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PETALING JAYA: Bina Puri Holdings Bhd has completed a turnaround of its financial performance with a net profit of RM14.38 million for the third quarter ending March 31, 2024 (Q3’24), after 16 consecutive quarters of losses, predominantly contributed by its construction segment.
Revenue in Q3’24 increased 57.68% year-on-year to RM49.63 million.
The group recorded a net loss of RM16.81 million in the corresponding quarter of the 2023 fiscal year.
On a nine-month basis, Bina Puri narrowed its net loss to RM11.15 million from RM54.31 million previously. Revenue increased 39.9% to RM136.62 million in the same period.
The group’s improved performance was mainly driven by the positive impact of the proposed scheme between Bina Puri Sdn Bhd, a wholly owned subsidiary of the company, and its scheme creditors. This scheme was approved by the High Court of Malaya on Jan 24, 2024 and it was necessary for the group to restructure its finances and revive its financial situation.
Sluggish construction activities and a weak property market climate brought on by severe disruption to the overall operating environment caused by the implementation of movement control order during the Covid-19 pandemic significantly impacted the group’s financial performance in recent years.
For perspective, in the 2020, 2021 and 2022 financial years, the construction division reported losses before tax of RM39.2 million, RM49.7 million and RM33.3 million, contributing to the group’s net losses of RM10.4 million, RM62.4 million and RM71.9 million, respectively.
The completion of the creditor scheme is now reflected in Bina Puri’s latest results. For the nine months to March 31, 2024, the construction sector recorded a loss before tax of RM10.57 million, a substantial improvement from the loss of RM64.49 million it recorded in the same period a year ago.
Bina Puri’s core businesses comprise construction, property investment and development, quarry operations and power supply.
“After years of losses due to the lacklustre construction sector and the previous financial woes, the worst is over and the outlook for the industry appears much brighter, underpinned by the strong pipeline of jobs both in the public and private sector,” said group managing director Kevin Chai.
He added that Bina Puri successfully completed One Jesselton, Kota Kinabalu and 1Puri Commercial Centre, Kuching, in the second half of the 2024 financial year and its focus remains on the completion of ongoing projects in a timely and efficient manner.
“We are also actively seeking out new business opportunities, not just to achieve financial stability and replenish our order book, but also to rebuild and revive Bina Puri as the construction and infrastructure behemoth that it once was,” he said.
Looking ahead, Chai expects the construction segment to perform satisfactorily. The group will continue to exercise prudence in business dealings and implement various measures to improve operational efficiency, aiming to achieve financial stability and sustainability across its businesses.
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