Property developer Paramount Corporation Bhd saw its nett profit plunge 58.21 per cent to RM9.69 million in the first quarter ended March 31, 2016 (1QFY16), from RM23.19 million a year ago, due to dented sales in its property division.
For the same reason, its revenue declined 31.22 per cent to RM113.33 million in 1QFY16, from RM165 million in 1QFY15, its bourse filing this week showed.
Paramount said its property division’s profit before tax dropped 58 per cent to RM12.1 million in 1QFY16, due to a significant fall in revenue, as a result of lower progress billings and sales of its Sejati Residences in Cyberjaya, its Utropolis in Glenmarie, Shah Alam; as well as its Sekitar26 business development in Shah Alam.
Lower sales were also seen at the group’s Bukit Banyan development in Sg Petani.
On prospects, it said the property market will likely not recover any time soon from its current slump.
As such, its property division is moving to broaden its offering of affordable homes, in addition to current developments in Greenwoods Salak Perdana in Selangor and Bukit Banyan in Kedah, where demand remains positive.
It is also finalising plans for the roll out of its new development in Batu Kawan, Penang, which will mirror its Utropolis Glenmarie project concept of a university metropolis.