ES Ceramics profits fall 39% in Q4

PETALING JAYA: ES Ceramics Technology Bhd's net profit fell by 39.27% for the fourth quarter ended May 31, to RM1.27 million from RM2.09 million due to higher operating costs, spurred by the increase in energy and raw material cost and more competitive pricing.
Revenue edged higher by 6.29% to RM8.34 million from RM7.85 million.
In a filing with Bursa Malaysia, its board said that the challenges ahead lies in the escalating production cost due to increase in various essential cost components and shortage of workers and fluctuations in the exchange rate, which may impact its operations and profitability.
Nonetheless, the management is taking measures to improve operational efficiencies as well as monitoring and controlling its operational expenses.
"The management shall continue to explore opportunities to enhance and improve the performance of the group and is confident barring any unforeseen circumstances the group expects to achieve a favourable performance in the coming year," the board said.
Its net profit for the financial year under review stood at RM6.32 million, which is 12.89% lower than the previous year's RM7.26 million.
The group recorded a 11.06% increase in its revenue for the current financial year to RM33.26 million from RM29.95 million.
The company's shares closed 1.24% higher at 41sen with some 884,000 shares changing hands.