Mainboard-listed Thakral Corporation reported net profit attributable to shareholders rose 40% y-o-y to $2.4 million for the third quarter ended September 30, 2010 (3QFY2010). This is also more than double the net profit in the second quarter of $1.1 million, excluding the gain on the disposal of an investment in India.

The improved results, achieved despite slightly lower revenue, were due to the group’s focus on more profitable, higher margin distribution businesses while cutting back on businesses with slimmer margins. This resulted in lower turnover for 3QFY2010, down by 12% to $101.2 million. However, gross margin of 6.5% in 3QFY2010 was considerably higher than that earned in Q3FY2009.

Thakral also benefited from a foreign exchange gain of $1.2 million in 3QFY2010 compared to a loss of $0.16 million in the same corresponding period last year.

For the first nine months of FY2010, the group chalked up a net profit of $34.4.million versus $5.9 million in 9MFY2009. The improved performance was mainly due to the gain of $28.7 million from the sale of the group’s stake in Gateway Distriparks Limited. The profit in the previous corresponding period also included certain one-off gains, which did not recur this year.

The distribution business registered sales of $325.5 million for the first nine months of FY2010. This figure is comparable to that of the previous corresponding period.

The group’s property division realised a gain of $1.5 million from the disposal of a property in China during the first nine months of the year.

The group has also made progress in its real estate activities, making its first investment of $3.6 million in a property project in Australia. An additional $12 million has been allocated for identified real estate investments in Australia, which are expected to yield returns in excess of 15% p.a. compounded.

The overall gross profit for the nine-month period increased by 21% over the previous corresponding period primarily due to improved gross margins.

Thakral says it is optimistic of a profitable overall performance for the group in FY2010.