KUALA LUMPUR (May 31): Integrated engineering solutions provider Destini Bhd posted a 40.3% increase in net profit for the first quarter ended March 31, 2017 (1QFY17) to RM10.05 million, from RM7.17 million a year earlier.
 
The company attributed the increase to higher demand for the group’s aviation maintenance, repair and overhaul (MRO) services, and its marine manufacturing services.
 
Revenue rose 173.7% to RM223.72 million, from RM81.75 million in 1QFY16, mainly due to higher revenue from its marine manufacturing services, Destini said in a filling to Bursa Malaysia today.
 
“Destini’s rise in earnings in 1QFY17 are within expectations. The group’s performance was mainly supported by recognising profits from the fabrication of vessels, motor trollies, as well as aviation MRO services for the Ministry of Defence,” managing director Datuk Rozabil Abdul Rahman said in a separate statement.
 
Destini said the group is also recognising profits from its contract to manufacture motor trollies and road rail vehicles for Keretapi Tanah Melayu Bhd, which was awarded by the Transport Ministry last year.
 
Rozabil said FY17 will be another significant year for the group, as it will be building the largest vessel it has ever built — an 83-metre offshore patrol vessel (OPV).
 
In January, Destini accepted a letter of award for the supply, delivery, testing and commissioning of three OPVs worth RM738.9 million for the Malaysia Maritime Enforcement Agency (MMEA), through a joint venture with TH Heavy Engineering Bhd, Destini said.
 
Destini said it will also expand its MRO services to a wider range of aircraft, which are helicopters.
 
“We expect 2017 to be another challenging year. However, by keeping a healthy orderbook, focusing on core businesses and expertise and also with the support of experienced management, we are confident that Destini will stay on track to an improved performance for the financial year 2017,” said Rozabil. 
 
As at March 31, the group’s orderbook stood at RM1.3 billion.
 
“Destini will not remain complacent and will look for more opportunities to increase the group’s performance and capabilities. We will focus on strengthening our operations in all our businesses in the markets that we are operating in,” added Rozabil.
 
Shares in Destini closed up 0.5 sen or 0.71% at 71 sen today, for a market capitalisation of RM820.21 million.