Weida Q3 earnings double

PETALING JAYA: Weida (M) Bhd’s net profit for the third quarter ended Dec 31, 2017 doubled to RM8.61 million from RM4.30 million a year ago mainly due to higher revenue contribution with lower overheads incurred from all segments, except for property development segment.
Revenue also jumped 10% to RM66.45 million compared with RM60.40 million in the previous year’s corresponding quarter.
Moving forward, the directors will ensure continuous efforts to implement measures to improve operating efficiency in achieving sustainable results for the group for the financial year ending March 31, 2018 on the strength of the diversified base of the group which has helped to offset the adverse impacts to the group.
However, the group’s cost of operation will be affected by the recently raised overnight policy rate, which increased Malaysian commercial lending rates. The strengthening of US dollar against the ringgit will also affect its raw material cost.
For the nine months period, net profit fell 11% to RM17.88 million from RM20.01 million a year ago, while revenue decreased 23% to RM183.72 million compared with RM239.92 million in the previous year’s corresponding period mainly due to lower contribution from both works segment and property development segment as the projects were at tail end of completion but the impact has softened by higher revenue contributed from manufacturing segment.
Despite lower revenue, the group’s profit margin improved due to contribution from both manufacturing and works segments for the current financial period.