KUALA LUMPUR: Gamuda Bhd saw its second quarter net profit inch up 1.17% to RM175.17 million from RM173.14 million a year earlier, on the back of contribution from the construction of the Mass Rapid Transit Line 2 (MRT2).

The construction giant’s earnings per share (EPS) for the quarter ended Jan 31, 2020 (2QFY20) was marginally higher at 7.07 sen, from 7.02 sen previously, according to a filing with Bursa Malaysia.

Quarterly revenue, however, declined 3.06% to RM1.09 billion from RM1.13 billion for 2QFY19.

Gamuda said its engineering segment’s profit expanded due to greater profit from the MRT2 construction. Meanwhile, its property development arm posted lower profits due to the higher upfront costs of newer townships in Malaysia.

The group noted that its infrastructure concession was consistent due to “stable and resilient” traffic volumes on the expressways it controls.

For the cumulative six-month period, the group saw its net profit go up slightly to RM348.79 million from RM345.18 million in the previous corresponding period. Cumulative EPS rose to 14.09 sen from 13.99 sen.

Cumulative revenue grew 7.8% to RM2.19 billion, from RM2.03 billion previously.

The group said it is anticipating its annual performance for FY20 to be driven by its overseas property sales, especially in Vietnam, and the continued progress of the MRT2 project.

“There will be a great deal of uncertainty over the coming months due to the unfolding global health crisis, oil shock and turmoil in the financial markets affecting economic activity, investor confidence and consumer sentiment.

“The low oil price will also constrain the government’s plans. In view of this, the group will remain prudent, while continuing to build resilience, navigating the change and to be fit and ready when the upturn ensues,” Gamuda commented in its quarterly result announcement.

Gamuda’s share price plunged 40% from this year’s peak of RM4.09 to RM2.49 last Thursday. The stock was five sen higher yesterday to close at RM2.65, valuing the group at RM6.66 billion.