Ireka returns to the black after two consecutive loss making quarters

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KUALA LUMPUR (Nov 27): Construction and property development player Ireka Corp Bhd posted net profit of RM7.02 million in its second financial quarter ended Sept 30 (2QFY15), against net loss of RM1.85 million and RM14.13 million in 1QFY14 and 4QFY13 respectively.

In its explanatory note to Bursa Malaysia today, Ireka attributed the profit to better performance in the property development segment, which contributed mainly by Kasia Greens project, a residential development at Nilai. The project achieved 100% sales, and is expected to complete by March 2015.

On top of that, Ireka also noted its construction segment recorded a lower loss due to significant increase in revenue that came from new projects like Imperia Puteri Harbour, KL Eco City, and Solstice.

Under such backdrop, Ireka 2QFY15 revenue surged nearly 70% on-year to RM105.68 million, from RM62.32 million.

Cumulatively, the group recorded a net profit of RM5.17 million in the first half of the financial year (1HFY15), against a net loss of RM15.28 million in 1HFY14; whist revenue grew 81% to RM201.88 million, from RM111.32 million in preceding corresponding period.

According to Ireka, as at 2QFY15, its construction segment has an order book that worth RM1.44 billion, of which about RM1.03 billion remain outstanding. Therefore, it expect this segment to have stronger contribution going forward.

Besides, it also noted that with the recent injection of fresh capital into the group after its rights issue, Ireka said that its balance sheet will be strengthen to supports future growth.

Ireka had on Jul 1 completed the listing of and quotation for its rights shares and warrants.

Ireka share price fell 0.7% to 70 sen today, giving it a market capitalisation of RM119.6 million.