PETALING JAYA: Oriental Interest Bhd’s net profit fell 22.5% to RM11.70mil in the first quarter ended Nov 31, 2021 (Q1’FY22) from RM15.09mil a year ago mainly dragged by lower revenue from both the property development and general construction segments.

       In a filing with Bursa Malaysia, the group said its revenue also dropped around 12% to RM76.91mil in the quarter compared to RM87.47mil in the corresponding period a year ago.

       Oriental said revenue from the property development segment fell by 14% which resulted in a 30% decrease in pre-tax profit, principally due to the completion of some projects during the reporting quarter.

       “As for the general construction segment, a general slowdown in the industry affected its performance causing a 33% drop in billings to external customers and a 78% drop in pre-tax profit.”

       However, Oriental noted that revenue and profit before tax from its oil palm cultivation segment jumped by 146% and 357%, respectively, driven by both stronger crude palm oil prices and better harvesting during the quarter.

       “The group started the new financial year strong with revenue surging to RM76.92mil from RM60.74mil in the last financial quarter of financial year 2021 ended Aug 31, 2021 (FY21) as we build on the growth momentum going forward.

       “As of Nov 30, 2021, the group has total unbilled sales at RM303.65mil which will provide strong visibility for revenue and cashflow for the year under review,” it said.

       Moving forward, Oriental said it continues to look out for land acquisition and joint venture opportunities to add to its current land banks of 1,848 acres.

       “Given the strong numbers for unbilled sales in the near future, the group is confident of delivering a strong performance in FY22 and will continue its prudent business strategy to ensure sustainable growth,” it added.