VSTECS Berhad released its second quarter financial results for the three months with revenue declining by 14.0% to RM608.8 million but net profit grew 20.3% to RM15.7 million.
In the first six months of the year, the Group posted a slightly lower revenue of RM1.27 billion as compared to RM1.35 billion in 6M FY2022. However, net profit grew by 22.5% to RM30.5 million driven by Enterprise Systems and ICT Services segments which typically enjoy higher margins. In the first half of this year, revenue from Enterprise Systems grew 10.0% while ICT Services grew 51.1% YoY. The ICT Distribution segment however experienced a revenue decline of 28.7% compared to 6M FY2022, as the consumer spending trend continues to be muted.
Chief Executive Officer of VSTECS, Mr. JH Soong commented: “In 2Q FY2023, our performance remained healthy owing to continued momentum in enterprise spending, effectively offsetting the contraction experienced in the ICT Distribution segment. This contraction was attributable to subdued consumer spending, a trend not only observed in Malaysia but also globally. The Enterprise Systems and ICT Services segments, which provide higher margins, played a pivotal role in improving our bottom line despite a decline in revenue. We concluded the quarter with a commendable PATAMI of RM15.7 million.
