KUALA LUMPUR (Dec 22): Solid Automotive Bhd's net profit for its second quarter ended Oct 31, 2022 (2QFY2023) dropped 3.29% to RM1.29 million from RM1.34 million a year earlier, primarily due to salary increments, performance incentives, currency volatility and higher tax expenses' provision.

Quarterly revenue rose 17.36% to RM88.93 million, from RM75.78 million in 2QFY2022 when Malaysia moved to the National Recovery Plan, the group said in a Bursa Malaysia filing.

Revenue from the group's automotive service, electrical, spare and related parts segment accounted for 84.3% of the total revenue, while the automotive engine and mechanical parts segment made up 9.3%.

Solid Automotive declared a first interim dividend of 0.3 sen per share, to be paid on Jan 30 with Jan 10 as the ex-date.

For the cumulative six months ended Oct 31, 2022, net profit increased to RM5.66 million from RM2.35 million in the preceding year's corresponding period, on higher revenue contributions as revenue increased 35% to RM180.91 million from RM134.22.

"With the group's agile business strategies, kaizen (continuous improvement) mindset and prudent countermeasures, we shall be able to seize the opportunities while mitigating the risk impacts.

"We shall actively seek opportunities to expand vertically and/or horizontally and strive to increase stakeholders" values," said the group.

Solid Automotive's share price closed unchanged at 21.5 sen on Thursday (Dec 22), giving a market capitalisation of RM109.13 million.