KUALA LUMPUR (March 19): Eita Resources Bhd said its 60%-owned unit has won a RM47.96 million contract from Tenaga Nasional Bhd to supply a new outdoor transmission substation in Ayer Puteh, Perak.

The scope of work includes the erection, testing and commissioning of the 132kV conventional substation, as well as civil, transmission lines and remote ends relay retrofits, said Eita.

The two-year contract is effective from March 8, added the group in a stock exchange filing on Tuesday.

For its first quarter ended Dec 31, 2023, Eita’s net profit nearly quadrupled to RM7.49 million from RM1.92 million a year ago, while revenue increased 57% to RM114.62 million from RM73.02 million.

The stronger profitability was attributable to higher elevator service and repair maintenance works, coupled with improvement to the group’s manufacturing of busduct business and high voltage system division.

For the remainder of the financial year, the group expects to continue facing challenges such as material and labour cost pressure on operations.

In addition, the weakening of the ringgit against other currencies may continue to impact the group’s financial performance, said Eita.

“The group will navigate through this challenging period with the current order book and ongoing projects in hand, as well as continue to adopt a prudent approach for the group's business operations,” it said.

Shares of Eita closed 1.5 sen or 1.6% higher at 96 sen on Tuesday, giving it a market capitalisation of RM289.74 million.

Eita’s share price has embarked on a steep climb since late February, around the time when the group released its first quarter results.

The counter has appreciated by 39% since the beginning of February.