Inari Amertron Bhd reported a 71.6% drop in net profit of RM24.12 million for the first quarter ended Sept 30, 2024 (1QFY2025) from RM84.98 million in 1QFY2024, dragged by a foreign exchange loss of RM53.3 million, following a steep drop in the US dollar against the ringgit.

KUALA LUMPUR (Nov 26): Inari Amertron Bhd (KL:INARI) reported a 71.6% drop in net profit for the July-September period, dragged by a foreign exchange (forex) loss of RM53.3 million, following a steep drop in the US dollar against the ringgit.

It posted a net profit of RM24.12 million for the first quarter ended Sept 30, 2024 (1QFY2025) — its lowest quarterly earnings in nearly nine years — from RM84.98 million in 1QFY2024. Revenue was a marginal 1.1% higher at RM388.01 million versus RM383.93 million a year ago, due to a higher loading volume in its radio frequency (RF) business, its bourse filing on Wednesday showed.

The group declared a first interim dividend of one sen per share — down from the 2.2 sen it declared in the same quarter a year ago — to be paid to its shareholders on Dec 26.

Inari expects to report a significant forex recovery in the coming quarter’s results following the rebound in the US dollar against the ringgit.

And despite ongoing geopolitical uncertainties and the anticipated escalation of trade tensions, the group remains cautiously optimistic about FY2025 as it expects demand for advanced semiconductor packaging to persist.

“Our focus remains on driving innovation in this area while expanding our customer base, enhancing production capacity and utilisation, and strengthening operational efficiencies. These efforts position the group to sustain revenue growth and navigate the evolving challenges of the industry,” it said.

Inari’s cash and cash equivalents stood at RM2.1 billion as at end-September 2024, with no outstanding borrowings.

After hitting a two-and-half-year high of RM4 in July this year, Inari’s share price has erased nearly all its year-to-date gains. The stock dipped two sen or 0.68% to close at RM2.97 on Wednesday, bringing the group a market capitalisation of RM11.25 billion. The stock is currently valued at a price-earnings ratio of 47 times.