KEDAH: Cable and wire manufacturer Southern Cable Group Berhad, made a strong start to the year with RM5.1 million net profit in the first quarter ended March 31, 2023 (1Q23), nearly doubling from RM2.6 million in the previous corresponding quarter on better product mix, improved efficiency, and adjusted selling prices to reflect latest raw material prices.
1Q23 group revenue rose 30.1% to RM240.9 million, versus RM185.1 million previously, driven by increased sales volume from various sectors such as power distribution and transmission, infrastructure, and others.
The higher sales volume in 1Q23 was also supported by increased production efficiency. The Group on-boarded additional workforce in the fourth quarter of 2022, which boosted cable and wire capacity by 15% to 38,780 kilometers per annum.
Southern Cable Group Berhad managing director Tung Eng Hai said: “With our enlarged capacity, Southern Cable is poised to capture the growing demand for cables and wires from various sectors. This readiness allows us to accommodate a larger volume of orders. Furthermore, our recent wins of more than RM120 million year-to-date from Tenaga Nasional Berhad indicates the return of the infrastructure rebuilding phase. This stance by customers, together with our larger and more efficient capacity, will contribute towards our continued growth.”
The Group has RM692.7 million current orders in hand to be fulfilled until 2024. Major orders include power cable and conductor supply contracts from Tenaga Nasional Berhad and Sarawak Energy Berhad, as well as other orders from EPCC (Engineering, procurement, construction and commissioning) contractors, and resellers.
