PETALING JAYA: VS Industry Bhd returned to the black, posting a net profit of RM73.38mil in the third quarter ended April 30, 2021 (Q3) mainly driven by the surge in revenue due to higher sales orders from existing key customers coupled with favourable product sales mix in Malaysia.
In a filing with Bursa Malaysia, the group said its revenue jumped to RM1.07bil in the quarter for the first time from RM505.66mil a year ago on the back of higher sales orders from existing key customers.
“This is notwithstanding the fact that sales generated from Malaysia in the previous corresponding period were significantly affected by the implementation of the movement control order (MCO).
“The surge in sales, in addition to a higher profit margin arising from a favourable product mix has led to a record third-quarter and nine-month profit before tax of RM99.7mil and RM271.2mil respectively for Malaysia, ” he added.
For the nine-month period ended April 30, the group’s net profit jumped 230% to RM203.85mil compared to RM61.74mil in the corresponding period a year ago
Its revenue also surged 29.7% to RM3.06bil compared to RM2.36bil in the corresponding period a year ago.
The group has declared a third interim payout of 0.8 sen per share.
Meanwhile, the group’s new facilities in i-Park at Senai Airport City are on track to be completed in the next few months.
“The production of certain new models would take place at the new facilities thereafter, along with the relocation of VS Industry’s headquarters to the new buildings, ” it noted.
Given the latest full MCO, VS Industry believes that the renewed restrictions may impact its Q4 of financial year 2021 results, as the situation remained uncertain with the surge in Covid-19 cases.
On the demand outlook, it said orders across key customers remained healthy and robust.
“There are also several new product models coming into production progressively over the coming quarters.
“Management is optimising the production output while complying with the standard operating procedures stipulated by the authorities, ” it noted.
Moving forward, it expects the financial performance of the group for the remaining quarters to remain satisfactory with the prudent planning and careful execution by the management.
“On balance, the board is cognisant of the prevailing challenges.
“The leadership is fully hands-on managing the situation to deliver an optimal outcome for clients while keeping employees safe, ” the group said.