VSTECS Bhd (VSTECS), a leading Information & Communications Technology (ICT) distributor, saw a 50.1 per cent and 63.8 per cent increase in group revenue and profit after tax (PAT) to RM1.23 billion and RM22.6 million for the first half of the financial year 2021 (FY21) compared to RM821.5 million and RM13.8 million recorded in 1HFY20, respectively.
In 2QFY2021, VSTECS registered revenue of RM563.9 million which was 25.6% above revenue of RM448.8 million achieved in the corresponding period of the preceding year (2QFY20).
The increase in revenue was from both the ICT Distribution and Enterprise Systems segments. The ICT Distribution segment saw a 22.3% increase in revenue driven by continuously strong consumer buying trends.
The Enterprise Systems segment posted a revenue increase of 33.8% as businesses ramp-up on digitization efforts. Profit after tax increased by 40.8% to RM9.9 million as compared to RM7.0 million 2QFY20.
“Our results were commendable despite lockdown restrictions which caused a temporary closure of retailers’ physical stores from mid-May up to July 2021. We view this as a minor setback for our ICT Distribution segment and with the progress of the national vaccination rate, we are optimistic of improved economic sentiments. With this, we expect an increase in buying momentum from pent-up demand during the lockdown period,” CEO Soong Jan Hsung says.
He says the company is confident that the Enterprise Systems segment will continue to drive growth moving forward.
He also says business challenges because of the the pandemic have hastened the adoption of digitalization and organizations have adapted accordingly to the new normal.
This has proven to be an opportunity for the cloud market, where a surge of cloud services adoption was seen across diverse industries to enable a seamless online workforce and business continuity.