Kronologi Asia Berhad posted a 67% drop of profit after tax (PAT) of slightly over RM1 million for the for the third quarter of fiscal year 2024 (FY2024) compared to as compared to Q2 FY2024.
In a statement, the group said this is at the back of revenue of RM67.7 million, a 15% decline from the previous quarter.
“For the nine-month financial period ended 31 October 2023 as compared to the same period last year, the group reported a comparable revenue of RM210.4 million
“The group’s EBITDA increased by 8% or RM2.7 million due to higher gross profit but its cost of sales increased by RM725,000 mainly due to higher depreciation of property, plant and equipment,” it said today (Dec 19).
The hybrid and cloud enterprise data management technology and solutions in Asia said the lower profit from operations and profit after tax mainly due to higher depreciation of property, plant and equipment (PPE).
“(It is) partly from operating costs such as office rental and staff cost which included accrued staff commissions. The PPE primarily supports the As-A-Service business segment and for future-proofing our suite of customers’ solutions.
“Higher tax expenses of around RM4.1 million or 43% was due to deferred tax liability arising from timing differences in utilisation of the capital allowance and depreciation of property, plant and equipment recognised over the years,” it said.
It added majority of the group’s revenue was recognised from Singapore and China, amounting to RM63.2 million and RM66.4 million (30% and 31.6% of total revenue), respectively, followed by Philippines which contributed 22.3% of total revenue.
By product category, the Enterprise Data Management (EDM) Infrastructure Technology segment remained the primary contributor to the group’s revenue, amounting to RM156.2 million or 74.2% of total revenue, with EDM As-A-Service making up the balance.
Kronologi group chief executive officer Edmond Tay said the group entered fiscal year 2024 in an environment that seemed to be stabilising.
“In fact, from a demand perspective, As-A-Service and project revenue performed well throughout fiscal year 2023
despite a challenging macroeconomic environment and a resultant customers spending caution,” he said.
Tay added it expect customers’ caution to persist into the rest of fiscal year 2024, and combined with the cost cut headwind from most of the regions, this may tamper its 2024 revenue growth expectations.
“We remain focused on delivering positive earnings and increasing value for our shareholders.”
For fiscal year 2024, the group expects revenue of flat to a single-digit percentage growth compared to fiscal year 2023 and is commited to its profitability and a stable EBITDA in fiscal year 2024.
