Greetings, fellow investors and market enthusiasts! It’s that time of the quarter again when we delve into the latest financial pulse of our Malaysian corporate giants. Today, we’re dissecting the Interim Financial Report for YTL Corporation Berhad for the period ended 31 March 2025. This report offers a fascinating glimpse into the conglomerate’s performance, showcasing a mix of growth in some areas and strategic adjustments in others, all while navigating a dynamic market landscape. From solid revenue figures to a significant dividend announcement for the prior fiscal year, there’s plenty to unpack. Let’s dive in and see what YTL’s latest numbers tell us about its journey forward!
YTL Corporation’s Q3 FY2025 Performance: A Snapshot
YTL Corporation has reported its performance for the third quarter and the nine months ended 31 March 2025. While the Group saw an increase in revenue for both periods, its profit before tax experienced a decline when compared to the corresponding periods last year. Let’s break down the key figures:
Quarterly Performance (Q3 FY2025 vs. Q3 FY2024)
Revenue: RM7,318.9 million
A slight increase of approximately 1.55% from RM7,207.4 million in the preceding year corresponding quarter.
Profit Before Tax: RM986.7 million
A decrease of approximately 8.57% from RM1,079.2 million in the preceding year corresponding quarter.
Profit for the Period (Net Profit): RM735.4 million
A decrease of approximately 11.64% from RM832.3 million in the preceding year corresponding quarter.
Basic Earnings Per Share: 3.81 sen
A decrease of approximately 15.90% from 4.53 sen in the preceding year corresponding quarter.
Cumulative Performance (9 Months Ended 31 March 2025 vs. 31 March 2024)
Revenue: RM23,151.7 million
An increase of approximately 4.01% from RM22,258.5 million in the preceding year corresponding period.
Profit Before Tax: RM3,182.0 million
A decrease of approximately 10.85% from RM3,569.2 million in the preceding year corresponding period.
Profit for the Period (Net Profit): RM2,404.2 million
A decrease of approximately 14.20% from RM2,802.3 million in the preceding year corresponding period.
Basic Earnings Per Share: 12.08 sen
A decrease of approximately 17.60% from 14.66 sen in the preceding year corresponding period.
Segmental Performance Insights (Q3 FY2025 vs. Q3 FY2024)
Digging deeper, the report reveals varied performance across YTL’s diverse business segments:
| Segment | Revenue (RM’000) – Q3 FY25 | Revenue (RM’000) – Q3 FY24 | Revenue Change (%) | PBT (RM’000) – Q3 FY25 | PBT (RM’000) – Q3 FY24 | PBT Change (%) | Key Drivers/Reasons |
|---|---|---|---|---|---|---|---|
| Construction | 132,250 | 130,584 | +1% | (40,193) | 9,448 | -525% | Higher work volumes, but loss due to inter-segment profit elimination and additional costs for major third-party contract extension. |
| Cement & Building Materials Industry | 1,571,268 | 1,329,961 | +18% | 327,012 | 204,955 | +60% | Increased revenue from NSL Ltd. consolidation. Higher profit from improved operational efficiencies, lower production/borrowing costs, and no share option costs. |
| Property Investment & Development | 190,320 | 91,822 | +107% | (7,373) | 8,801 | -184% | Revenue boosted by office building sale. Loss due to fair value loss on investment properties and absence of unrealised foreign currency translation gains. |
| Management Services & Others | 383,736 | 268,092 | +43% | 51,639 | 63,189 | -18% | Revenue up from consultancy fees (Ranhill Utilities). Profit declined due to non-cash foreign exchange loss, partially offset by higher JV profit. |
| Hotel Operations | 503,262 | 484,861 | +4% | 152,493 | 123,801 | +23% | Stronger performance driven by higher occupancy rates and average room rates across key properties. |
| Utilities | 4,538,030 | 4,902,074 | -7% | 503,162 | 669,037 | -25% | Power Generation saw lower revenue/profit due to lower pool/retail prices and stronger Ringgit vs SGD. Water & Sewerage revenue up (price increase, Ranhill Utilities), profit improved (price increase, receding inflationary pressures). Telecommunications revenue up (project revenue), loss reduced. |
Financial Health and Cash Flow Dynamics
Beyond the income statement, YTL Corporation’s balance sheet and cash flow statements offer crucial insights into its financial health and operational efficiency.
Statement of Financial Position (As at 31 March 2025 vs. 30 June 2024)
Total Assets: RM96,237.3 million
Increased by approximately 8.39% from RM88,790.6 million.
Total Equity: RM24,524.1 million
Increased by approximately 1.51% from RM24,160.1 million.
