D.M. Consunji Inc. (DMCI), the construction arm of DMCI Holdings Inc. (PSE: DMC), saw its first-quarter standalone revenues increase 11 percent year on year from PhP3.1 billion to PhP3.5 billion mainly driven by building contracts, as infrastructure projects suffered delays resulting from unresolved right of way issues.
Revenues from high-rise building projects surged 52 percent from PhP1.1 billion to PhP1.7 billion while infrastructure projects dipped 5 percent to PhP883 million compared to PhP930 million during the same quarter last year.
Plant and utilities contracts dropped 32 percent from PhP459 million to PhP313 million while Energy projects declined 18 percent to PhP199 million from PhP244 million. Other project support businesses slid 12 percent to PhP244 million compared to PhP276 million last year.
On a standalone basis, DMCI recorded a net income PhP335 million from January to March, up 33 percent from PhP251 million the prior-year quarter. The higher than expected performance is due mainly to accounting and work-related timing issues, which will normalize in the coming quarters.
“The strong domestic economy is driving the property development sector and we expect to bag more building contracts in the coming quarter. New plant projects will also boost our order book,” said DMCI President Jorge A. Consunji.