A-Rank’s Q2 profit up on better margins

PETALING JAYA: A-Rank Bhd’s net profit for the second quarter ended Jan 31, 2017 rose 10.43% to RM3.78 million from RM3.42 million a year ago, in line with higher pre-tax profit achieved due to better margins.

In a filing with Bursa Malaysia yesterday, the group said its pre-tax profit for the quarter rose 20.05% to RM4.88 million from RM4.06 million a year ago.

Revenue for the quarter fell 10.53% to RM114.59 million from RM128.08 million a year ago due to lower business volume although average selling prices were higher as a result of the increase in raw material costs.

Its revenue from Southeast Asia, excluding Malaysia, rose 15.5% during the quarter to RM28.23 million from RM24.44 million a year ago.

However, revenue from Malaysia fell 11.09% to RM76.09 million from RM85.58 million a year ago while revenue from others (countries in Africa, Europe and South Asia) fell 43.14% to RM10.27 million from RM18.06 million a year ago.

For the six months ended Jan 31, 2017, net profit rose 17.99% to RM8.44 million from RM7.15 million a year ago while revenue fell 6.63% to RM238.36 million from RM255.30 million a year ago.

A-Rank and its subsidiaries are principally engaged in investment holding, manufacturing and marketing of aluminium billets.

Its three reportable segments are Malaysia, Southeast Asia and other operating segments being countries in Africa, Europe and South Asia.

Moving forward, the group is optimistic about remaining profitable for the rest of the financial year ending July 31, 2017 despite the challenging external environment.

“While the external environment may continue to remain challenging, the Malaysian economy will experience sustained growth with the primary driver being domestic demand,” it said.