YTL Corp posts flat 3Q net profit

• Its property investment and development saw loss before tax narrowed due to the absence of a rental deferral programme which ended June 30, 2022, and the absence of unrealised foreign exchange loss on borrowings denominated in foreign currencies by YTL Hospitality REIT.
• For the construction segment, it said better revenue was recorded due to an increase in the progress of construction works, while a decrease in PBT was due to higher operating costs.

KUALA LUMPUR (May 25): YTL Corp Bhd’s net profit was flat at RM414.14 million in the third quarter ended March 31, 2023 (3QFY2023) from RM414.61 million a year before.

Nonetheless, the conglomerate reported a profit before tax (PBT) of RM815.8 million for the quarter compared to a loss of RM99.7 million, after adjusting for the one-off gain of RM1.02 billion from the disposal of its investment in electricity transmission specialist ElectraNet Pty Ltd in Australia, which was partially offset by project development costs written off, allowance for impairment of intangible assets recorded last year, and a contribution to a corporate social responsibility programme.

Quarterly revenue, meanwhile, increased by 18.77% to RM7.33 billion in 1QFY2023 from RM6.17 billion due to increased revenue contribution from all its business segments.

The utility segment, which contributed 71% of its total revenue, saw improvement for both its revenue and PBT, lifted by the power generation division due to higher retail prices.

The cement and building materials segment saw revenue and PBT rise significantly due to an increase in demand and better selling prices.

Its hotel division also saw improvement in revenue and PBT, thanks to the easing of pandemic restrictions. 

Meanwhile, its property investment and development saw loss before tax narrowed due to the absence of a rental deferral programme which ended June 30, 2022, and the absence of unrealised foreign exchange loss on borrowings denominated in foreign currencies by YTL Hospitality REIT.

For the construction segment, it said better revenue was recorded due to an increase in the progress of construction works, while a decrease in PBT was due to higher operating costs.

The management services segment also registered higher revenue on higher interest income. The segment, however, incurred loss of tax due to absence of a gain on disposal of the investment of ElectraNet, partially offset by project development costs written off, allowance for impairment of intangible assets recognised by YTL Power International last year.

For the cumulative nine months of FY2023 (9MFY2023), YTL’s net profit rose 4.94% to RM547.67 million from RM521.87 million in 9MFY2022, as revenue grew 12.85% to RM20.41 billion from RM18.09 billion.

YTL Corp shares closed 0.5 sen or 0.64% lower at 78 sen, giving the group a market capitalisation of RM8.6 billion. Year to date, the stock has rallied by 36.84%.