PETALING JAYA: Malaysian Resources Corp Bhd (MRCB) posted a net profit of RM15.65 million in its first quarter ended March 31, 2020, a 3.78 times increase from RM4.14 million reported in the corresponding quarter of the previous year mainly due to the revenue recognition from its development in Melbourne, Australia as well as construction progress from Sentral Suites development in KL Sentral.
Revenue for the period stood at RM425.75 million, a 81.9% increase from RM234.05 million reported previously.
Its property development & investment division saw a five-fold increase in operating profit to RM20.6 million in Q1’20 compared to RM3 million in Q1’19.
Its engineering, construction & environment division posted a lower operating profit of RM12.6 million for the quarter compared to RM16.7 million reported previously.
MRCB group managing director Imran Salim commented that the results are in line with its earlier expectation of stronger revenue recognition as construction progresses at its key property projects.
“However, as these results cover only the initial part of the movement control order, we anticipate a significantly weaker performance in the second quarter,” he said in a statement today.
“Although work has now slowly resumed at all our construction sites, we believe the outlook for the economy and the property market will remain challenging for the foreseeable future and we have embarked on austerity and cost cutting measures to mitigate the impact.”
The group stated that its immediate priorities in 2020 are enhancing cashflow and monetising its inventory of unsold completed stock.
It will continue to closely monitor conditions in the broader economy and property market, revising its strategies and financial targets accordingly, including reviewing its future launches if conditions dictate.
source https://www.thesundaily.my/business/mrcb-sees-over-3-fold-jump-in-earnings-from-melbourne-contribution-MD2630860
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