V.S. Industry Berhad reports its 1QFY24 results posting a revenue of RM1.15 billion for the current quarter under review as compared to RM1.29 billion recorded a year ago. The group said this was largely attributed to lower orders from key customers.
PAT and non-controlling interest also followed similar trend. 1QFY24 profit after tax and non-controlling interest came in at RM49 million versus RM60.7 million in the previous year corresponding quarter. This it said was due to lower overall utilisation rate of production capacity resulting from the aforementioned factor.
Commenting on the results, Managing Director of VS, Datuk S.Y. Gan said, “While global interest rate hikes have slowed down, we expect the business environment to remain challenging. The economic landscape continues to exert pressure on operational costs following increases in labour, utilities and financing expenses. In this regard, management continues to adopt prudence in ensuring a lean and efficient operating structure to mitigate the impact of heightened costs on profitability. Furthermore, our operations are supported by our lean balance sheet with low net gearing and healthy cashflow, which would strengthen our agility to navigate any unforeseen issues.”
Looking ahead, the group said the planned launching of several new models by certain customers should serve to sustain market interest in the current financial year.
