KUALA LUMPUR (May 30): Lingkaran Trans Kota Holdings Bhd (Litrak) has posted a 11.95% increase in net profit to RM59.13 million or 11.2 sen for the fourth quarter ended March 31, 2019 (4QFY19), from RM52.82 million or 10.01 sen a year ago, thanks to lower finance cost and its associate Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd (Sprint Group) contributing a share of profit of RM2.7 million, compared with a share of loss of RM2.3 million a year prior.

Its revenue inched down 1.11% to RM126.45 million, from RM127.87 million a year ago, mainly due to lower traffic volume on the Lebuhraya Damansara Puchong highway (LDP).  

For the full year (FY19), Litrak made a net profit of RM236.11 million, a 3.31% increase from the RM228.55 million reported a year ago, while its cumulative revenue fell 1.50% to RM516.03 million, from RM523.90 million in FY18.

Going forward, Litrak said the group’s major shareholder, Gamuda Bhd, is in negotiation with the Pakatan Harapan coalition government, related to acquisition of its four highway concessions by the government, including the LDP and Sprint.

In addition, Litrak said the government has indicated there will be no move to abolish toll due to fiscal constraint. However, the study undertaken by various related government agencies on the toll highway industry, is still ongoing and an external consultant’s report will be issued in due course. 

On its prospects, Litrak said final toll increase was scheduled for Jan 1, 2016, according to the concession agreement.

However, the government has decided to freeze toll hikes for 2019, hence it will defer the increase until further notice and will have to compensate Litrak for the loss in revenue, as a result of the deferment. 

In terms of toll volume, Litrak said if the government decides to continue with the deferment of toll increase to users, the company can expect tollable traffic volume to remain fairly stable and constant in the short term.  

“Should the government decide to pass on the full final toll increase to road users, then Litrak can expect a significant drop in tollable traffic volume, and correspondingly, revenue, similar to what occurred in October 2015, when toll rates were increased,” it added. 

Shares of Litrak closed unchanged at RM4.20 today, for a market capitalisation of RM2.22 billion.