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Sinarmas Land Q1 net profit jumps 70% on higher revenue, forex gain
SINARMAS Land reported a 70 per cent jump in net profit to S$79.78 million in the first quarter ended March 2015 on the back of improved revenue and foreign exchange gain.
Revenue came in at S$285.4 million, up 19 per cent from a year ago on the back of higher sales of land for commercial, office and industrial purposes in Indonesia.
This was partially offset by lower revenue from completed commercial shophouses project in Kota Wisata following the completion and hand-over of these units in 2014.
The group recorded a net foreign exchange gain of S$23.9 million versus a loss of S$18.1 million a year ago which it attributed to unrealised translation gain recorded in certain subsidiaries due to the stronger dollar against the Indonesian rupiah and Singapore dollar.
Earnings per share stood at 2.62 Singapore cents, up from 1.54 Singapore cents previously. No dividend was recommended.
In an announcement the firm said that while lower commodity prices will continue to exert pressure on Indonesia's economic growth, "one bright spot" was the upturn in foreign direct investment in the first quarter period which will benefit its industrial projects given foreign demand for industrial and commercial land.
Sinarmas Land added that it was committed to seek new investment opportunities outside of Indonesia and remains "cautiously aggressive" in the light of escalating real estate prices in international markets.