KUALA LUMPUR (June 15): VS Industry Bhd's net profit fell 47.8% to RM26.8 million for its third quarter ended April 30, 2023 (3QFY2023), from RM51.3 million a year earlier due to higher electricity, labour and financing costs, as well as net foreign exchange loss.

Quarterly revenue for the period, however, rose 7.5% to RM996.8 million, compared to RM927.6 million a year ago, driven by higher sales orders from key customers, the electronics manufacturing services provider said in a Bursa Malaysia filing on Thursday (June 15).

VS Industry has declared a third interim dividend of 0.4 sen per share, which will be paid on July 28.

For the first nine months of FY2023, the group's net profit dropped 12.8% to RM117.8 million from RM135.2 million, while revenue increased 18.1% to RM3.44 billion from RM2.9 billion a year earlier.

Its Malaysian business operation posted an increase of 3.6% in revenue for the current quarter and 33.6% for cumulative quarters, owing to higher sales orders from key customers.

Nonetheless, its China segment continued to sustain losses given the highly challenging environment in the country.

“In the absence of large orders, the low revenue base was insufficient to cover fixed costs,” the company said.

Its Singaporean business operation, which acts as the marketing arm for its local operations, recorded a profit before tax for the current quarter, in line with higher sales orders from a key customer.

Meanwhile, its Indonesian business operation recorded lower revenue of RM59.1 million and a loss before tax of RM1.4 million, due to lower sales orders from customers arising from the Hari Raya festive period.

Nonetheless, on its outlook, the group expects a potential uptick in demand for the quarter ahead.

“At the same time, our experienced management, proven track record and solid balance sheet provide strong support in overcoming business challenges that may arise,” the company added.

VS Industry’s share price gained half sen or 0.6% to 84.5 sen, valuing the company at RM3.26 billion.