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TTJ Holdings Q3 net profit slumps 74%

TTJ Holdings reported a 74 per cent slump in net profit for the third quarter ended April 30 to S$1.6 million, dragged by lower sales and margins.

Lower sales recorded in the structural steel business outpaced the increase in revenue from the dormitory business, sending overall group revenue down 56 per cent to S$14.8 million.

The group's gross profit margin also slipped to 24.9 per cent in the fiscal third quarter ended April 30, down from 28.2 per cent a year ago. This was mainly due to a lower volume of structural steel work carried out during the quarter, which resulted in lower gross contribution to meet the fixed overhead cost incurred over the same period.

As of June 8, TTJ's projects orderbook stood at S$106 million, which is expected to be substantially completed between FY2015 and FY2017.

This includes new contracts secured amounting to S$35 million for the provision of structural steel works for projects on Jurong Island and civil defence doors for Thomson Line, which the group announced on May 28.

"To date, the group continues to experience a healthy level of enquiries for a mix of public and private sector projects," TTJ said. "Going forward, the group will continue to monitor its costs closely and enhance productivity to remain competitive."