Total Liabilities: RM71,713.2 million
Increased by approximately 10.96% from RM64,630.5 million, reflecting increased borrowings to fund growth and investments.
Net Assets per share: RM1.50
A slight increase from RM1.49.
Cash Flow Highlights (9 Months Ended 31 March 2025 vs. 31 March 2024)
Net Cash from Operating Activities: RM4,557.2 million
A decrease of approximately 5.67% from RM4,831.4 million.
Net Cash Used in Investing Activities: RM(5,527.7 million)
A significant increase in outflow of approximately 88.43% from RM(2,933.6 million), indicating substantial investments in property, plant, and equipment, as well as acquisitions.
Net Cash From Financing Activities: RM6,748.5 million
A positive shift from an outflow of RM(2,252.4 million) in the previous period, primarily driven by proceeds from bonds and borrowings.
Cash and Cash Equivalents at Period End: RM19,112.8 million
A robust increase of approximately 36.27% from RM14,026.2 million, reinforcing the Group’s liquidity position.
Dividends
For the financial year ended 30 June 2024, an interim dividend of 4.5 sen per ordinary share was paid on 29 November 2024, amounting to RM496.8 million. No dividend was declared for the current financial quarter ended 31 March 2025.
Navigating Risks and Charting Future Prospects
YTL Corporation’s report also provides a forward-looking perspective, outlining strategies to mitigate risks and capitalize on emerging opportunities across its diverse portfolio.
Strategic Outlook by Segment:
- Construction: The Group is focused on ensuring its domestic construction projects, including data centers, remain on track and actively seeks to replenish its order book despite a competitive environment.
- Cement and Building Materials: Domestic demand is expected to remain stable, supported by key sectors like civil engineering, residential, infrastructure, logistics, data centers, and factories. The upcoming Johor-Singapore Special Economic Zone (SEZ) is anticipated to be a new growth catalyst. YTL also aims to leverage export opportunities through its Langkawi Plant and maintain operational efficiencies amidst broader economic volatility and inflationary pressures.
- Property Investment & Development: The Group foresees gradual market improvement and increased demand, buoyed by positive measures in the 2025 Budget, such as the expanded Housing Credit Guarantee Scheme. Efforts will continue to enhance sales and marketing strategies and launch new projects. YTL is optimistic about achieving a satisfactory overall performance for the financial year ending 30 June 2025.
- Hotel Operations, Management Services & Others: The hospitality sector is expected to maintain a positive outlook in key operating jurisdictions. The Group is proactively managing its business portfolio to protect long-term prospects and deliver sustainable value.
- Utilities:
- Power Generation: YTL PowerSeraya has commenced construction of a 600MW hydrogen-ready Combined Cycle Gas Turbine (CCGT) in Singapore, underscoring its commitment to sustainable practices. Electricity demand is expected to remain stable, with a focus on customer service, operational efficiency, and diversification into integrated multi-utilities supply. A significant move includes developing a 500MW large-scale solar power facility in Kulai Young Estate to co-power a 500MW green data center park, aligning with the Group’s shift towards renewable energy.
- Water & Sewerage: Wessex Water is awaiting the outcome of a Competition and Markets Authority (CMA) referral regarding its business plan for 2025-30, which could impact its allowed expenditure. Meanwhile, it continues to explore low-risk organic growth opportunities.
- Telecommunications: The YES #FirstTo5G and Infinite data plans continue to drive subscriber growth, with plans to extend 5G services nationwide in tandem with Digital Nasional Berhad’s rollout. The segment aims to increase its subscriber base through affordable plans, innovative 5G services, and strategic partnerships.
- Investment Holding Activities: The YTL Green Data Center Park in Kulai Young Estate, Johor, is progressing, with Phase 1 operational. This facility is set to be Malaysia’s first data center campus co-powered by on-site renewable solar energy, targeting growing regional demand for eco-friendly solutions. Additionally, Ryt Bank, YTL’s digital banking venture with Sea Limited, commenced operations in December 2024, aiming to provide meaningful and inclusive financial services to underserved segments by leveraging AI.
Potential Challenges and Risks:
While the outlook is generally positive, the report acknowledges several challenges:
- Construction: The segment faces a competitive landscape and has incurred additional costs due to the extension of a major third-party contract.
- Cement and Building Materials: The segment remains exposed to broader economic volatility, inflationary pressures, and global economic and geopolitical uncertainties.
- Property Investment & Development: Market sentiments can fluctuate, requiring continuous review of sales and marketing strategies.
- Management Services & Others: This segment experienced a non-cash foreign exchange loss from a shareholder loan to a Jordan project entity.
- Utilities (Power Generation): Performance was affected by lower pool and retail
