TRC 2Q net profit up 3.2% at RM7m, revenue falls

by **Cals** Wed 27 Aug 2014, 23:13

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Wednesday, 27 August 2014 13:42

KUALA LUMPUR (Aug 27): TRC Synergy Bhd's net profit for the second financial quarter ended June 30th, 2014 rose 3.2% to RM6.98 million from RM6.76 million a year earlier.

In the filing to Bursa Malaysia today, the construction company said revenue slipped to RM194.35 million from RM199.39 million. TRC said net profit growth came on lower taxes during the quarter.

TRC's income statement showed that the firm registered taxes of RM2.44 million versus RM4.94 milllon previously. Profit before tax (PBT) was lower at RM9.33 million compared to RM11.72 million,

TRC said the lower PBT was attributable to lower gross margin and the completion of certain projects subsequent to the corresponding quarter.

For the six months, TRC's net profit fell to RM8.74 million from RM12.41 million a year earlier while revenue rose to RM392.26 million from RM371.75 million

The company said its unit, Trans Resources Corp Sdn Bhd, has secured two new contracts from KL Eco City Sdn Bhd. The contracts with a combined value ofRM414.63 million, are part of a mixed development jointly undertaken by Dewan Bandaraya Kuala Lumpur (DBKL) and KL Eco City Sdn Bhd.

The development, along Jalan Bangsar here, comprises a 32-storey block service apartment and two office blocks of 32 storeys and 42 storeys respectively.

TRC said it had also secured a contract from the Public Works Department to construct and refurbished Parliament House for a contract sum of RM191 million.

Together with the progress of the other major on-going projects, the group expects the projects to contribute positively to performance in the coming financial year, it said.