TTJ Holdings posts 43% drop in Q2 profit

STRUCTURAL steel provider TTJ Holdings on Wednesday posted a 43 per cent drop in net profit for the second quarter ended Jan 31, 2017, to S$3.1 million, as revenue and margins took a hit.

Revenue slipped 30 per cent to S$20 million during the quarter.

TTJ said its performance was impacted by a challenging economic environment and intensified competition, as well as the expiry of tenure for the Terusan Lodge I dormitory, which resulted in lower revenue contributions from both its structural steel and dormitory businesses.

But the group has successfully secured a few projects which add up to a total order book of S$59 million to-date, one of which is to supply and instal structural steelworks for Funan DigitaLife Mall.

The group's gross profit margin dipped to 26.2 per cent from 26.6 per cent a year ago, mainly due to a decrease in profits derived from dormitory business as a result of the expiry of tenure for the dormitory at Terusan Lodge I.

The impact has been partially alleviated by an increase in margins derived from the projects secured and executed during the reporting period from the structural steel business.