Gamuda core earnings rises 35 percent to RM195 million for 1Q 2024

06 Dec 2023 | Bernama

Gamuda’s regionalisation strategy bears fruit with recent overseas project wins in Australia, Taiwan and Vietnam. The recently secured maintenace and stabling depot contract, under the Queensland Train Manufacturing Programme, ready for 2032 Brisbane Olympics and Paralympic Games. Credit: Gamuda

Kuala Lumpur, Dec 6 (Bernama) — Leading infrastructure and property development group, Gamuda Bhd posted impressive results for the first quarter ended Oct 31, 2023 (1Q 2024) with its core earnings rising by 35 per cent to RM195 million.

The group’s total revenue scaled new heights, doubled to RM2.8 billion from RM1.4 billion in the previous year, on the back of higher construction from overseas projects which tripled to RM2.1 billion.

In a statement today, the group noted that in the absence of highway earnings, both of the group’s core construction and property segments demonstrated an upswing, indicating a resilient performance, in contrast to the RM145 million earnings recorded in 1Q 2023.

The substantial growth is attributed to a doubled revenue stream, primarily fuelled by the heightened contributions from its overseas projects.

“We anticipate this year’s performance to be driven by the continuous momentum of overseas construction activities in Australia and Taiwan, coupled with the full-year impact of the recently acquired Australian transport projects business of Downer Transport Projects which was finalised on June 20, 2023,” the group said.

Additionally, it said buoyant property sales, including contributions from newly launched quick-turnaround projects (QTP) in the property division, are poised to be key growth drivers.

The group said its resiliency was also underpinned by a robust construction order book tallying RM26 billion and unbilled property sales amounting to RM6.7 billion.

“On top of that, the group maintains a healthy balance sheet with a comfortable net gearing of 25 per cent, well below its self-imposed gearing limit of 70 per cent.

“We remain optimistic about its trajectory, leveraging its track record and strategic initiatives to navigate the dynamic landscape of construction and property development,” said Gamuda.