KUALA LUMPUR (May 31): Bina Puri Holdings Bhd (KL:BPURI) registered a net profit of RM13.84 million for the third quarter ended March 31, 2024 (3QFY2024) compared to a net loss of RM20.74 million a year earlier, due to gains arising from scheme of arrangements between the group’s unit and creditors.

Operationally, the group still incurred a gross loss of RM1.52 million for the quarter under review, versus a gross profit of RM466,000 a year ago, as costs increased more than revenue.

Revenue grew by 57.7% year-on-year to RM49.63 million for 3QFY2024 from RM31.47 million a year ago, while cost of sales increased 65% to RM51.14 million from RM31.01 million over the same period.

The construction and property development firm’s profitability was attributable to the positive impact of its wholly-owned unit Bina Puri Sdn Bhd’s (BPSB) scheme of arrangement with creditors, which usually involves taking haircuts from the amount owed.

The group booked a RM59.31 million “other operating income” for 3QFY2024, up from just RM2.83 million a year ago.

No dividend was declared for 3QFY2024.

"The improved performance of the group was mainly driven by the positive impact of the proposed scheme between BPSB and its scheme creditors," the group said in a statement on Friday.

"This scheme was approved by the High Court of Malaya on January 24, 2024 and it was necessary for the group to restructure its finances and revive its financial situation," it added.

Looking ahead, Bina Puri group managing director Kevin Chai said that after years of losses due to lacklustre construction sector and financial woes, the worst is over for the group as the industry appears much brighter underpinned by a strong pipeline of jobs both in the public and private sectors.

“We have successfully completed One Jesselton, Kota Kinabalu and 1Puri Commercial Centre, Kuching in the second half of the financial year (2H2024) and our focus remains on the completion of ongoing projects in a timely and efficient manner,” Chai said.

“We are also actively seeking out new business opportunities, not just to achieve financial stability and replenish our orderbook, but also to rebuild and revive Bina Puri as the construction and infrastructure behemoth that it once was,” he added.

Bina Puri ended one sen or 2.35% lower at 41.5 sen, valuing the group at RM276.8 million.