Greetings, fellow investors and market watchers! Today, we’re diving deep into the latest financial revelations from Pasukhas Group Berhad, as they unveil their unaudited condensed consolidated results for the third quarter ended 31 March 2025. This report offers a crucial glimpse into the company’s operational health and strategic direction amidst a dynamic economic landscape.
While Pasukhas navigates a challenging quarter with an increase in losses, the report also sheds light on their strategic initiatives to bolster their construction division and explore new growth avenues. Let’s unpack the numbers and the narrative to understand what this means for the Group’s future.
Q3 FY2025: A Closer Look at the Performance
The third quarter for Pasukhas Group Berhad presents a mixed bag of results. While the Group saw an increase in revenue for the individual quarter compared to the same period last year, the year-to-date performance shows a slight dip. More significantly, the Group reported an increased loss before tax, primarily influenced by a lower gross profit from their Civil Engineering and Construction Services and a higher fair value loss on other investments.
Financial Snapshot: Q3 FY2025 vs. Q3 FY2024
Current Quarter (31.03.2025)
Revenue: RM17,624,000
Loss Before Tax: (RM6,218,000)
Loss for the Financial Period: (RM5,923,000)
Basic Loss Per Share: (3.09 sen)
Preceding Year Corresponding Quarter (31.03.2024)
Revenue: RM14,332,000
Loss Before Tax: (RM6,801,000)
Loss for the Financial Period: (RM6,811,000)
Basic Loss Per Share: (3.56 sen)
For the individual quarter, revenue saw a positive increase of approximately 23%, climbing from RM14.33 million to RM17.62 million. However, the Group still recorded a loss before tax of RM6.22 million, though this represents an improvement from the RM6.80 million loss in the same quarter last year.
Financial Snapshot: Year-to-Date FY2025 vs. YTD FY2024
Current Year To Date (31.03.2025)
Revenue: RM61,895,000
Loss Before Tax: (RM9,379,000)
Loss for the Financial Period: (RM9,246,000)
Basic Loss Per Share: (4.80 sen)
Preceding Year Corresponding Period (31.03.2024)
Revenue: RM62,526,000
Loss Before Tax: (RM6,095,000)
Loss for the Financial Period: (RM6,084,000)
Basic Loss Per Share: (3.13 sen)
Looking at the year-to-date performance, revenue slightly decreased by approximately 1.02% from RM62.53 million to RM61.90 million. The loss before tax widened to RM9.38 million from RM6.10 million in the preceding year corresponding period, indicating a challenging nine-month period for the Group.
Segmental Performance: Understanding the Contributions
Pasukhas Group’s revenue is primarily driven by its Civil Engineering and Construction Services. For the financial year-to-date:
- Civil Engineering and Construction Services: Contributed RM59.99 million in revenue, with a segment result of RM1.11 million. This segment remains the backbone of the Group’s operations.
- M&E Engineering Services: Generated RM1.89 million in revenue and a segment result of RM0.33 million.
- Renovation Services: A smaller segment, contributing RM0.02 million in revenue and a segment loss of (RM0.24 million).
Financial Health: Balance Sheet and Cash Flow Insights
As of 31 March 2025, Pasukhas Group’s financial position shows some shifts:
As at 31 March 2025
Total Assets: RM173,183,000
Total Equity: RM126,015,000
Net Assets Per Share: RM0.66
Cash and Bank Balances: RM6,512,000
As at 30 June 2024
Total Assets: RM189,050,000
Total Equity: RM135,261,000
Net Assets Per Share: RM0.71
Cash and Bank Balances: RM8,677,000
Total assets saw a decrease from RM189.05 million to RM173.18 million, while total equity also reduced from RM135.26 million to RM126.02 million. This led to a slight reduction in Net Assets Per Share from RM0.71 to RM0.66. Cash and bank balances also decreased, indicating higher operational cash outflows.
The Group’s total borrowings as at 31 March 2025 stand at RM10.68 million, comprising lease liabilities, a borrowing, and bank overdrafts. All borrowings are denominated in Ringgit Malaysia.
Outlook and Strategic Direction: Navigating Challenges, Seizing Opportunities
Despite the current financial quarter’s performance, Pasukhas Group maintains an optimistic outlook, particularly for its Construction Division. The Malaysian construction sector is expected to remain robust in 2025, driven by ongoing data centre and infrastructure projects. This provides a fertile ground for Pasukhas to grow.
Key Strategies and Future Prospects:
- Mitigating Costs: The Group is actively implementing measures to counter the impact of rising building material and labour costs.
- Operational Stability: Focus remains on ensuring the stability of business operations and financial position.
- Project Execution: Timely execution and completion of ongoing projects are paramount.
- Order Book Replenishment: Continuous bidding for new projects is a core strategy to replenish and expand the Group’s order book.
- Expansion into New Segments: A significant forward-looking move is the Group’s plan to expand into the River Sand Extraction and Trading segment, which could diversify revenue streams and enhance profitability.
Challenges on the Horizon:
While the prospects are encouraging, the Group is also navigating several material litigations. These include a tax appeal, a fraudulent trading suit, and multiple adjudication disputes related to construction contracts. The outcomes of these cases could have financial implications for the Group, and their resolution will be closely watched by investors. The ongoing global trade tensions also pose a broader economic challenge for Malaysia’s GDP growth, which could indirectly affect the construction sector.
Summary and Outlook: A Path Forward
Summary and
Pasukhas Group Berhad’s latest quarterly report highlights a period of increased losses, primarily stemming from operational challenges in their core construction segment and fair value losses on investments. However, the Group’s strategic focus on mitigating costs, ensuring project execution, and actively bidding for new contracts in a robust Malaysian construction sector paints a picture of resilience.
The planned expansion into the River Sand Extraction and Trading segment signals a proactive approach to diversification and long-term growth. While the ongoing litigations present a notable risk factor that warrants careful monitoring, the Group’s management appears committed to navigating these complexities and strengthening its financial position.
Key points to consider:
- The Group’s core Civil Engineering and Construction Services segment is facing profitability pressures, necessitating effective cost management.
- The expansion into River Sand Extraction and Trading could be a significant future growth driver, offering diversification.
- Multiple ongoing litigations introduce uncertainty and potential financial liabilities.
- The unutilised proceeds from the Rights Issue indicate capital available for strategic deployment, though its allocation timeframe needs to be observed.
This quarter’s report for Pasukhas Group Berhad reflects a company in a transitional phase, grappling with current challenges while actively charting a course for future growth and diversification. The emphasis on strengthening the construction division and venturing into new segments suggests a forward-thinking management team.
Do you think Pasukhas Group Berhad’s strategic shift into river sand extraction and trading will be a game-changer for its long-term profitability, or will the existing litigations continue to be a significant drag on its performance? Share your thoughts in the comments below!
