ELK-Desa Resources 1Q net profit more than doubles to RM4.97m

TheEdge Thu, Aug 19, 2021 03:03pm - 2 years View Original


KUALA LUMPUR (Aug 19): ELK-Desa Resources Bhd's net profit for the first quarter ended June 30, 2021 (1QFY22) more than doubled to RM4.97 million from RM2.3 million a year ago, driven by higher contribution from the hire purchase segment.

The non-bank lender said in a bourse filing that its quarterly revenue grew 3.19% to RM31.37 million, from RM30.4 million a year ago due to contribution from the furniture segment.

Earnings per share rose to 1.67 sen from 0.77 sen a year ago.

According to the firm, the profit growth was due to the significantly higher contribution from the hire purchase segment for this quarter against the corresponding quarter a year ago when its operations were impacted by the first Movement Control Order (MCO) in March 2020.

The group did not declare any dividend for the latest quarter.

The group's executive director and chief financial officer Teoh Seng Hee said in a statement that the ongoing Covid-19 crisis that resulted in the imposition of the MCO in the Klang Valley has caused disruptions to the group's business and operations.

"The MCO is expected to impact our performance in the immediate or short term as we are not allowed to operate," he said.

While the demand for hire purchase solutions may still be strong as Malaysia's overall economic fundamentals remain resilient, he said the prolonged MCO may eventually hamper the ability of the group's customers to fulfil their loan obligations.

Moving forward, he said ELK-Desa is maintaining its cautious stance to protect the quality of its assets while ensuring that its hire purchase receivables do not decline any further.

The group will also remain vigilant in credit risk management while continuing to improve operational efficiencies and optimise operating cost, he added.

At noon break, ELK-Desa was unchanged at RM1.34, valuing the group at RM395.76 million.

The content is a snapshot from Publisher. Refer to the original content for accurate info. Contact us for any changes.






Related Stocks

ELKDESA 1.240

Comments

Login to comment.