VS Industry’s 2Q net profit falls to RM30.36mil

KUALA LUMPUR: VS Industry posted a lower net profit of RM30.36 million for the second quarter (2Q) ended Jan 31, 2023, compared to RM44.49 million in the previous corresponding quarter.

Revenue, however, increased 13.1 per cent to RM1.15 billion from RM1.01 billion previously, mainly contributed by its Malaysia segment due to higher orders from key customers.

In a filing with Bursa Malaysia today, the electrical and electronics manufacturer attributed the lower net profit to foreign exchange losses and higher financing costs.

For the first six-month period ended Jan 31, 2023, VS Industry’s net profit increased to RM91.07 million from RM83.88 million, and revenue improved 23.2 per cent to RM2.44 billion from RM1.98 billion previously.

It said that its Singapore segment, which acts as the marketing arm for Malaysia operations, recorded a lower profit before tax for the current quarter and cumulative quarters in line with lower sales orders from a key customer.

"For the current quarter, the Indonesia segment recorded lower profitability despite an increase in revenue mainly owing to unfavourable foreign exchange. For the cumulative quarters, profit before tax was higher in tandem with the increased revenue.

"The China segment continued to sustain losses given the highly challenging environment in the country. In the absence of large orders, the low revenue base was insufficient to cover fixed costs,” it said.

The group also declared a second interim dividend of 0.3 sen net per share for the financial year ended July 31, 2023, to be paid on April 28, 2023.

On prospects, VS Industry said the group is fully prepared to overcome any challenges that might arise, supported by its experienced management, track record and solid balance sheet. - Bernama

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