Inari Q2 net profit up two-fold to Rm90.1mil

KUALA LUMPUR: Despite higher foreign exchange losses, Inari Amertron Bhd’s (Inari) net profit jumped more than two-fold to Rm90.09mil for the second quarter ended Dec 31 from Rm37.48mil a year ago driven by higher revenue in the radio frequency (RF) business, and recognition of deferred tax assets.

In a filing with Bursa Malaysia yesterday, the group said revenue also climbed about 42% to Rm376.83mil in the quarter compared with Rm265.43mil in the corresponding period a year ago due to increase sales volume generated by RF business.

Meanwhile, the group’s earnings per share for the quarter rose to 2.74 sen per share compared with 1.18 sen per share a year ago.

The board of directors also proposed dividend of 2.50 sen per share for the quarter.

“The entitlement date and payment date are on March 18, 2021 and April 8, 2021 respectively,” the group said.

Moving forward, Inari is positive about the earnings for the financial year ending June 30, 2021 on the back of positive demand for 5G smartphones in the upcoming quarters.

“We will continue to improve our production capacity tapping on the strong growth momentum in 5G mobile phones, and to add automation processes to generate higher operating margins and revenue.

“The semiconductor market is not negatively impacted by the Covid-19 pandemic. Instead the pandemic has influenced consumer behaviour to shift towards higher purchases of technology devices such as smartphones while narrowing spending for other essentials,” it noted.

Inari has also taken steps to secure its requirements for raw materials supplies ahead due to the ongoing shortages in some sectors of the semi conductor market.