Financials


Condensed Consolidated Statement Of Comprehensive Income
For the financial year ended 31 March 2018

Comprehensive Income

Condensed Consolidated Statement Of Financial Position
As At 31 March 2018

Financial Position

Financial review for current quarter

Financial Position

Current quarter ("3Q 2018") against preceding year corresponding quarter ("3Q 2017")

For the 3Q 2018, the Group registered revenue of RM220.516 million and profit before tax of RM21.549 million as compared to revenue of RM291.754 million and profit before tax of RM21.255 million reported in the 3Q 2017.

The performance of the respective operating business segments for the 3Q 2018 under review as compared to the 3Q 2017 is analysed as follow:

Construction operations

The construction sector reported a lower revenue of RM107.318 million for the 3Q 2018 as compared to RM229.998 million in 3Q 2017. The decrease in revenue and gross profit in the 3Q 2018 were mainly due to the completion of Duke Phase 2 and the River Of Life Precinct 7 beautification work at Masjid Jamek which resulted a lower progress construction workdone recognized in the current quarter.

Property development

The property development segment reported a higher revenue of RM72.83 million as compared to RM32.647 million in the preceding year corresponding quarter. Higher sales recognition for property development following increase in progress work done has contributed to a higher revenue for the segment. Correspondingly, this sec tor recorded higher gross profit of RM26.360 million for the 3Q 2018 as compared to RM11.422 million in 3Q 2017.

Toll operations

The toll operations sector registered a higher revenue of RM40.183 million in 3Q 2018 as compared to RM28.9 million in 3Q 2017. There is an increase of 39.04% in the toll revenue due to the increase in traffic volume and the additional contribution from the opening of the Duke Phase 2 on 23 October 2017.

Investment holding

Revenue for the current quarter decreased from RM0.209 million to RM0.185 million due to reduction in rental income as more office space is required for internal usage. Correspondingly, this has reduced the sector's gross profit and profit before tax for the quarter.

Financial Position

Current year to date ("YTD 2018") against preceding year corresponding period ("YTD 2017")

For the YTD 2018, the Group registered a revenue of RM749.032 million and profit before tax of RM151.472 million as compared to the revenue of RM770.256 million and profit before tax of RM130.885 million reported in YTD 2017.

Despite an increase in the revenue for the YTD 2017, the profit before tax for the YTD 2017 was lower mainly due to the one-off expense amounting to RM22.62 million on the recognition of the fair value adjustment pursuant to the granting of the Employees' Share Option Scheme in the preceding year.

Other than the above, the performance of the respective operating business segments for the YTD 2018 as compared to the YTD 2017 is analysed as follow:

Construction operations

The construction sector reported a lower revenue of RM446.55 million for the YTD 2018 as compared to RM598.837 million in YTD 2017. The decrease in the revenue for the YTD 2018 was attributed to lower construction workdone following the completion of Duke Phase 2 project in the 2nd quarter of YTD 2018. Furthermore, in the YTD 2017, a higher revenue was recognized from the initial commencement of preliminary and enabling work for SPE which also has a better profit margin as compared to the other construction workdone recognized in the YTD 2018. As a result of the decreased revenue, the sector reported a gross profit of RM122.574 million in YTD 2017 as against RM191.264 million in YTD 2018.

Property development

The property development segment reported a higher revenue of RM194.255 million as compared to RM74.669 million in the preceding year. Higher sales recognition for EkoCheras Project following additional progress work done has contributed to a higher revenue for the segment. Correspondingly, this sector recorded higher gross profit of RM 76.868 million for the YTD 2018 as compared to RM26.140 million in YTD 2017.

Toll operations

The toll operations sector registered a higher revenue of RM107.652 million in YTD 2018 as compared to RM96.067 million in YTD 2017. The revenue for YTD 2017 includes a one-off toll compensation amounting to RM7.986 million. Had the compensation amount been excluded, the 3Q 2018 toll revenue would have increased by RM19.571 million, which is an increase of 22.22%. Besides the increase in traffic volume, the opening of the Duke Phase 2 on 23 October 2017 has also contributed to the increase in the revenue recognized in YTD 2018.

Investment holding

Revenue for the YTD 2018 decreased from RM0.683 million to RM0.575 million due to reduction from rental income as some of the tenancies were not renewed. Correspondingly, this has reduced the gross profit from RM0.554 million to RM0.280 million for the current YTD.

Prospects

The Board expects the ongoing construction of SPE, River of Life and related projects, the opening of the DUKE Phase-2's toll revenue and the recognition of unbilled sales from property development activities to contribute positively to the Group's turno ver and profitability in the current financial year.

Barring any unforeseen circumstances, the Board is confident that the Group's performance would remain satisfactory for the financial year ending 30 June 2018.