KUALA LUMPUR (May 31): Electronics company Industronics Bhd's net loss for the first quarter ended March 31, 2022 (1QFY22) widened 23.16% to RM1.05 million from RM855,000 a year ago on overhead costs and loan interest incurred.

In a bourse filing on Tuesday (May 31), Industronics stated that revenue however increased by 74.9% to RM8.02 million from RM4.6 million a year prior, while loss per share improved to 26 sen from 64 sen previously.

Revenue was mainly contributed from the trading and services operations segment amounting to RM6.02 million, largely from the trading of precision instruments and income from cloud service.

Hong Kong subsidiary, Bluemount Financial Group, contributed a profit of RM260,000 to the group from its trading of watches and provision of cloud service.

“However, the profit generated has been [offset] against the losses from operations in Malaysia which were mainly due to overhead costs and interest on loan incurred in this 1Q22,” Industronics said.

In terms of prospects for 2022, the company said it will continue to focus its efforts in developing new value-adding solutions to support existing customers and promoting business continuity and sustainability.

“The group recognises the intensely complicated environment in which it is operating today and is taking every step possible to further develop and strengthen the group's performance.

“While it is difficult to estimate the extent and severity of the Covid-19 pandemic's impact to the economy and to the group's financial position, the management has taken proactive steps to solidify the group's financial standing and mitigate any adverse consequences.

“These steps include monitoring all costing, reducing workforce size and instituting initiatives to encourage savings in business operations. The group continues to carefully monitor this crisis and will take additional actions as needed,” it said.

At noon break, Industronics’ share price was unchanged at nine sen with a market capitalisation of about RM37.13 million.