Titijaya Land Berhad reported a net profit of RM28.92 million for the financial year ended 30 June 2024 (“FY2024”), a more-than-threefold year-on-year increase and the highest annual profit since the financial year ended 30 June 2020.
The surge in net profit it said was driven by compensation the Group received for the temporary occupation of land belonging to Shah Alam City Centre Sdn Bhd (“SACC)”, a wholly-owned subsidiary of Titijaya, for the upcoming third light rail transit (LRT3) project. For perspective, net profit in the financial year ended 30 June 2023 (“FY2023”) was RM5.91 million.
The Group’s revenue dropped 30% y-o-y to RM254.86 million in FY2024, from RM362.87 million a year ago. Revenue for the year was driven by sales of Neu Suites @ Off Jalan Ampang, The Riv @ KL Sentral, The Ria @ KL Sentral, and Seiring @ Bukit Subang.
For the financial quarter ended 30 June 2024, the Group swung back into the black with a net profit of RM2.59 million, as compared to a net loss of RM21.33 million a year ago. The improved profitability of the Group in Q4 FY2024 was due to compensation the Group received for the temporary occupation of land belonging to SACC for the upcoming LRT3 project.
The Group’s net loss for the three months ended 30 June 2023 it said was mainly due to adjustments made for the reclassification of financial instruments, coupled with an impairment charge of RM14 million to reflect a reduced market value for the First Palm City Centre project in Lahad Datu, Sabah.
Revenue for Q4 2024 was RM55.81 million, a 52% decline from RM115.23 million in the year-ago period. The drop in revenue was mainly due to an over 90% take-up rate for the projects that the Group has already completed, leaving limited inventory for sale. At the same time, the Group’s newer projects are still at an initial stage of development, resulting in minimal revenue contributions from these ventures.
