KUALA LUMPUR (Jan 11): Autoparts maker and duty-free goods trader Atlan Holdings Bhd's net profit rose 9.48% to RM6.47 million in the third quarter ended Nov 30 (3QFY2024) from RM5.91 million a year ago on the back of higher revenue from the automotive segment.

Quarterly revenue grew by 19.12% to RM117.19 million compared with RM98.38 million in the previous corresponding period, resulting in an improved earnings per share of 2.55 sen, up from 2.33 sen.

The group declared a second interim dividend of four sen, payable on Feb 22.

Atlan’s automotive segment's profit before tax (PBT) rose by 53.1% to RM9.12 million from RM5.96 million, with revenue increasing by 33.1% to RM69.76 million from RM52.41 million, driven by higher orders from customers.

However, the duty-free segment recorded a lower PBT of RM1.8 million compared with RM5.01 million in the previous year, as revenue decreased by 10.8% to RM38.68 million from RM43.36 million, primarily due to lower other operating income and higher employee benefit expenses.

For the nine-month period (9MFY2024), Atlan recorded a net profit of RM15.28 million, marking a 16.23% increase from RM13.14 million in 9MFY2023. Revenue for the same period jumped by 23.3% to RM324.9 million from RM263.5 million.

Looking ahead, the group anticipates a challenging business environment for the remaining quarter of FY2024, citing escalating product and operating costs due to the weakening ringgit against major foreign currencies. Additionally, it notes the strain of inflationary pressures and a cautious approach to consumer spending.

Despite these challenges, Atlan expresses commitment to enhancing operational efficiency and effectiveness, implementing stringent cost control measures, and formulating strategies to navigate the evolving business landscape.

Shares in Atlan settled unchanged at RM2.77 on Thursday, giving the group a market capitalization of RM702.61 million.