KUALA LUMPUR: Elk-Desa Resources Bhd
plans to expand its hire purchasing portfolio but continues to monitor the increasing pressure in collections and recovery.
"Moving forward, we expect the domestic economy to remain resilient but we are also mindful that consumer spending as well as our customers’ ability to service their loans on time may be affected by the rationalisation of subsidies and price controls along with potential fluctuations in commodity prices.
“ELK-Desa will be striving towards reducing its impaired loans ratio further by sustaining an active loan recovery effort while at the same time, carefully expanding our hire purchase receivables in a strategic and sustainable manner,” said executive director and chief financial officer Teoh Seng Hee in a statement.
In the second quarter ended Sept 30, 2024 (2QFY25), Elk-Desa posted a net profit of RM8.26mil, down from RM8.84mil in the year-ago quarter, as it recorded higher hire purchase receivables from the previous year.
Hire purchase receivables as at Sept 30, 2024, stood at RM693.97mil, which is 18% higher than the
previous year and marked the highest level recorded for the group.
Consequently, the group's bank barrowings grew 26% to support the increase in hire purchase receivables. The group's gearing stood at 0.64 times as compared to 0.52 times a year earlier.
The group's earnings per share slipped to 1.82 sen from 1.94 sen previously while revenue rose to RM46.44mil from RM39.2mil.
Over the six months period (1HFY25), Elk-Desa's net profit was RM16.4mil against RM17.34mil in the year-ago period while revenue rose to RM92.32mil from RM78.38mil in 1HFY24.
The board of directors declared an interim dividend of two sen per share, payable on Dec 18, 2024.
