KUALA LUMPUR (March 25): Building and infrastructure construction company TCS Group Holdings Bhd has secured a contract worth RM140.27 million to undertake building works for a proposed commercial complex known as Bandar Seri Coalfields Retail Park in Sungai Buloh, Selangor.

TCS accepted the project through its wholly-owned subsidiary, TCS Construction Sdn Bhd, which received the letter of award from KLK Retail Centres Sdn Bhd — a wholly-owned subsidiary of Kuala Lumpur Kepong Bhd, as shown in TCS’s bourse filing.

TCS stated that the contract period will be 19 months, commencing from March 2024 with the expected completion by October 2025. 

TCS managing director Datuk Tee Chai Seng expressed cautious optimism about the long-term prospects of the group and said the "contract enhances our current outstanding order book and strengthens our earnings visibility for the coming financial years". 

"The group is positive about the outlook of the construction industry, backed by strategic infrastructure, utilities projects, and the acceleration of projects under the 12th Malaysia Plan, 2021-2025," he added.  

For its fourth financial quarter ended Dec 31, 2023 (4QFY2023), TCS, which has been making losses for three consecutive quarters, saw its net losses widen to RM14.75 million, compared with a net profit of RM349,000 recorded in the same quarter last year. The losses were attributed to higher raw material costs caused by supply chain disruptions. 

However, revenue increased to RM114.53 million from RM84.81 million in the corresponding period of the preceding year.

TCS shares ended unchanged at 13 sen, valuing the group at RM55.77 million.