KESM Q3 net profit up 40%

PETALING JAYA: KESM Industries Bhd’s net profit for the third quarter ended April 30, 2017 rose 40.02% to RM10.60 million from RM7.57 million a year ago due to higher revenue during the quarter.

In a filing with Bursa Malaysia yesterday, the group said its revenue for the quarter rose 20.10% to RM85.00 million from RM70.77 million a year ago due to higher demand for burn-in and test services.

Employee benefits expense for the quarter rose by RM2.6 million or 11% mainly due to adjustments of wage rates and higher staff compensation to support the increased revenue.

Depreciation was also higher by RM4.1 million or 31% as additional machinery and test equipment were installed during the period.

Other expenses were higher by RM4 million or 24% mainly due to higher expenses on repair and maintenance by RM2.3 million and management fees of RM1.4 million.

For the nine months ended April 30, 2017, net profit rose 35.13% to RM30.59 million from RM22.64 million a year ago while revenue rose 17.53% to RM248.22 million from RM211.21 million a year ago.

The group expects a sustainable performance moving forward, based on positive developments in the world-wide semiconductor revenue and global economy.