BRC Asia has reported a profit after tax of $11.7 million for the 1QFY2023 ended Dec 31, 2022.
During the period, its revenue came in at $341.3 million, while gross profit stood at $23.4 million.
Cash and cash equivalents stood at $112.7 million as at end-December.
The group’s sales orderbook stood at around $1.4 billion as at end-December with the duration of projects ranging up to five years.
To the group, the continued recovery of the demand in the local construction industry “bodes well” for its supply chain, which includes reinforcing steel.
That said, the industry faces short-term challenges in terms of escalating costs, in particular for labour and energy. Slower-than-usual site progress, resulting in lower-than-usual contractual offtake are also another one of the challenges faced by the industry at the moment.
See also: TDCX reports 1QFY2023 profit of US$20.5 mil, 22.5% higher y-o-y
The slower offtake is also driving more competition for new contracts, thereby compressing margins with firms striving to overcome the shortfall in delivery volumes.
However, the group says it believes that the local construction sector would “push ahead to fulfil the substantial number of projects that remained to be completed” once the “kinks are ironed out”.
Shares in BRC Asia closed 2 cents lower or 1.06% down at $1.86 on Feb 8.