KUALA LUMPUR: IJM Corp Bhd's net profit increased 533.3 per cent to RM629.30 million in the second quarter (Q2) ended September 30, 2021, from RM99.36 million a year ago.

However, the company's revenue declined 24.8 per cent to RM1.07 billion in Q2 2021 from RM1.42 billion reported in the corresponding quarter last year.

Chief executive and managing director Liew Hau Seng said the lower revenue was mainly attributable to the reimposition of the nationwide lockdown, which had restricted business activities for most of the period.

"Once Malaysia entered into the National Recovery Plan in mid-August, the company's businesses resumed operations, although we saw initial constraints in the supply chain.

"The company recorded a sharp rise in the pre-tax profits for Q2 2021, primarily due to gains totalling RM639.4 million arising from the disposal of our stake in IJM Plantations and Kemena Industries," said Liew.

For the six months ended September 30, 2021, IJM Corp registered a higher net profit of RM694.98 million from RM101.41 million, while its revenue rose to RM1.91 billion from RM1.89 billion last year.

Liew said as business restrictions continued to be lifted, the company's prospect was expected to gradually improve in the second half of the financial year.

He said the construction division's outstanding order book stood at RM4.51 billion.

"The performance of the company's construction division is expected to improve with the resumption of construction activities.

"The on-going Home Ownership Campaign, low-interest-rate regime as well as the recent rate reduction of the Real Property Gains Tax (RPGT) bode well for the property market.

"With its wide array of mid-market products in strategic locations and its unbilled sales in hand, the property division is expected to recover with the resumption of business activities post lockdown," it said.

Meanwhile, Liew said the industry division's performance would continue to improve in line with the resumption of construction activities.

He said the division's secured order book was expected to underpin its performance in the second half of the financial year 2022 (FY22).

It continues its business rationalisation efforts through product quality improvements, cost optimisation and process efficiency enhancements.

"The performance of the port operations will be dependent on the pace of recovery of its customers' business activities while the company's toll operations are expected to see a rebound in traffic volumes following the relaxation of the movement controls under the NRP.

"IJM Corp's performance for the second half of FY22 is expected to recover with the reopening of business activities under the NRP," he added.