TTJ nets stronger bottom line in Q3

Singapore

BOOSTED by higher revenue and fatter profit margins, structural steel specialist TTJ Holdings reported a net profit of S$13.41 million for the third quarter ended April 30, 2016, up from S$1.6 million in the corresponding quarter a year ago.

Revenue surged 262 per cent year-on-year to S$53.75 million, thanks to increased contributions from its structural steel business.

Cost of sales was also higher, rising from S$11.13 million to S$35.56 million. Gross profit was S$18.19 million, compared to nearly S$3.7 million a year ago.

Profitability improved, with gross profit margin rising from 24.9 per cent a year ago to 33.8 per cent.

"This healthy improvement was mainly due to an increase in margins derived from the projects secured and executed during the reporting period," the group said.

Earnings per share rose to 3.84 Singapore cents, up from 0.46 cent a year ago.

For the nine-month period, net profit was 138 per cent higher at S$22.94 million, while revenue rose 61 per cent to S$107.91 million, contributed by the structural steel business.

As at June 7, TTJ's project order book stood at S$68 million, and it expects to complete a substantial amount of these projects between FY16 and FY17.

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

Cash and cash equivalents stood at S$64.56 million, down from S$80.5 million a year ago.

The counter closed unchanged at 29 Singapore cents on Tuesday.