KUCHING: High project costs have eroded the profits of Pansar Bhd’s construction and infrastructure business, the group’s largest revenue earner.
In the first nine-month period to Dec 31, 2024 (9mFY2025), the construction & infrastructure segment recorded a 3.5 per cent drop in operating profit to RM8.9 million (9mFY2024:RM9.2 million) despite a 6.6 per cent increase in the segment revenue to RM371.4 million (RM349.5 million).
“The revenue growth was attributed to project mix while the decline in operating profit was primarily due to higher project costs and lower other operating income,” said Pansar.
In the current financial period, Pansar posted higher group profit of RM24.3 million (9mFY2024:RM20.6 million) in tandem with increase in revenue to RM817.7 million (RM808.1 million). Earnings per share improved to 4.82sen from 4.43sen.
The marine and industrial segment was the second biggest revenue earner for the group, generating RM164.1 million, up 33.1 per cent from that recorded in 9mFY2024, driving its operating profit up by 47.1 per cent to RM29.5 million on improved sales.
However, the building & construction materials segment reported weaker revenue which slumped by 21.6 per cent to RM130.9 million but its operating profit rose 2.6 per cent to RM8.5 million.
The mechanical and electrical segment also fared poorly, with its revenue slipped by 24.6 per cent to RM63.3 million, resulting in operating profit to drop by 43.8 per cent to RM5.3 million.
On the other hand, the electrical and air conditioning segment performed better as evident by a 22.5 per cent jump in its revenue to RM36.4 million on higher sales, largely from M&E ancillary products, air conditioners and lighting products.
This pushed the segment operating profit higher by 8.7 per cent to RM2.2 million.
The agro engineering segment reported a 7.4 per cent drop in revenue to RM31.4 million because of lower sales of fertilizers.
The segment operating profit surged by 52.6 per cent to RM1.9 million, thanks to a favourable product mix and a reversal of impairment losses of trade receivables and operating expenses.
In 3Q2025, Pansar reported higher group net profit of RM9.2 million (3Q2024:RM7.4 million) as revenue climbed to RM309.9 million (RM256.6 million).
The current quarter earnings also bettered that of 2Q2025 when Pansar posted pre-tax profit of RM11.3 million (3Q2025:RM12.2 million) on lower revenue of RM263.4 million (RM309.9 million), with the improvement driven largely by higher operating profit from the marine and industrial segment.
Commenting on prospects, Pansar said the group is focused on delivering its ongoing projects on cost while managing risks and inflation factors, such as the higher minimum wage.
