KUALA LUMPUR: Datasonic Group Bhd reported a weaker set of financial results in the nine months ended Dec 31,2020 mainly due to lower supply of passports provided due to the Covid-19 and international travel curbs.
The security-related integrated ICT solution provider reported on Wednesday its 9M net profit fell by 73% to RM12.93mil from RM48.05mil in the previous corresponding period.
Its revenue declined by 42.8% to RM112.59mil from RM196.82mil mainly due to lower supply of passports provided as a result of the Covid-19 pandemic and international travel restrictions, it said.
In the third quarter ended Dec 31,2020, its net profit tumbled to RM627,000 from RM20.17mil a year ago.
Its revenue decreased by 60.7% to RM29.44mil from RM74.96mil. Earnings per share were 0.04 sen compared with 1.49 sen.
Datasonic chairman, Tan Sri Mohamed Hashim Mohd. Ali said the nine months financial performance was affected by the lower supply of passports provided.
“Nevertheless, this was anticipated by the Group given the challenging business environment. We expect demand of passports to surge once international travel restrictions are lifted as the passport is time-dated with a five-year validity. In turn, this would re-elevate our earnings to higher level, ” he said, Mohamed Hashim also said the second Movement Control Order had affected the supplies of MyKad, consumables and personalisation services, “which will inevitably impact our fourth quarter performance”.
“However, we believe the situation will soon recover as the Covid-19 immunisation plan is being rolled out locally and globally, ” he said.
Datasonic’s order book was about RM491mil as of Dec 31,2020.