IJM releases Financial Results for the Year Ended 31 March 2017

PETALING JAYA, 25 MAY 2017: IJM Corporation Berhad (“IJM”) today released its financial results for the year ended 31 March 2017. In the quarter, the Group achieved an operating revenue of RM1,669.3 million, an increase of 43.0% over the corresponding quarter of the preceding year, following increased revenue contributed by the Group’s Construction, Property, Industry and Plantation divisions. The Group also recorded a pre-tax profit of RM375.21 million for the current quarter, an increase of 178.3% over the corresponding quarter of the preceding year, mainly due to improved earnings from the Group’s Construction, Property, Industry and Plantation divisions.

Group consolidated revenue stood at RM6,065.3 million, representing an increase of 18.3% from RM5,128.2 million reported in the preceding year with higher revenue contributed by the Group’s Construction, Property, Industry and Plantation divisions. The Group’s pre-tax profit for the year stood at RM1,010.01 million, a decrease of 12.6% compared to RM1,155.8 million last year, mainly due to the non-recurrence of one-off gains from the disposal of equity interests and fair value gain on remeasurements of its equity interests in Jaipur Mahua Tollway Private Limited and Swarna Tollway Private Limited totalling RM301.9 million that were recorded in the preceding year. Excluding the effect of these one-off gains, the Group’s pre-tax profit grew by 18.3% over the preceding year, mainly due to better earnings from the Group’s Construction, Property, Industry and Plantation divisions. 

The Construction Division recorded a 52.1% increase in revenue at RM2,151.5 million as compared to RM1,414.2 million last year following continued progress contributions from projects that were secured in the previous financial year. The Property Division recorded higher revenue at RM1,437.7 million as compared to RM1,185.0 million in the previous year mainly due to the recognition of the sale of a 32-acre land situated at The Light Waterfront Penang (Phase 2) as well as the completion of some projects in the year. Revenue of the Industry Division increased by 15.7% to RM1,133.4 million due to increased orders from local and overseas projects which boosted delivery tonnage of piles by 23.4% and quarry products by 45.0%. The Infrastructure Division recorded revenue at RM588.4 million, a decrease of 40.6% from last year, due to a 60% slowdown in cargo throughput handled by the Group’s port concession during the year. As a result of improved CPO sales volume and higher commodity price during the year, the Plantation Division posted revenue of RM753.7 million, a 35.2% increase as compared to RM557.6 million in the previous year.

Pre-tax profit of the Construction Division increased 27.1% to RM216.7 million as compared to RM170.6 million in the previous year in tandem with the increase in revenue. Pre-tax profits for the Property Division increased by 90.4% to RM303.3 million from last year mainly due to the recognition of the sale of a 32-acre land situated at The Light Waterfront Penang (Phase 2) as well as the completion of some projects during the year. The Industry Division saw a 14.8% increase of its pre-tax profits to RM142.4 million mainly attributable to the increase in the sales volume of piles and quarry products. PBT of the Plantation Division increased to RM168.5 million from RM50.4 million primarily due to the higher commodity price and improved sales volume of CPO. The Infrastructure Division reported a lower pre-tax profit of RM62.3 million as compared to RM555.8 million in the previous year due to the above-mentioned non-recurrence of the gain on disposal of the Group’s equity interests in Jaipur Mahua Tollway Private Limited and Swarna Tollway Private Limited totalling RM301.9 million the previous year.

Following the results, the Company declared a single tier second interim dividend of 4.5 sen per share to be paid on 21 July 2017. Coupled with the single tier first interim dividend of 3 sen per share, this brings the total dividend declared for the financial year ended 31 March 2017 to 7.5 sen per share. This represents an increase from interim dividends totalling 7 sen per share last year. 

Underscoring his confidence in the Group’s outlook, IJM’s CEO & Managing Director Dato’ Soam Heng Choon said: “The Group’s prospects under the Construction and Industry divisions are supported by strong current outstanding order book levels and will continue to benefit from the ongoing infrastructure spending identified by the 11th Malaysia Plan. On the back of a strong balance sheet, the Group is well-positioned to expand the capacity of its concessions assets while its existing portfolio provides stable and predictable cash flow streams. The Group also has a fast maturing Indonesian plantation land bank profile to provide FFB production growth in the next few years. Despite the challenging property market outlook, the Group’s Property division expects to sustain its performance on the back of unbilled sales in excess of RM1.7 billion.”

- end -

About IJM Corporation Berhad
IJM Corporation Berhad (“IJM”), formed in 1983, is today one of Malaysia’s leading construction groups and is listed on Bursa Malaysia KLCI. Its business activities encompass construction, property development, manufacturing and quarrying, infrastructure concessions and plantations. 

Headquartered in Selangor, its operations are located in 10 countries, with primary focus in Malaysia, India and Indonesia. The Group presently has a market capitalisation of around RM12 billion and as of March 2016, the Group employed around 4,600 employees and had total assets of RM20.9 billion. 

The Group’s belief in a shared destiny with its employees remains pivotal to its growing success while its reputation for professionalism, performance and good governance is acknowledged by customers and investors alike from its numerous corporate and industry accolades. IJM is committed to ethical business conduct and subscribes to the principles of good corporate citizenship for sustainable growth and development.

For more information, visit www.ijm.com