Leon Fuat Berhad saw its profits rise substantialy to 470% to RM38.66 million for the quarter against RM6.78 million it registered in 2020. The manufacturer and trader of steel products, specialising in rolled long and flat products has been largely insulated by the economic uncertaintly faced by most of the sectors during the pandemic.
For the said quarter the company registered a 44.1% increase in revenue to RM236.11 million compared with RM163.82 million in Q3FY2020 while profit before tax recorded a 447.0% gain to RM49.14 million compared with RM8.98 million in Q3FY2020.
Breaking down its revenue segment, revenue from trading of steel products increased by 65.7% to RM94.81 million while revenue from the processing of steel products increased by 32.6% to RM141.22 million. The trading segment’s contribution to revenue stood at 40.2% in Q3FY2021 compared with 34.9% in Q3FY2020 while the processing segment’s contribution to revenue stood at 59.8% compared with 65.0% in Q3FY2020.
For the nine months ended PAT grew 918.5% to RM106.89 million compared with RM10.50 million registered in the corresponding period of the preceding financial year. PBT increased by 815.2% to RM134.24 million compared with RM14.67 million recorded in 9M2020 while revenue rose 61.9% to RM632.37 million compared with RM390.61 million recorded in 9M2020.
Executive Directoe Calvin Ooi Shang How said, “Generally, our business was not severely affected by the movement restrictions while higher overall revenue together with higher gross profit margins supported our financial performance.”
Lookign ahead, the group will taking proactive measures to ensure business continuity and sustainability given the volatile business landscape. These measures include keeping vigilant on steel price movements and related foreign currencies, taking proactive measures including negotiating forward contracts.