VS Industry’s 3Q net profit slips to RM51.29mil

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KUALA LUMPUR: VS Industry Bhd‘s net profit for the third quarter ended April 30, 2022, slipped 30.1% to RM51.29mil from RM73.38mil within the earlier corresponding quarter as income was impacted by labour and provide shortages.

The group reported income of RM927.59mil, which was 13.69% decrease than RM1.07bil within the year-ago quarter.

The board of administrators declared a 3rd interim dividend of 0.4 sen per share going ex on July 8, 2022, and payable on July 29, 2022.

In its efficiency assessment, VS Industry stated its Malaysian market posted a weaker efficiency due to decrease gross sales deliveries in addition to labour and provide shortages.

“The diminished profitability was in tandem with decrease income, coupled with further elements that included improve in labour and uncooked supplies prices, in addition to increased depreciation from new amenities whereas mass manufacturing for a brand new key buyer has but to obtain optimum degree, ” it stated in a bourse submitting.

Over the 9 months to April 30, VS Industry recorded a net profit of RM135.17mil on income of RM2.91bil, in contrast to a net profit of RM203.85mil and income of RM3.06bil within the earlier corresponding interval.

On outlook, managing director Datuk SY Gan stated companies, together with VS Industry, are confronted with multifaceted challenges similar to inflation, rising labour and supplies prices, labour scarcity, provide chain and logistics disruptions to identify a number of.

However, he added that the group has lately obtained a brand new batch of overseas staff, with extra to arrive within the coming months.

“The further labour power will increase fulfilment of orders from key prospects which have remained strong, together with ramping up mass manufacturing for a brand new key buyer,” he stated.

Additionally, being an exporter, the weaker RM in opposition to USD will augur nicely for the group normally.

“On stability, the prospects of the group stay intact with clearer skies forward underpinned by the sustained wholesome demand from our prospects and the gradual enchancment of the labour scarcity scenario.

“The board is cautiously optimistic on the outlook of VS and opines that the monetary efficiency of the Group for the remaining quarters to be passable,” he added.



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