The Electronics Manufacturing Services (EMS) provider has announced its first quarter (1QFY23) financial results for the period ended 31 October 2022.
The Group posted a revenue of RM1.29 billion as compared to RM968.0 million last year in 1QFY23. This translate to an increase of 33.7% year-on-year (YoY).
Meanwhile, VS’ profit after tax and non-controlling interest (PATNCI or net profit) soared 54.1% YoY to RM60.7 million in 1QFY23 from RM39.4 million. The top and bottom-line improvements were primarily driven by higher sales orders from existing key customers.
“We are heartened by the commendable set of results that we delivered, notwithstanding the taxing environment. Challenges are abound for the current financial year (FY23),” Managing Director of VS, Datuk S.Y. Gan said.
“Global macroeconomic issues such as rising inflation and interest rates have led to rising cost of living and in turn, affected consumer sentiment and purchasing power. At this juncture, however, our order flow from customers remains satisfactory and we are monitoring the situation closely,” he remarked.
“Operationally, we continue to exercise prudence and caution to keep our cost check in check. On a brighter note, our business development and marketing teams are able to resume face-to-face meetings with both customers and prospects to discuss potential opportunities. All in all, the Board is cautiously optimistic on the outlook of VS and opines that the financial performance of the Group for the remaining quarters to be satisfactory,” Datuk S.Y. Gan further added.
The Group’s balance sheet remained healthy with net gearing 0.19x as at end-October 2022, backed by net assets per share of RM0.60 per share and gross cash holdings of RM572.8 million.
In line with its quarterly dividend payout practice, the Board has declared a first interim dividend of 0.5 per share for the quarter under review.
