KUALA LUMPUR: Steelmaker Tashin Holdings Bhd said earnings in the first quarter jumped on strong demand and rising selling prices.
Net profit in the three-month ended March 31 surged to RM12.2mil from RM724,000 made a year ago.
Revenue surged 55% to RM95.2mil.
Revenue from steel processing products increased by 45% to RM68.8mil, while steel manufacturing products soared 91% to RM26.4mil.
“The Company experienced improved sales for its steel products and profit margin during 1QFY2021 as the economy saw a gradual return to normalisation while business sentiments improved after one year of the Covid-19 pandemic," managing director Lim Choon Teik said in a press release today.
Lim expect the economic recovery to lift demand in the steel processing segment and steel pipes business, as well as increased sales order from automotive segment.
But he cautioned that the shortage of certain types of steel material such as cold rolled materials may post a challenge to the Company’s operations.
“Barring unforeseen circumstances, the Board is cautiously optimistic that the Company’s prospects for the coming quarter would remain positive and satisfactory due to higher demand in the steel processing segment and steel pipes and increased sales order from automotive segment,” he said.