Sinarmas Land net profit up 78.7% to $63m in Q2

Thanks to its Indonesian division’s better operating performance.

Sinarmas Land Limited’s profit rose 78.7% to $63m in Q2, supported by its Indonesian division's higher revenue and better operating performance.

According to a press release, the company's total revenue for 1H rose 33.2% to $536.4m.

This was a result of higher sales of land parcels, a larger number of residential units handed over to homebuyers, and increased revenue recognition from apartments in BSD City, Indonesia.

For Q2, SML recognised $117.3m of revenue from sales of land parcel to its joint venture with Mitsubishi Corporation (PT BSD Diamond Development) for further joint development.

The company's gains from the transaction were previously not recognized in its income statement.

SML said, "The reversal of unrealised gain of S$42.7 million that represents the Group’s portion for gain on sales of land parcel to the joint venture adjustments have been made in the share of results of joint ventures, resulting in a loss of S$36.6 million for 1H 2017."