DPS is confident to remain profitable in the financial year ending March 31 (FY21) as the group will focus on developing affordable housing projects to drive its profitability.
KUALA LUMPUR: Diversified group DPS Resources Bhd
’s (DPS) net profit fell 57.1% to RM4.67mil in the third quarter (Q3’21) ended Dec 31, from RM10.91mil a year ago dragged down by its investment holdings segment.
However, in a filing to Bursa Malaysia, it said the group’s revenue rose 82.1% to RM24.38mil in the quarter compared to RM13.39mil a year ago driven by higher volume sales of rental of building with comprehensive services and property development sales.
The rental of building with comprehensive services segment’s revenue increased by RM1.35mil for the Q3 compared to the preceding quarter a year ago.
“Due to the increased demands from tenants to provide rental with comprehensive services, the group had reclassified other income into revenue source of rental of building with comprehensive services, ” it added.
Meanwhile for the property development segment, DPS posted a revenue increase of RM8.53mil for the Q3 compared to the preceding quarter a year earlier.
“The positive growth of revenue has proven the resilience of the group and improvement of the result from developing affordable housing projects.” DPS said.
The group noted that its furniture manufacturing and trading segment was badly impacted by the movement control order and lockdowns announced on March 18 last year.
The segment’s revenue was down by RM0.69mil in the Q3 compared to the preceding quarter, while its profit before tax saw an increase of RM0.51mil in the quarter.
Moving forward, DPS is confident to remain profitable in the financial year ending March 31 (FY21) as the group will focus on developing affordable housing projects to drive its profitability.
“The group’s financial performance would likely improve as it will benefit from the outlook of the global furniture industry as the future prospects of its furniture products are encouraging, ” it said.
