Lower margin drags Greatech Technology’s 1Q net profit down 38%

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KUALA LUMPUR: Greatech Technology Bhd’s net profit fell 38 per cent to RM28.93 million within the first quarter (Q1) ended March 31, 2022, from RM46.66 million a yr earlier on decrease gross profit (GP) margin.

The automation options supplier stated its income, nonetheless, rose 7.4 per cent year-on-year (y-o-y) to RM102.16 million from RM95.14 million beforehand.

“The group recorded a decrease GP and GP margin of RM35.21 million and 34.47 per cent, respectively, in comparison with RM49.38 million and 51.90 per cent, respectively, within the prior-year corresponding quarter,” it stated in a submitting with Bursa Malaysia at the moment.

Greatech stated the margin was primarily impacted by increased challenge expenditures as the brand new tasks secured had been within the fabrication and meeting stage and a rise in subcontract expenses to make sure well timed supply of tasks.

The firm additionally famous that in final yr’s corresponding quarter, it benefited from beneficial GP margin combine realised from set up and commissioning income.

On the improved whole income, it stated income from the only automated tools (SAE) in addition to provision of components and companies (PSS) segments grew by RM11.32 million and RM0.68 million y-o-y, respectively.

“The improve in income for each SAE and PSS was primarily from the income generated in electrical car power storage, pushed by a number of orders secured within the third quarter of 2021 for invoicing within the early of 2022 and elevated gross sales of components and companies.

“This was offset by a RM4.99 million lower in income generated from manufacturing line programs as a result of lengthening world provide chain which negatively impacted the cycle time of the tasks,” it stated.

On its prospects, Greatech stated the supply-chain constraint would proceed to place strain on the industries.

“Despite the geopolitical tensions, persistent COVID-19 pandemic with renewed lockdowns in Shanghai, China, world provide chain constraint and more and more inflationary surroundings, the demand for environmental and sustainability-related options have continued to learn positively from the rise in investments pushed by technological modifications within the e-mobility and power business,” it stated.

Greatech stated the group was working carefully with its suppliers to deal with the challenges and remained targeted on executing its technique for long-term worthwhile development.

As of May 9, 2022, the group’s order ebook stood at RM467 million, which it anticipated would final till the primary half of 2023. – Bernama



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