KUALA LUMPUR: Glomac Bhd is cautiously optimistic about improvements in the property market.

"Despite growing concern over inflation, we can see a pickup in sales and stability in labour supply and interest rates," the property developer said in a stock exchange filing yesterday.

Glomac added that it will remain focused on the affordable and mid-market residential segments.

The company's net profit surged by more than ninefold to RM3.81 million in the third quarter of its financial year ending April 30, 2024, from RM419,000 in the same period a year earlier, driven by higher revenue from its property development and property investment business.

Revenue rose 35.38 per cent to RM89.4 million from RM66 million in the preceding corresponding quarter a year ago.

In the first nine months of 2024 (9M FY2024), Glomac's net profit was down 52 per cent to RM8.36 million from RM17.41 million in the same period of FY23.

Glomac attributed the drop in net profit to lower contributions from the property development segment and higher finance costs. 

Its 9M FY2024 revenue fell 2.22 per cent to RM205.26 million from RM209.93 million (9M FY2023).

Glomac said there was steady revenue for the period driven by ongoing construction activities at the company's property projects, namely, 121 Residences, Plaza@ Kelana Jaya, and ongoing phases at Saujana KLIA and RUMA 33 at Saujana Utama 5.

The company said that its balance sheet has remained sound over the past five years. 

"This is reflected by the near net cash position, with negligible net gearing of 0.08 times against shareholder's funds of RM1,187.7 million," it said.

Cash and deposits rose to RM307.9 million from RM288.8 million as of April 2023, backed by strong operating cash flows and a free cash flow of 16 sen per share, the company said.