Magni-Tech Industries Bhd posted a 91.88% rise in net profit for the third quarter ended Jan 31, 2024 (3QFY2024) to RM39.38 million from RM20.52 million a year earlier on higher garment sales which were slightly bolstered by forex gain.

KUALA LUMPUR (March 18): Garment and packaging product maker Magni-Tech Industries Bhd’s net profit for the third quarter ended Jan 31, 2024 (3QFY2024) rose 91.88% to RM39.38 million from RM20.52 million a year earlier as higher garment sales were slightly bolstered by a foreign exchange gain.

Revenue for the quarter increased 39.16% to RM392.19 million versus RM281.83 million previously, on the back of the higher garments sales minimally offset by lower packaging sales.

On the back of the higher earnings, the group declared a higher third single-tier interim dividend of 3.5 sen payable on April 18, versus the two sen declared for the same quarter last year.

This brought its year-to-date dividend payout to 8.5 sen per share, from 6.5 sen per share in 9MFY2023. It paid nine sen per share in dividends for the full-year of FY2023.

In the quarter, the group’s garment segment logged a 44.7% climb in revenue to RM372.15 million from RM257.19 million, while its packaging segment posted an 18.7% slip to RM20.04 million from RM24.64 million previously.

For the nine months ended Jan 31, 2024 (9MFY2024), Magni-Tech posted a net profit of RM93.89 million, 35.03% higher than the RM69.53 million logged in the same cumulative period a year ago.

Cumulative revenue stood 3.98% higher at RM1 billion compared with RM965.77 million previously. Likewise, the improved performance was thanks to its stronger garment segment while its packaging segment dragged.

Looking to the remaining quarter of the financial year ended April 30, 2024 (FY2024), Magni-Tech said the timing and depth of US interest rate cuts leading to potential market volatility and ongoing geopolitical tensions remain as the key risks on the horizon.

“However, the group remains cautiously optimistic over the business outlook for the remaining quarter of FY2024,” it added.

Shares in Magni-Tech ended one sen or 0.49% lower at RM2.03, giving the group a market capitalisation of RM880.92 million.