VSTECS Achieves 30.2% Revenue Growth in FY2021

VSTECS Berhad has released its fourth quarter financial results for the three (3) months ended 31 December 2021 (4QFY2021).

The Information & Communications Technology (ICT) distributor’s revenue and profit after tax (“PAT”) for FY2021 increased by 30.2% and 49.5% to RM2.63 billion and RM55.0 million as compared to RM2.02 billion and RM36.8 million recorded in FY2020, respectively.

In 4Q FY2021, VSTECS registered a revenue of RM763.4 million which was 15.7% above revenue of RM659.6 million achieved in the corresponding period of the preceding year (4QFY2020). There was an increase in revenue contribution across all business segments.

The ICT Distribution segment posted a 11.9% increase in revenue to RM432.1 million driven by continuous digitalisation of daily activities and social interaction. The Enterprise Systems segment recorded a revenue of RM297.2 million, an increase of 19.0% while the Group’s ICT Services segment grew substantially by 42.9% to RM34.1 million. Profit after tax increased by 53.9% to RM19.8 million as compared to RM12.9 million 4Q FY2020.

“We delivered outstanding performance this quarter driven by strong growth across all three business segments as consumers and businesses accelerated their IT spending in the fourth quarter. Our ICT Distribution segment distributed new consumer products in 4Q FY2021. With the re-opening of schools and offices nationwide, supply shortages have abated as demand for notebooks and tablets normalised. We shall strive to continue growing the ICT Distribution segment by gaining more market share and serving new market segments,” JH Soong, Chief Executive Officer of VSTECS said.

“The Enterprise Systems segment continues to be the pillar for future growth as demand for cloud computing and cybersecurity will surge from the pandemic aftermath and we are well positioned to benefit from such opportunities. Both the public sector and commercial enterprises are pushing for digital transformation to remain relevant and for better resiliency and business continuity. We are currently facing a temporary setback as global chip shortages delay our enterprise project deployment and we are working with our suppliers to resolve this. Despite such delays, we are seeing continued growth in the enterprise segment,” he added.

“The ICT Services segment is another bright spot for us. Aside from traditional channels, we are on the verge of launching several new and exciting channels to enhance our distribution strength and to drive growth momentum. We will be unveiling these new initiatives in the near future to enhance our reach as one of the leading ICT distributors in Malaysia”, he concluded.

Previous articleInvestors On Sidelines As Malaysia Resolves 5G Issue
Next articleKHIND Posts RM579.25 Million in Revenue for the FY2021

LEAVE A REPLY

Please enter your comment!
Please enter your name here