KUALA LUMPUR (Sept 29): Metal roof sheets manufacturer and seller Astino Bhd reported a 40.03% drop in its net profit for its final quarter ended July 31, 2017 (4QFY17) at RM5.06 million, from RM8.44 million posted a year ago.

Its quarterly revenue stood at RM124.82 million, 11.57% higher from RM111.88 million registered in the corresponding quarter last year.

According to Astino's filing with the stock exchange this evening, lower earnings for the quarter under review was mainly due to higher allowance for diminution in value of inventories, which was RM2.7 million more than last year.

Meanwhile, revenue grew during the quarter thanks to increased overseas sales of RM12 million, compared with RM3 million last year.

Concluding the year, Astino said net profit came in at RM34.44 million, up 13.47% from RM30.35 million, as revenue grew 5.89% from RM472.73 million in FY16 to RM500.59 million in FY17.

The company attributed its improved full-year top and bottom lines to the hike in steel price, as well as increased demand from its overseas market.

However, moving forward, Astino expects local steel industries to face a squeeze in profit margin due to weak domestic demand, high production costs, and volatility of foreign currency.

“To meet the challenges ahead, the group will continue to focus its efforts on improving its operational efficiency and explore the possibility of producing new metal building materials to penetrate into new market segments of local and overseas”, read the filing.

At market close today, the counter slipped three sen or 2.59% to settle at RM1.13 apiece, giving it a market capitalisation of RM309.75 million.