Inari Amerton Bhd’s net profit fell 20% to RM84.98 million in the first quarter ended Sept 30, 2023 (1QFY2024) from RM106.25 million in the corresponding quarter a year ago, after a marginal increase in revenue was offset by less favourable exchange rates and higher costs.

KUALA LUMPUR (Nov 22): Inari Amerton Bhd’s net profit fell 20% to RM84.98 million or 2.27 sen per share in the first quarter ended Sept 30, 2023 (1QFY2024) from RM106.25 million or 2.86 per share in the corresponding quarter a year ago, after a marginal increase in revenue was offset by less favourable exchange rates and higher costs.

The higher costs were attributable to an increase in electricity rates and losses arising from glitches in electricity supply experienced during the quarter, its bourse filing showed. Quarterly revenue rose 2% to RM383.93 million from RM377 million a year ago, on higher contribution from its radio frequency (RF) business.

But compared with the immediate preceding quarter ended June 30, the group's net profit is up 28% from RM66.31 million, as revenue climbed 29% from RM298.75 million, as it registered higher topline in all business segments — especially its RF segment.

The group declared a first interim dividend of 2.2 sen per share, payable on Jan 5, 2024.

Inari noted that US tech research and consulting firm Gartner had expected global semiconductor revenue to decline by 10.9% in 2023, while the International Data Corp expected worldwide smartphone shipments to drop 4.7% in the same year, before seeing growths in 2024.

"Thus far, the group has performed better than industry forecasts. Looking ahead, the group continues to be focused on strategies to improve our production capacity and utilisation, strengthen our operational efficiencies to grow revenue consistent with, or better than, industry forecasts in 2024," Inari said.

Inari’s shares closed half sen or 1.6% lower at RM3 on Wednesday, valuing the company at RM11.2 billion. Year to date, it has gained 38 sen or 14.5%.