KUALA LUMPUR (May 27): D&O Green Technologies Bhd (KL:D&O) posted a 13-fold jump in its net profit for the first quarter ended March 31, 2024 (1QFY2024) as higher capacity utilisation, coupled with better cost management, improved the automotive light-emitting diode (LED) manufacturer’s gross margin.

Net profit for 1QFY2024 rose to RM11.28 million from RM863,000 a year ago, lifted by a 27.5% increase in revenue to RM273.74 million from RM214.72 million previously, D&O's bourse filing on Monday showed.

Concurrently, higher capacity utilisation, coupled with better cost management and productivity improvements, pushed gross margin up by 5.2% to 21%.

With the rise in global car sales and increasing use of LEDs in new car designs, driven by the pursuit of enhanced safety features, aesthetic appeal and comfort, D&O said the outlook for the automotive LED industry remains positive.

"D&O is strategically positioned to capitalise on this trend, given its extensive product portfolio and ready capacity. Barring any unforeseen circumstances, the group remains optimistic of achieving double digit revenue growth in 2024," it added.

Shares in D&O ended three sen or 0.82% higher at RM3.71 on Monday, giving the group a market capitalisation of RM4.59 billion.