KUALA LUMPUR (Nov 27): Construction player Widad Group Bhd widened its losses by more than nine times to RM7.65 million in the third quarter ended Sept 30, 2023 (3QFY2023), from a loss of RM836,000 a year ago, mainly due to higher finance cost arising from borrowings made to acquire a concession business.

This is despite revenue more than doubling to RM56.62 million from RM26.83 million in 3QFY2022, its Bursa Malaysia filing on Monday showed.

Widad said its gross profit margin was lower compared to the preceding year's corresponding period mainly due to high concentration on construction business which is on a low margin regime and the impact of rising cost of labour and materials since the beginning of the year.

Widad's construction segment contributed 82.6% of the group's revenue during the quarter, whereas the remainder was contributed by its integrated facility management segment.

For the nine-month period ended Sept 30, 2023, Widad incurred a net loss of RM6.68 million compared with a net profit of RM12.90 million in the same period last year, while revenue increased 17% to RM150.26 million from RM128.37 million.

Looking ahead, Widad said it has an orderbook totalling RM1.6 billion, comprising RM722.3 million from the construction segment and RM902.9 million from the integrated facility management and concession segment.

"The group continues to actively participate in both government and private tenders, submit development proposals and explore business opportunities in order to enhance its orderbook. In ensuring improved profitability, the group steers the business operations towards efficiency, productivity and cost competitiveness," it added.

Widad's shares were unchanged at 46.5 sen at Monday's market close, giving the group a market capitalisation of RM1.42 billion.