Zelan records 76% rise in 3Q profit on provision write-back, tax refund

by **Cals** Mon 23 Nov 2015, 22:20

Zelan records 76% rise in 3Q profit on provision write-back, tax refund

By Danial Idraki / theedgemarkets.com | November 23, 2015 : 6:52 PM MYT

KUALA LUMPUR (Nov 23): [size=16]Zelan Bhd ([You must be registered and logged in to see this image.] Valuation: 1.50, Fundamental: 0.95) recorded a 75.9% increase in net profit for the third quarter ended Sept 30, 2015 (3QFY15) to RM23.45 million from RM13.33 million a year ago, largely due to a RM26 million provision write-back and a RM15.9 million tax refund.

The write-back was on its provision for late payment interest charge on tax in Indonesia, while the tax refund was on tax paid in Indonesia; also contributing to the better results was a RM1.8 million tax refund from India, and higher unrealised foreign exchange gain of RM10.3 million, its filing on Bursa Malaysia today showed.

Meanwhile, its latest quarterly revenue rose 49.1% to RM94.03 million from RM63.1 million in 3QFY14, contributed mostly by local projects as well as the Meena project in Abu Dhabi.

For the nine-month period (9MFY15), net profit was 34.08% or RM12.46 million higher at RM49.02 million, compared with RM36.56 million a year ago; its latest cumulative revenue was up 48.4% at RM297.13 million from RM200.21 million in 9MFY14.

Moving forward, the group said it has taken positive steps to improve its performance through continuous assessment of internal and external risks and the implementation of strategies to control costs.

"With the current projects in hand, the performance of the group is expected to be satisfactory," it said.

Shares in Zelan closed 0.5 sen or 1.82% higher at 28 sen today, after 542,300 shares changed hands. The current price gives it a market capitalisation of RM232.4 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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