Gamuda’s revenue for the nine months ended 30 April 2024 grew 73% to reach the RM10 billion mark for the first time, excluding the disposed highway businesses, core net profit for the nine months ended 30 April 2024 rose 14% to RM640 million which it said was due to stronger overseas earnings of both construction and property divisions. Gamuda Engineering’s nine months revenue and net profit from overseas projects tripled.
The Group’s revenue for the nine months ended 30 April 2024 grew 73% to RM10 billion from last year’s RM5.79 billion. Total net profit fell 60% to RM640 million from RM1.59 billion in the same period the previous year, primarily because the previous year had recognised an exceptional gain from disposal of its highway operations.
Excluding the discontinued highway operations, core net profit rose 14% to RM640 million from last year’s RM563 million due to stronger overseas earnings of both construction and property divisions.
For the current quarter, revenue rose 82% to RM3.8 billion whilst quarterly net profit rose 6% to RM236 million. The Group’s revenue for the quarter ended April 2024 rose 82% to RM3.8 billion from last year’s quarterly revenue of RM2.08 billion whilst quarterly net profit rose 6% to RM236 million compared with RM223 million recorded in the same quarter the previous year as earnings growth from overseas projects comfortably offset the steep decline in domestic earnings.
Gamuda said the decline in domestic earnings was due to the completion of MRT2 project last year and the delay in regulatory approvals of several domestic projects such as Penang LRT and Upper Padas Hydroelectric Power Plant in Sabah.
As for outlook, the group anticipates that this year’s performance will be largely driven by overseas construction activities
as projects in Australia, Taiwan and Singapore continue to pick up pace, full year contribution of the newly acquired Australian transport projects business of Downer Transports Projects (acquisition completed in June 2023), construction of several data centres and property sales including higher contribution from newly launched quick-turnaround projects (QTP) of the property division.
Moving forward, the resilience of the Group is underpinned by a large construction orderbook of RM24 billion and unbilled property sales of RM6.7 billion. On top of that, the Group has a healthy balance sheet with a comfortable net gearing of 35%, well below its self-imposed gearing limit of 70%.
In the current quarter, the Board of Directors has declared a second interim dividend of 10 sen per ordinary share. The dividend date and the book closure date to be determined and announced at a later date. The total dividend for the current financial year to date is 16 sen per ordinary share.
