KUALA LUMPUR (Nov 27): A recovery in business activities helped Ekovest Bhd swing back into the black with a net profit of RM10.86 million in its first quarter ended Sept 30, 2020 (1QFY21), from a net loss of RM53.82 million in the preceding quarter.

Revenue increased 63.17% to RM313.77 million from RM192.3 million in 4QFY20, the group said in a filing to Bursa Malaysia.

The group attributed the improved results to more construction work done being recognised, an increase in traffic volume for its toll operations, and an increase in rental income from the EkoCheras Shopping Mall, compared with 4QFY20.

However, net profit was down 82.84% when compared with the RM63.32 million recorded in 1QF20. Quarterly revenue was also down 9.5% from RM346.8 million a year earlier.

The decline in the net profit, the group said, was because there was a facilitation fund income for infrastructure works at Jalan Cheras, which helped boost 1QFY20 earnings.

Ekovest did not declare any dividend for the latest quarter, as was the case in 1QFY20.

On its prospects, the group said it remains optimistic on delivering positive financial results.

It expects the ongoing construction of Setiawangsa-Pantai Expressway, River of Life beautification packages, the toll revenue, and the sales of completed properties, to contribute positively to its revenue and earnings for the current financial year.

Ekovest shares fell 2.91% or 1.5 sen to 50 sen, valuing the group at RM1.35 billion. The counter saw 6.06 million shares traded.