“YTL Corp reports RM419.38 mil net profit for 3QFY2025. Cement segment surges 81%, while utilities drag down group earnings. No dividend declared.“
Kuala Lumpur, 23th May 2025, 12.05pm – YTL Corporation Berhad reported a 15.5% year-on-year decline in net profit for the third quarter ended 31 March 2025 (3QFY2025), posting RM419.38 million compared to RM496.23 million a year earlier. The drop was primarily attributed to lower contributions from its utilities arm, YTL Power International Bhd, despite a strong performance by Malayan Cement Bhd.
Revenue for the quarter edged up slightly by 1.5% to RM7.32 billion from RM7.21 billion in 3QFY2024, according to the group’s filing with Bursa Malaysia on Thursday. No dividend was declared for the period.
Weaker Utilities Segment Pulls Down Group Earnings
The group’s largest earnings contributor, the utilities segment via YTL Power—where YTL Corp holds a 48.45% direct and 6.41% indirect stake—saw a notable reduction in profitability. YTL Power’s net profit declined 30% to RM489.41 million from RM698.69 million, while revenue dropped 5.2% to RM4.89 billion.
This decline was attributed to lower pool and retail electricity prices in the power generation division, along with the impact of the strengthening ringgit against the Singapore dollar. The foreign exchange movement affected earnings from its Singapore operations, notably PowerSeraya.
Cement Segment Delivers Robust Growth
In contrast, YTL Corp’s cement and building materials segment—driven by its 72.09% indirectly owned Malayan Cement—registered a robust 80.6% surge in net profit to RM182.84 million, up from RM101.24 million in the same quarter last year. Revenue remained stable at RM1.1 billion.
The improved performance was bolstered by enhanced operational efficiencies, lower production and borrowing costs, and the consolidation of newly acquired NSL Ltd into its financials.
Hospitality Business Improves Amid Tourism Rebound
YTL’s hospitality operations also recorded positive momentum, supported by higher occupancy rates and better average room rates across its hotel portfolio.
YTL Hospitality REIT, in which YTL Corp owns a 55% direct and 3.63% indirect stake, saw net property income remain steady at RM79.71 million (3QFY2024: RM79.79 million), although revenue declined 5% year-on-year to RM141.1 million.
Cumulative Nine-Month Results
For the first nine months of FY2025, YTL Corp reported a net profit of RM1.33 billion, down 17.1% from RM1.61 billion in the same period last year. Cumulative revenue, however, increased by 4% to RM23.15 billion from RM22.26 billion.
Outlook: Stable Demand for Cement and Utilities
Looking ahead, YTL Corp expects continued resilience in the cement and building materials sector, supported by steady domestic construction demand. The utilities segment is anticipated to maintain stable performance, with a focus on operational efficiency and service enhancement.
The company also highlighted plans to explore multi-utilities integration and green energy diversification beyond its core businesses.
Market Reaction
On Bursa Malaysia:
- YTL REIT units remained unchanged at RM1.05, maintaining a valuation of RM1.79 billion.
- YTL Corp shares ended five sen or 2.45% lower at RM1.99, giving the group a market capitalisation of RM22.11 billion.
- YTL Power shares gained six sen or 1.69% to close at RM3.60, valuing the entity at RM29.8 billion.
- Malayan Cement shares rose five sen to RM4.85, with a market value of RM6.54 billion.
