6 days ago
Binastra doubles revenue and profit in FY25 on contract wins
PETALING JAYA: Construction company Binastra Corp Bhd believes it is well-prepared to sustain its growth momentum and build on the transformative progress achieved so far.
Chairman Tan Sri Samshuri Arshad said the outlook for Malaysia's construction industry remains positive, supported by continued public infrastructure spending and a recovering private sector.
'We are optimistic that government-led development initiatives will continue to generate ample opportunities for construction players in the coming years.
'While we remain mindful of global economic uncertainties and potential headwinds, we are confident that our solid fundamentals and agile strategy will keep us on a strong growth trajectory,' he said in the company's annual report.
For the financial year ended Jan 31, 2025 (FY25), Binastra's revenue stood at RM946.6mil, a 122.6% year-on-year (y-o-y) increase compared to RM425.2mil in FY24 – driven by strong project execution and robust contract wins.
Cost of sales rose in tandem with the increase in revenue.
Meanwhile, net profit also surged to RM90.3mil, marking a 121.3% y-o-y increase from RM40.8mil, underpinned by efficient cost control and higher project contributions.
The substantial rise in revenue and profitability was mainly driven by accelerated progress of construction activities, improved operational efficiencies, and strategic expansion into new market segments.
The group's order book reached a historic high of RM3.6bil, providing robust earnings visibility for the next few years.
With a record order book in hand, Samshuri said Binastra is prioritising the timely and high-quality completion of its projects to reinforce its reputation and secure repeat business.
'At the same time, we will pursue selective new contracts that complement our strengths and enhance our portfolio.
'Building on our success in Sabah, we intend to seek further projects in other high-growth areas such as Johor Baru, where we have established a new branch.'
Samshuri added that Binastra will continue to explore projects in emerging segments like data centres, renewable energy facilities and infrastructure.
Separately, he said FY25 was a milestone year of strategic expansion for Binastra, as the group made significant headway in broadening its reach and capabilities.
'Notably, we secured our first-ever project in Sabah, marking the group's entry into East Malaysia. This landmark contract extends our footprint beyond Peninsular Malaysia and validates our ability to deliver in new markets.'
This achievement not only boosted the group's order book, but also positioned Binastra as a truly national construction player, said Samshuri.
'We are proud to be part of Sabah's growth story and see this as the first of many opportunities in the region.'
In line with the group's diversification strategy, he said the company also ventured into unconventional construction projects during the year.
'A key highlight was the award of a project to design and build a membrane bioreactor for a sewage treatment plant, valued at RM155mil.
'Undertaking this infrastructure project represents an important extension of our portfolio beyond typical building projects.
'It demonstrates Binastra's engineering expertise and adaptability to critical public-oriented works, while providing a new long-term revenue stream for the group.'
