KUALA LUMPUR (Aug 28): IJM Corp Bhd (KL:IJM)’s net profit for the first quarter ended June 30, 2024 (1QFY2025) fell 13.68% to RM86.88 million from RM100.64 million a year earlier, dragged mainly by unrealised foreign exchange and fair value losses, despite better revenue reported in the quarter under review.

It recorded an unrealised foreign exchange loss of RM1.4 million in 1QFY2025, as opposed to an unrealised foreign exchange gain of RM41.7 million in 1QFY2024, as well as a fair value loss on WCE Holdings Bhd's warrants of RM19.9 million.

“Adjusting for these factors, the group’s pre-tax profit increased by 26%,” it said in a statement.

Earnings per share dipped to 2.48 sen in 1QFY2025, versus 2.87 sen in 1QFY2024. Quarterly revenue rose 14.56% to RM1.4 billion from RM1.23 billion. No dividend was declared for 1QFY2025.

IJM group chief executive officer and managing director Datuk Lee Chun Fai said the group is well-positioned with a robust balance sheet to build upon the group's positive operating momentum. The group said it had a strong cash reserves and a healthy net gearing ratio of 0.29 times that provides resilience and capacity to undertake large scale projects.

“The replenishment of our order book across the construction and industry divisions remains promising, buoyed by sustained consumer confidence in the property market, robust cargo volumes at Kuantan Port and stable traffic at its toll concessions," said Lee.

Its outstanding construction order book stood at RM6.5 billion while the property segment recorded unbilled property sales of RM2.3 billion, providing support to the group’s outlook in FY2025.

As for the group's highly anticipated The Light City project in Penang, its first phase is expected completed by mid-2025. Once completed, the mixed-commercial development will have Penang’s largest conventional centre (Penang Waterfront Convention Centre) and a retail mall called The Waterfront Shoppes, the group said.

Shares in IJM dipped three sen or 1% to close at RM3.12 on Wednesday, giving the group a market capitalisation of RM11.38 billion. Year to date, the stock has rallied 66%.