Aneka Jaringan, a renowned piling specialist, faced a tough fiscal environment since the fourth quarter of FY21, exacerbated by the Covid-19 pandemic. With construction projects coming to a screeching halt and raw material prices skyrocketing, the company's financials were in disarray.

Green Shoots, A Signs of Recovery

However, a ray of hope emerged in Aneka Jaringan's financial performance starting from the second quarter of FY23. Notably, the company finally moved into the black during the most recent quarter—Q4 of FY23.

A Deep Dive into Financial Metrics

For the quarter under review, the company posted a revenue of RM51.5 million and a gross profit of RM7.6 million. This represents a remarkable 158.52% improvement compared to the same quarter in the previous fiscal year. On the net income front, the company generated a profit after tax of RM0.3 million, a marked turnaround from a staggering loss of RM10.4 million during the corresponding quarter last year.

What is particularly noteworthy is that these numbers were achieved despite an impairment charge of RM2.46 million, stemming from unrecognised contract assets due to progress billing standards and a long overdue trade receivables impairment. In layman's terms, the results could have been even more encouraging without these one-off items.

A Steady Ascent on Quarterly Comparison

When compared to the immediate preceding quarters, the fourth quarter of FY23 undoubtedly stands out as Aneka's best-performing period. The company's revenue surged by 24.90%, while its gross profit leapt by an astonishing 402.10%. This bounce-back performance also led the company to reverse its loss of RM2.9 million in Q3 of FY23.

Bullish Cash Flow and Order Book

From a cash flow standpoint, Aneka Jaringan generated RM22.1 million in FY23—a significant achievement given its history of cash outflows. The company currently boasts an order book valued at RM295.8 million. Not to be overlooked, Aneka has also started to secure orders for renewable energy projects in Indonesia. Although exact figures remain undisclosed, the trajectory is clearly upward.

Last Friday, the company's share price experienced a 5.7% boost, increasing by 1 cent. This prompts an intriguing question: Are we poised to witness a sustained uptrend for Aneka Jaringan?