KUALA LUMPUR (JUNE 27): V S Industry Bhd's net profit for the third quarter ended 30 April 2012 (3Q12) rose 24.4% to RM10.7 million from RM8.6 million a year earlier.
The company said on Wednesday revenue rose 9.5% to RM286.89 million from RM262.1 million in 2011. Earnings per share was 5.88 sen compared to 4.72 sen. The company declared a third interim single-tier dividend of two sen per share.
V S Industry’s managing director Gan Sem Yam in a statement on Wednesday said that although the ongoing economic crisis was widely anticipated to dampen end-user demand for consumer electronics, the company’s production plants in Malaysia and Indonesia continued to witness growing sales orders in 3Q12.
He said that this benefited the group in two ways. “Firstly, we have successfully diversified our clientele to include growing consumer electronics brands from Europe, Japan and the US. Secondly, we have staked our reputation as a formidable manufacturing partner to our global customers; this strengthens our track record of delivering high-quality and value- added services to our clientele,” he said.
Gan said the group’s Malaysian plants generated steadily growing revenues at a rate of 8.5% year-on-year to RM256.3 million from RM236.3 million previously.
Simultaneously, Indonesian operations posted a higher revenue growth of 33.9% to RM27.2 million in 3Q12 versus RM20.3 million in the previous corresponding quarter, he said.
The group’s 3Q12 profitability was further enhanced by reduced share of loss of associates amounting to RM1.9 million compared to RM5.0 million in 3Q11, as well as lower finance costs which declined 13.1% to RM1.5 million, the statement revealed.
Group revenue rose 9.2% for the nine month period ended 30 April 2012 to RM835.1 million from RM765.0 million in the previous corresponding period.
At the same time, group net profit declined to RM28.9 million from RM31.8 million previously, attributed to increased competition in the electronics manufacturing services (EMS) sector. However, Gan said the company remained optimistic in terms of its growth prospects.