Gamuda Bhd reported a 7.29% increase in net profit to RM208.8 million in the second quarter ended January 31, 2024 (2QFY2024), up from RM194.62 million a year earlier, driven by higher revenue from its overseas projects.

Revenue more than doubled to RM3.33 billion year-on-year from RM1.44 billion in 2QFY2023, the construction group disclosed in a filing to Bursa Malaysia on Wednesday.

“Overseas projects have helped offset the decline in domestic revenue and earnings following the completion of the MRT2 [MRT Sungai Buloh-Serdang-Putrajaya line] project last year,” Gamuda stated.

The group highlighted that its quarterly revenue from overseas projects accounted for 77% of overall revenue, while quarterly net profit from overseas projects constituted 58% of overall net profit.

“Gamuda Engineering’s quarterly revenue from overseas projects tripled to RM2.1 billion from RM662 million in the previous quarter [of 2023], while overseas net profit more than doubled to RM72 million from RM34 million in the previous quarter [of 2023], driven by progress in Australian projects,” it explained.

Gamuda Land recorded a 70% increase in overall revenue and a 62% growth in net profit, fueled by strong performances in both overseas and domestic projects.

Quarter-on-quarter, net profit rose 7.05% from RM195.04 million in 1QFY2024, with revenue climbing 18.76% from RM2.8 billion in the immediate preceding quarter, driven by higher property earnings in 2QFY2024.

However, Gamuda’s net profit for the first half of the financial year 2024 (1HFY2024) declined 70.38% to RM403.84 million compared to RM1.36 billion in 1HFY2023, while revenue surged twofold to RM6.14 billion in 1HFY2024 from RM2.75 billion in the same period last year, primarily due to stronger overseas performances in the construction and property divisions.

Regarding its prospects, Gamuda stated that its performance this year will be fueled by overseas construction activities, particularly in Australia and Taiwan.

“The group’s resilience is supported by a sizable construction order book of RM24 billion and unbilled property sales of RM6.7 billion. Moreover, the group maintains a healthy balance sheet with a comfortable net gearing of 29%, well below its self-imposed gearing limit of 70%,” it added.

Shares in Gamuda closed eight sen or 1.54% higher at RM5.27 on Wednesday, valuing the group at RM14.59 billion. The counter has gained 14.81% year-to-date and 28.85% in the past year.