MTD Walkers PLC recorded a net loss of Rs.55.5 million for the December quarter (3Q16) against a net profit of Rs.195.6 million reported in the corresponding quarter of the previous year, the interim financial accounts showed. 

The loss per share (LPS) for the quarter was 33 cents, against earnings per share (EPS) of Rs.1.71 year-on-year (yoy).

The performance of the integrated construction company aptly demonstrates the sharp slowdown the country’s construction sector has been experiencing since last year.  

MTD Walkers Executive Deputy Chairman Jehan Amaratunga however expressed confidence as the new government remains committed to infrastructure development with many countries coming forward to fund development activities in Sri Lanka. 

“The group is now poised to return to a high growth phase leveraging on structural changes made during the slowdown experienced earlier this year,” he said. 

The revenue for the quarter fell 28.3 percent yoy to Rs.2.74 billion. Despite the fall in revenue, the group was able to reduce cost of sales 35.6 percent yoy to Rs.2.07 billion.

This resulted in a gross profit of Rs.675.9 million, up 9.3 percent yoy.

However, higher administrative expenses, which rose 41.7 percent yoy to Rs.334.6 million, undermined a gains at the top line, resulting in an operating profit of Rs.331 million, down 10.4 percent yoy.

The group’s finance costs for the period rose 65.2 percent yoy to Rs.304.2 million, while finance income rose 116.8 percent yoy to Rs.39.8 million. The net finance cost rose 59.4 percent yoy to Rs.264.3 million. 

MTD Wakers raised Rs.3 billion in September, last year by way of a debenture issue. 

The group’s interest bearing borrowings under current liabilities stood at Rs.7.27 billion as at December 31, 2015 compared to Rs.4.95 billion as at December 31, 2014.  The net asset per share fell to Rs.46.41 from Rs.48.

For the 9 months ended December 31, 2015, the group reported a net loss of 265.5 million against a net profit of Rs.827.2 million.

The LPS for the period was Rs.1.58 against an EPS of Rs.2.23.

The revenue fell 34.7 percent yoy to Rs.7.19 billion and gross profit fell 36 percent yoy to Rs.1.36 billion. 

A segmental analysis for the 9 months showed both revenue and profit of the group’s main civil engineering sectors slumping. 

The revenue fell to Rs.6.21 billion from 9.66 billion yoy while post-tax profit fell to Rs.187.7 million, from Rs.1.19 billion.

The engineering segment also saw its revenue declining to Rs.196.8 million from Rs.369.7 million. The segment reported post-tax loss of Rs.184.4 million against a post-tax profit of Rs.34.7 million.

Despite significantly lower revenue, the power generation business of the group reported a post tax profit of Rs.81.5 million, against a net loss of Rs.56.9 million.

Real estate and trading businesses, which the group entered this financial year reported post-tax profit of Rs.76.1 million and a post-tax loss of Rs.456.5 million, respectively. 

The marine engineering business saw its post-tax profits edging down slightly to Rs.10.8 million from Rs.19.9 million, despite higher revenue of Rs.64.2 million compared to Rs.33.5 yoy. 

As at December 31, 2015, Malaysia’s MTD Capital Bhd held 90.78 percent of the issued shares of the company.