Kumpulang Perangsang Selangor 3Q net profit surges 16.5 folds

by **Cals** Fri 29 Nov 2013, 18:32

Business & Markets 2013

Written by Zatil Husna of theedgemalaysia.com

Friday, 29 November 2013 18:30

KUALA LUMPUR: Kumpulan Perangsang Selangor Bhd’s (KPSB) net profit increased by 16.5 fold year-on-year (y-o-y) for the third quarter ended Sept 30, 2013 due to the disposal of a subsidiary.

The group’s profit for the 3QFY13 stood at RM228.94 million compared to RM13.86 million from a year earlier. Its revenue climbed to RM76.38 million from RM65.55 million previously.

“The increase was mainly due to higher revenue recorded by the infrastructure and utilities sector by RM7.94 million and trading sector by RM2.04 million.

“The higher profit was attributable to the gain on disposal of a subsidiary company of RM287.90 million.

“However, during the current quarter, the group also recorded a loss on disposal of an associate company of RM57.18 million,” the group said in a note to the exchange today.

The company’s net profit for the nine months ended Sept 30, 2013 increased by four times to RM274.17 million from RM63.03 million y-o-y. Revenue increased to RM214.40 million from RM197.02 a year ago.

KPSB noted that its property development and management sector recorded lower revenue and higher losses compared to the corresponding period.

“The negative variance was due to lower contribution from the property development projects and lower revenue from sale of land.

“Compensation received from local authority of RM11.26 million in regards to acquisition of certain lands has softened the impact of lower revenue recognition from both property development projects and land deals,” said KPSB.

The group expects its infrastructure and utilities sector to remain as major contributor to the group.

“Notwithstanding that the ongoing water restructuring in Selangor remains unresolved, the group expects the infrastructure and utilities sector continues to be the major contributor towards the group’s earnings,” it said.