Dagang NeXchange Berhad (“DNeX”) has announced its results for the first quarter ended 31 March 2020 (“1Q FY2020”) where the company has managed to maintain profitability amidst challenging business environment.
In 1Q FY2020, DNeX recorded RM63.6 million in revenue from RM68.9 million in the first quarter ended 31 March 2019 (“1Q FY2019”) was mainly due to completion of one-off submarine cable installation and repair contract in Indonesia in 1Q 2019.
In the current reporting quarter, the IT and e-services division contributed 78 per cent of the Group’s revenue while the rest 22 per cent was contributed by its Energy division.
The Group’s Energy division on the other hand showed 23 per cent increase in revenue in 1Q 2020 as compared to 1Q 2019 contributed by Trading & Services which saw an improvement in the orderbook.
DNeX ‘s Profit After Tax (“PAT”) stood at RM5.9 million in 1Q FY2020 against RM13.9 million in the same quarter last year, affected by lower share of the results of an associate, lower recognition of other income, and completion of submarine cable installation and repair contract in Indonesia in 1Q 2019. This was partly mitigated by cost savings of RM1.5 million in the current reporting quarter.
“The company has managed to maintain its profitability amidst challenging business environment resulting from the Covid-19 pandemic and subsequent restricted mobility. The satisfactory results demonstrate our ability to withstand these challenges,” said Samsul Husin, executive deputy chairman of DNeX.
“We believe the impact by the pandemic to the Group is manageable as most of our projects, especially the Government projects, are ongoing and these will carry us through 2020. Selected Government projects continue to operate as usual during the Movement Control Order as part of Essential Services albeit with extra precautions for workers and travel,” he added.
“Switching to full digitalisation or at least increasing the level of digitalisation is now an absolute necessity for businesses and organisations. Hence, we believe global spending in IT and digital technology will not slowdown but potentially increase given the current operating landscape, which augurs well for technology solution providers such as DNeX. With this in mind, we are aggressively pursuing opportunities to help narrow the digitalisation gaps across all sectors,” he said.
“Our Dagang Net Digital Platform (“DNDP”), a unified platform to enable collaboration on content, aggregation, repository, e-commerce and e-fulfillment, can be the answer to digitalisation either in trade processes or digitalisation of services in both the public and private sectors,” he added