VS Industry’s Q2 profit weighed down by overseas performance

KUALA LUMPUR: VS Industry Bhd posted a 14 per cent drop in net profit year-on-year to RM37.94 million for the second quarter ended Jan 31, 2019, weighed down by the lower performance of its overseas operations.

In a filing with Bursa Malaysia yesterday,thecompanysaidrevenue also declined to RM982.65 million from RM1.12 billion previously.

The integrated electronics manufacturing services provider said operations in China swung to a pre-tax loss of RM3.69 million from a pre-tax profit of RM20.28 million a year earlier, while pre-tax profit in Indonesia weakened to RM318,000 versus RM1.43 million previously.

VS Industry attributed the weak China performance to lower sales orders completed.

“By comparison, there was a large sales order completed for a key customer in the preceding year’s corresponding quarter, which contributed to the much higher profitability then (in China) ,” it said.

The Malaysian operations, however, improved its pre-tax profit to RM51.74 million during the quarter under review from RM45.90 million previously.

Meanwhile,thecompanydeclared a second interim dividend of one sen per ordinary share, amounting to about RM18.1 million to be paid on April 30.

Prospects and profitability in the second half of the current financial year ending July 31, 2019, were expected to be lower than the first half due to the softening in orders from certain key customers. — Bernama