Selangor Dredging 2Q profit falls to RM9.5m

Selangor Dredging Bhd (SDB) reported lower profit for the second quarter ended Sept 30 (2QFY13) on higher tax charge for the period under preview.

The property developer registered net profit of RM9.5 million for 2QFY13 against RM10.2 million a year ago.

But turnover was higher at RM85.3 million for the second quarter, compared to RM61.7 million.

“The higher turnover was mainly attributable to higher revenue recognition from Dedaun and Hijauan projects compared to the previous corresponding quarter.

“The lower net profit was mainly due to higher current period’s tax charge after utilization of tax losses of certain subsidiaries in previous corresponding period,” the group said in a note to the exchange today.

For the first half of the financial year to September, the group saw a decrease in profit to RM18.8 million from RM20.8 million a year ago.

Its revenue for the cumulative period climbed to RM156.1 million from RM127.0 million previously.

Looking forward, the group anticipates soft demand for properties due to the recent announcements to curb speculative activities in Budget 2014.

SDB also expects the goods and services tax (GST) to have an impact on property development, operational and compliance costs come April 1, 2015.