KUALA LUMPUR (March 16): Superlon Holdings Bhd’s net profit for the third quarter ended Jan 31, 2021 (3QFY21) leapt 63.2% to RM3.52 million, from RM2.15 million a year ago, due to higher gross profit margin, lower selling and distribution expenses.

The thermal insulation materials manufacturer’s quarterly revenue, however, fell 13.5% to RM22.86 million, from RM26.44 million a year ago, due to reduction in revenue contributed from its manufacturing division, its filing to Bursa Malaysia showed.

The group declared a third interim dividend of 1.25 sen for the financial year ending April 30, 2021 (FY21), which will be paid on April 21.

The group said the contraction of its top line was mitigated by improved gross profit margin, lower selling and distribution expenses offset by higher net exchange loss.

Notwithstanding a lower revenue for 3QFY21, it said, the group’s profit after taxation was RM3.5 million mainly due to lower effective tax rate for its Vietnam subsidiary as well as reversal of over provision of taxation for the prior year for a Malaysian subsidiary.

On a quarter-on-quarter basis, the group’s net profit increased by 30% from RM2.7 million in 2QFY21, while its revenue climbed 1% from RM22.63 million.

For the nine months ended Jan 31, 2021, the group’s net profit grew 37.2% to RM10.02 million, from RM7.3 million a year earlier. Its revenue for the period, however, slid 12% to RM72.89 million, from RM82.83 million a year earlier

As announcements of successful Covid-19 vaccine trials and vaccination rollout plans have provided hope that the global economic activities and growth will gradually resume, the board said it is cautiously optimistic of the performance of the group for FY21.

“However, the recent resurgence of Covid-19 cases locally and globally poses a downside risk should the government impose further restrictions or conditions on the country which may affect our company,” it said.

Superlon closed unchanged at 87 sen today, valuing the group at RM138.09 million.