KUALA LUMPUR (May 27): Melewar Industrial Group Bhd posted a net profit of RM4.25 million or 1.88 sen per share for the third quarter ended March 31, 2016 (3QFY16) due to better margins.

The steel maker recorded a net loss of RM2.58 million or 1.14 sen a share in 3QFY15.

Revenue fell 9% to RM151.77 million from RM166.67 million, mainly due to lower sales volume in both its cold rolled and steel tube subsidiaries, and the lower average selling price as a reflection of the current soft market conditions.

For the cumulative nine months (9MFY16), Melewar recorded a net profit of RM9.2 million or 4.08 sen per share against a net loss of RM27.69 million or 12.28 sen in 9MFY15. Revenue dropped 14.5% to RM433.45 million from RM506.93 million.

Going forward, Melewar said the prospects of the group for the balance period is slightly optimistic compared to the start of the financial year due to positive developments in the steel supply chain.

"Nevertheless, the demand dynamics for steel remains delicate in line with the slower economic growth of the nation and in the region," it added.

Melewar shares closed today at 35 sen, down two sen or 5.48%, for a market value of RM77.81 million.