Gamuda's Current Receivables Issue

Here is the link to Gamuda’s earnings report announced in March 2008, Quarterly rpt on consolidated results for the financial period ended 31/1/2008

It reported quarterly net earnings of 90.107 million.

What interested me most was their Balance Sheet.

Now Gamuda latest earnings was reported on 25th June 2008, Quarterly rpt on consolidated results for the financial period ended 30/4/2008, where it reported a net earnings of only 76.105 million.

Yes, the quarterly decline in net earnings was a worry but the most troubling issue was the receivables. Take a look at their balance sheet reported below.

Receivables soared to 1.012 Billion. Up a whopping 419.447 million if compared to the previous quarter! (Amount due for construction works fell from 514.410 million to 373.335 million when compared to the previous quarter)

Rather baffling if you ask me since Gamuda revenue for the quarter was only 562 million, so how could receivables raise so much for the quarter?

How?

If you are an 'investor' would this be a real issue for you?