STEEL company TTJ Holdings on Wednesday reported an 81 per cent fall in net profit for its fiscal first quarter on weaker sales.
Net profit for the three months ended Oct 31, 2017 stood at S$760,000, compared to S$4.08 million a year ago. This translated to earnings per share of 0.22 Singapore cent, down from 1.17 Singapore cents.
Revenue fell 49 per cent to S$13.6 million, mainly due to the decrease in structural steel business, and the expiry of tenure for the dormitory at Terusan Lodge I resulting in no revenue contribution from the dormitory business.
The group's gross profit margin stood at 15.9 per cent in the first quarter of fiscal 2018. This was weaker than the gross profit margin in the year-ago quarter of 20.4 per cent, due to better gross margins derived from the projects executed during the reporting period and contribution from its dormitory business.
As at Dec 6, 2017, TTJ's projects order book stood at S$159 million, which it expects to "substantially complete" between fiscal 2018 and fiscal 2021. "The group continues to experience a healthy level of enquiries for a mix of public and private sector projects. Going forward, the group will continue to monitor its costs closely and enhance productivity to remain competitive," it said.
The company is pursuing new opportunities in the waste management and treatment business, efforts meant to diversify the business, it added.
Shares of TTJ closed on Wednesday at S$0.36, up half a Singapore cent.