LITRAK-Why Lin Yun Ling’s crying poor is disingenuous at best
|by Ganesh SahathevanLin Yun Ling of Litrak and Gamuda is reported to have said:
The public should not misconstrue Litrak’s RM80mil net profit for the year ended March 31, 2006 as being a huge profit, he said, given that the net cash that flowed into Litrak’s coffers in fiscal 2006 only came to RM6mil. “The true measure of Litrak’s financial performance is in the cash flow. It shows how much revenue was collected, how much was operation expenses and how much debt was repaid,” he told reporters after the company AGM yesterday. He said despite the toll hike, the bulk of the revenue would go towards repaying Litrak’s loans over the next eight years. The concessionaire’s loans presently stand at some RM800mil.
The statement is disingenuous at best for THREE reasons:
First,Litrak’s margin’s as shown below, beat even those gaming companies:
Second, “the net cash that flowed into Litrak’s coffers in fiscal 2006 only came to RM6mil” AFTER about RM 35 MILLION was paid in dividends to shareholders, of which Ling’s GAMUDA is THE LARGEST, and in which he is among the largest shareholders.
In any case, cash generated from operations was RM 197,445,000 up from RM 64,953,000 the year before. Cash generated from operations in 2006 compares to profits from operations of RM 116,078,000 -ie LITRAK is one of few companies whose cash flow from operations actually EXCEEDS its profits,and as shown above this is an already substantial margin on earnings.
THIRD, Ling cries that despite the toll hike, the bulk of the revenue would go towards repaying Litrak’s loans over the next eight years.
Poor man seems to have forgotten that these loans went to pay for construction costs, which at about RM26 million per kilometre was 6.5 to 2.6 times HIGHER than the RM4 million to RM11 million spent constructing the North-South Highway (see story below)
And the name of the contractor? Gamuda Bhd-see http://www.gamuda.com.my/GAMUDA03/projects_expressway.htm