Mudajaya returned to the black after reporting a profit after tax of RM16.2 million for the fourth quarter of 2021 and has just reported a net profit of RM2.4 million for the first quarter of 2022.
Group Managing Director and Chief Executive Officer, Ir. James Wong stated, “It has been a tough two years, but we have managed to return to profitability with our strategic thrust towards renewable energy, tighter controls on overhead spending, as well as the initiatives we have undertaken to reduce debt and improve working capital.
One of the key challenges besides the disruption arising from the pandemic was the shortage of workers. Various measures were taken to address this, including securing alternative sources for workers, revising the sequence of works, and increasing resources, while also obtaining the necessary extensions of time from the clients. The focus now is on executing the jobs on hand and to win new projects to build up the pipeline domestically, as well as expanding into other countries, which is part of Mudajaya’s growth plans.
Mudajaya’s renewable energy and power business was a key contributor to Mudajaya’s return to the black, and the continued expansion in this segment will further drive Mudajaya’s positive trajectory going forward. Mudajaya currently owns two solar photovoltaic plants, the 10MW plant in Gebeng, Pahang and the 49MW plant in Sungai Siput, Perak; which have continued to
perform steadily throughout the year.
With regards to Mudajaya’s power plant in India, RKM Powergen Pvt Ltd (“RKM”), subsequent to the signing of the Master Debt Restructuring Agreement on 4th December 2020 based on the Resolution Plan formulated by RKM’s lenders, the debt structure of RKM has now enabled debt servicing to be better aligned with the business and future development. As part of
the RP, further working capital had been drawn down from the lenders. Mudajaya initially had a 26% stake in RKM, which was subsequently reduced to 19.24%, post the implementation of the debt restructuring. Consequently, Mudajaya’s investment in RKM has been valued and accounted for in Mudajaya’s books from the fourth quarter of 2021.
Mudajaya successfully completed its corporate exercise, the Rights Issue with Warrants, with an over-subscription rate of 13.03% in October 2021. Leveraging on the strong support and active participation from the shareholders, the group expects the coming 12-24 months to be an exciting period.
