OCR Group Berhad (OCR) reported a significant increase in profit after tax to RM2.5 million in the first quarter ended 31 March 2022 (1Q22) from RM0.1 million the previous corresponding quarter, owing to a rebound in sales and progress billings for ongoing projects, as well as one-off gains from the acquisition of OCR Selayang Industrial Park in March 2022.
The company's 1Q22 revenue increased by 10.1 percent year on year to RM24.7 million from RM22.5 million in the previous quarter, owing to its current property development projects, including Isola in KLCC, PRIYA Kuantan affordable homes, and The Mate in Damansara Jaya. The Group also recorded revenue from the YOLO Signature Suites building project in Bandar Sunway.
OCR's financial condition remained strong, with a net gearing of 0.46 times as of March 31, 2022, despite the company's second consecutive successful quarter. This gives the Group enough leeway to use leverage if the situation calls for it.
"Since the constraints were relaxed in the fourth quarter of 2021, OCR has been able to quickly speed construction activities on-site, resulting in a notable increase in financial performance." This year, we plan to build on this excellent momentum by completing the vacant possessions of PRIYA Kuantan affordable housing and OCR Selayang Industrial Park.
Nonetheless, we remain watchful in the face of industry concerns, particularly the significant rise in raw material and labor costs. To address this, we've taken a number of actions, including proactively controlling procurement procedures and contractors, as well as incorporating cutting-edge construction technologies into our projects.
Nonetheless, we expect that consumer spending will rebound and that demand for low-cost housing and high-quality niche products will remain strong. As a result, we'll keep an eye on the entire environment for the best time to launch new property developments in the second half of 2022."
OCR's profit after tax increased 318.0 percent to RM0.6 million in the fourth quarter ended December 31, 2021 (4Q21), on 68.7 percent greater revenue of RM14.7 million.
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