Yongnam Holdings, the structural steel contractor and specialist civil engineering solutions provider, says net profit climbed 35.5% to $13.8 million in the three months ended March 31, 2010 (1QFY2010) from $10.2 million in the previous corresponding quarter (1QFY2009).

However, group revenue decreased to $84.2 million in 1QFY2010, 13.1% lower than the $96.8 million achieved in 1QFY2009, which included contributions from the New Delhi Airport project and the Dubai Metro project. The former had been completed in June 2009 and the latter was substantially completed by the third quarter of FY2009.

Consequently, revenue from Structural Steelworks decreased by 33.5% from $78.8 million in 1QFY2009 to $52.4 million in 1QFY2010. However, strong contributions from the MCE project boosted Specialist Civil Engineering revenue by 76% from $18 million in 1QFY2009 to $31.8 million in 1QFY2010.

The substantial increase in revenue from Specialist Civil Engineering led to a more balanced revenue mix. This, together with improved margins from Structural Steelworks, contributed to a 13.4% increase in gross profit, which climbed from $21.6 million in 1QFY2009 to $24.5 million in the current quarter, notwithstanding the lower revenue.