SMRT went off track as profit crashed 26% to $61.9m

It also raked in a hefty $25m operating loss.

According to OCBC, SMRT reported a 2.9% YoY growth in its 4QFY14 revenue to S$289.5m. PATMI of S$16.9m was a reversal from a net loss of S$11.9m in 4QFY13.

Excluding a one-off S$17.3m impairment of interest in an associate in 4QFY13, SMRT’s 4QFY14 PATMI still grew by 215.2%.

Here's more from OCBC:

For FY14, revenue climbed 4.0% to S$1,163.9m, in line with our forecast of S$1,166.7m. PATMI dipped 25.7% to S$61.9m but still exceeded our expectations by 11.9% due largely to higher-than-expected ‘other operating income’. A final DPS of 1.2 S cents was declared, bringing FY14 dividends to 2.2 S cents/share (yield of 1.8%).

This was lower than the 2.5 S cents DPS paid out in FY13 but ahead of our 1.8 S cents/share forecast. 

SMRT raked in an operating loss of S$25.0m in FY14 from its Fare business (FY13: operating profit of S$32.3m) but this was mitigated by a 12.4% growth in operating profit from its Non-Fare business to S$106.4m.

We expect improvement from its Fare business ahead, given the recently implemented fare adjustment exercise and efforts to manage its costs and bolster productivity gains.