PETALING JAYA: Magni-Tech Industries Bhd posted a 28.7% rise in net profit to RM29.9 million for its second quarter ended Oct 31, 2019, from RM23.2 million in the previous corresponding quarter, contributed mostly by its garment segment
In its Bursa filing, the group said profit for the garment segment had expanded 27.9%, mainly due to higher revenue and lower operating costs incurred driven by the improvement in operational efficiency, higher forex gain and higher investment related income.
However, for the group’s packaging segment, profit dropped 13.4% mainly due to lower sales orders received.
Revenue was also 17.8% higher at RM301.3 million, from RM255.8 million.
For the six-month period, Magni-Tech’s net profit rose 33.5% to RM60.4 million, from RM45.2 million, while revenue was 18.7% higher at RM628.7 million, from RM529.5 million.
Looking ahead, the group said the manufacturing and sale of garment will still be the group’s major revenue contributor.
“The group’s operating environment for the remaining quarters of FY20 is expected to be challenging amid global economic uncertainties. Nevertheless, both the garment and packaging businesses are expected to remain profitable during the said period,” it said.
