yea (9MFY2022).

Revenue for 9MFY2023 increased 2.1% to RM3.25 billion from RM3.18 billion.  

IJM’s property segment revenue for 3QFY2023 decreased marginally by 2.4% compared with 3Q FY2022, whilst revenue for 9MFY2023 increased by 19.3% compared with 9MFY2022, mainly attributable to higher work progress at its ongoing projects.

The group’s infrastructure revenue for 3QFY2023 and 9MFY2023 increased by 7.8% and 24.3% respectively compared with the same  preceding periods, driven mainly by higher toll revenue recorded both locally and overseas.

Its manufacturing and quarrying segment registered lower revenue for 3Q FY2023, whilst revenue for 9MFY2023 increased by 19.4% compared with 9MFY2022 mainly due to higher deliveries of piles, quarry products and ready-mixed concrete.

On outlook, the group expects to deliver better performance for FY2023 underpinned by performance in its construction division which has an outstanding order book of RM4.6 billion.

The group added its replenishment of its order book will depend on the roll-out of large-scale infrastructure projects by the government.

“Despite the rising inflation rate and interest rate environment, the market sentiment for the property sector had remained healthy for 9MFY2023. With a wide array of highly sought after products in strategic locations and its unbilled sales of about RM3.4 billion, the property division is expected to deliver a better performance for the financial year,” the group said.

At 5pm shares of IJM closed 0.64% or 1 sen higher at RM1.58, giving the company a market capitalization of RM5.76 billion.