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IJM Corp net profit soars to RM629.3m in Q2 FY2022 after disposals of subsidiaries

In a filing with Bursa Malaysia today, IJM Corp said the construction segment’s revenue for Q2 FY2022 decreased by 39.5 per cent compared to Q2 FY2021 amid lower construction activities during the lockdown period. — Bernama pic

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KUALA LUMPUR, Nov 29 — IJM Corporation Bhd’s net profit soared 533 per cent to RM629.3 million in the second quarter ended Sept 30, 2021 (Q2 FY2022) versus RM99.4 million mainly due to gains of RM639.4 million arising from the disposal of IJM Plantations Bhd and Kemena Industries Sdn Bhd.

However, revenue dipped 28.2 per cent to RM874.25 million from RM1.22 billion following the reimposition of the nationwide lockdown which had restricted business activities for most of the period under review.

In a filing with Bursa Malaysia today, it said the construction segment’s revenue for Q2 FY2022 decreased by 39.5 per cent compared to Q2 FY2021 amid lower construction activities during the lockdown period.

Meanwhile, revenue for the property development division dropped 37 per cent amid business restrictions to help stop the spread of Covid-19, while revenue for the manufacturing and quarrying unit increased 29.5 per cent due to higher deliveries of piles, quarry products and ready-mixed concrete.

IJM said plantation operation revenue was lower by 5 per cent following the deconsolidation results due to the completion of the disposal of the entire 56.2 per cent equity stake in IJM Plantations to Kuala Lumpur Kepong Bhd for RM1.53 billion.

It sold 55 per cent equity interests in Kemena Industries to Kemena Global Sdn Bhd for RM18.1 million.

Revenue infrastructure division declined 31.1 per cent as a results of the significant reduction in the local traffic volume at the toll highways and cargo throughput at the port.

“As business restrictions continue to be lifted, we expect the performance of the group to gradually improve in the second half of the financial year,” it noted.

IJM said the construction’s outstanding order book currently stands at RM4.51 billion and the performance of the division is expected to improve with the resumption of activities.

In addition, the property division is expected to recover with the resumption of business activities post lockdown.

The segment’s secured order book is expected to underpin its performance in the second half FY2022, while it continues with its business rationalisation efforts through product quality improvements, cost optimisation and process efficiency enhancements.

It said the performance of the port operations will be dependent on the pace of recovery of its customers’ business activities while the group’s toll units are expected to see a rebound in traffic volumes following the relaxation of the movement controls.

The company has declared a single tier first interim dividend and special dividend in respect of the financial year ending March 31, 2022 of 2 sen and 15 sen respectively per share to be paid on Dec 30, 2021 to every member who is entitled to receive the dividend at the close of business on Dec 15, 2021. — Bernama

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