Sapura Industrial's net profit falls 26% on deferred tax provision

TheEdge Wed, Dec 06, 2023 08:50pm - 6 months View Original

KUALA LUMPUR (Dec 6): Sapura Industrial Bhd's net profit fell 25.68% to RM1.89 million in the third quarter ending Oct 31, 2023 (3QFY2024), compared to RM2.55 million a year ago, mainly due to the provision for deferred tax liabilities.

Earnings per share dropped to 2.6 sen from 2.5 sen in 3QFY2023, according to the automotive component manufacturer's bourse filing on Wednesday.

Quarterly revenue rose 9.12% to RM77.08 million from RM70.64 million in the previous year’s corresponding period, in line with improvement in volume due to the delivery of carried-over bookings made during the sales tax exemption period.

For the nine months ended Oct 31 (9MFY2024), the group's net profit fell 22.58% to RM4.8 million from RM6.2 million in the previous year's corresponding period. This was mainly due to transition costs incurred pending the completion of the group's relocation of its coil spring plant from Port Klang to Bangi.

Revenue for 9MFY2024 rose 17.48% to RM218 million from RM186 million a year ago, again in line with volume improvement as well as new models launched.

On prospects, the group expects volume to remain consistent throughout the year, with the Malaysian Automotive Association (MAA) revising the forecasted Total Industry Volume (TIV) for 2023 from 650,000 to 725,000 vehicles, up 0.6% from 2022's record-breaking achievement of 720,658 units.

"This expected TIV revision is mainly due to new and affordable model launches, a stable economic outlook, and sustainable market performance," it said.

The group will further strengthen operational efficiencies, improve productivity, and optimise its resources to meet customers' demand.

Sapura Industrial’s shares settled unchanged at 88 sen on Wednesday, giving the group a market capitalisation of RM63.68 million.

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