KUALA LUMPUR(Aug 5): Notion VTec Bhd (KL:NOTION) logged an eleven-fold increase in net profit for the third quarter ended June 30, 2024 (3QFY2024) to RM20.25 million from RM1.82 million a year earlier, on the back of higher revenue.

Earnings per share rose to 3.9 sen from 0.35 sen previously, the hard disk drive(HDD) component maker said in a filing to the local stock exchange. No dividend was declared for the quarter.

This is Notion VTec's best quarterly net profit since 4QFY2018, when it reported earnings of RM36.54 million.

Quarterly revenue increased 63% year-on-year (y-o-y) to RM135.5 million from RM83.2 million, boosted by higher contributions from the HDD and electronic manufacturing services (EMS) segments.

HDD revenue stood at RM38.6 million for the quarter, more than doubling from RM15.9 million in the previous corresponding quarter while EMS revenue rose 93% y-o-y to RM55.6 million from RM28.9 million.

For the nine months ended June 30, 2024 (9MFY2024), the group recorded a net profit of RM42.2 million compared to a net loss of RM9.6 million in 9MFY2023, as revenue increased 36% to RM340.9 million from RM251.2 million during the same period.

On the outlook, the group expects to progress at a moderate pace for the remainder of the financial year, following three consecutive quarters of robust growth. Nevertheless, it is confident that FY2024 will set a new benchmark for both revenue and profits, marking a record year for the group.

"This period of stabilised earnings will position us well as we prepare for further expansion in the next financial year," the group noted.

Shares in Notion VTec closed 28 sen, or 13.79%, lower at RM1.75 on Monday amid widespread selling in the market, giving the group a market capitalisation of RM932.56 million. However, the counter has risen by over 450% from 31.8 sen since the beginning of the year.