KUALA LUMPUR: Leon Fuat Bhd recorded a 470.4 per cent net profit gain to RM38.66 million for the third quarter (Q3) ended 30 September 2021 (FY21) compared with RM6.78 million in FY20.

Revenue increased 44.1 per cent to RM236.11 million compared with RM163.82 million in Q3 FY20.

On a segmental basis, revenue from trading of steel products increased by 65.7 per cent to RM94.81 million, while revenue from the processing of steel products increased by 32.6 per cent to RM141.22 million.

The trading segment's contribution to revenue stood at 40.2 per cent in Q3 FY21 compared with 34.9 per cent in Q3 FY20, while the processing segment's contribution to revenue stood at 59.8 per cent compared with 65.0 per cent in Q3 FY20.

For the nine months (9M) period, net profit grew 918.5 per cent to RM106.89 million compared with RM10.50 million in the same period last year.

Revenue rose 61.9 per cent to RM632.37 million compared with RM390.61 million recorded in 9M of 2020.

Executive director Calvin Ooi Shang How said generally, the company's business was not severely affected by the movement restrictions in 9M 2021, while higher overall revenue and higher gross profit margins supported its financial performance.

"However, we note that while there is a potential rebound in domestic economic activities that will lead to recovery in the coming quarter, we will manage the continuing risks from supply disruptions persistently amid a resurgence in Covid-19 infections in certain economies," he said in a statement today.

Leon Fuat is a manufacturer and trader of steel products, specialising in rolled long and flat products.

Calvin said the company is taking proactive measures to ensure business continuity and sustainability given the volatile business landscape.

"These measures include keeping vigilant on steel price movements and related foreign currencies, taking proactive measures including negotiating forward contracts, where necessary, as well as prudent inventory management while continuously enhancing the operating capabilities and efficiencies to meet customers' requirements and keeping our operating costs at a manageable level," he said.