Cahya Mata’s net profit slips 5pct in Q1 to RM25.3mil

KUALA LUMPUR: Cahya Mata Sarawak Bhd’s net profit slipped five per cent to RM24.08 million in the first quarter ended March 31, 2026 (Q1 FY26) from RM25.34 million in Q1 FY25.

The company said that the decline was primarily due to one-off tax credit adjustment of RM7.3 million made in the same period last year.

Revenue for the quarter under review rose 13.1 per cent to RM278.45 million from RM246.1 million in the same period last year.

The increase was led by higher infrastructure activity in Sarawak, which lifted cement strategic business unit’s (SBU) revenue by 12.5 per cent and construction materials and trading SBU revenue by 192.5 per cent.

Property development SBU revenue also expanded, supported by construction progress on the RM550 million Borneo Convention Centre Kuching 2 contract.

These gains were partly offset by a 3.1 per cent decline in road maintenance SBU revenue, mainly due to lower work completions achieved for instructed works during the quarter, and a 45.7 per cent decline in oiltools SBU revenue, attributable to completion of contracts and reduced rig activity across most of its operating markets.

As at March 31, the group remained in a net cash position, with total cash and bank balances of RM585.5 million exceeding total borrowings of RM224.1 million. Its gearing ratio stood at 0.08 times.

Moving forward, the company said that the recent conflict in the Middle East has driven an increase in the costs of raw materials, logistics and diesel, which adversely affects costs and margins for the infrastructure-related SBUs.

“The heightened geopolitical risks have introduced additional cost uncertainty across the sector which may have an impact on economic activities. The group is actively monitoring market conditions and is implementing mitigation measures, where possible, to manage these cost pressures and protect margins,” it said.

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المصدر: New Straits Times