S P Setia net profit declines on GST impact and incentive plan


PETALING JAYA: S P Setia Bhd posted a 21.2% drop in net profit to RM74.27mil in the second quarter ended April 30 from RM94.22mil despite a 26% expansion in revenue to RM952.4mil during the same quarter.
The property developer attributed the drop in earnings to the inclusion of the goods and services tax (GST) financial impact and long-term incentive plan expense, but did not elaborate.
Acting president and chief executive officer Datuk Voon Tin Yow said in a statement yesterday that the company was on track to achieve its RM5bil sales target for the financial year 2014.
It had already raked up RM3.2bil in sales in the first seven month up to May 31, despite slower sales achieved in the second quarter, Voon said.
“Property buyers are also adopting a more cautious approach in buying or investing with speculation rife on possible interest rate hikes in the second half of 2014,” he said.
According to Voon, the group is confident that it strong brand name, good product mix and solid cashflow position will enable it to ride out the challenging times.
“The group’s prospects remains positive going forward as we have unbilled sales of RM11.2bil that will contribute to earnings over the next few years,” he added.

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