KUALA LUMPUR (Oct 24): Technology company ViTrox Corp Bhd (KL:VITROX) saw its net profit for the third quarter ended Sept 30, 2024 (3QFY2024) fall 32.5% to RM22.45 million, from RM33.25 million a year earlier, amid a weak US dollar, which led to a notable unfavourable foreign exchange loss.
As a result, earnings per share for 3QFY2024 were lower at 1.19 sen, compared with 1.76 sen for 3QFY2023.
Quarterly revenue saw a marginal 2.2% drop to RM146.7 million from RM150 million a year earlier, due to slow demand recovery, causing ViTrox to experience temporary soft demand for automated board inspection.
No dividends were proposed for the quarter under review.
For the cumulative nine months ended Sept 30, 2024 (9MFY2024), net profit fell 34.8% to RM67.78 million from RM103.9 million a year earlier, while revenue decreased 6.7% to RM403.51 million from RM432.7 million for 9MFY2023.
In a filing with Bursa Malaysia on Thursday, ViTrox said despite the prolonged global economic recovery, the group remains cautiously optimistic about its prospects for 4QFY2024, amid currency fluctuations and intense pricing competition.
"The supply chain disruption due to the Red Sea crisis and US port strikes also affect global shipments and increase shipping costs. However, ViTrox will continue demonstrating resilience and adaptability, seizing every opportunity amid market volatility while implementing precautionary measures to mitigate the financial impact of currency instability and the slow economic recovery," it added.
As at Sept 30, 2024, ViTrox's total borrowings stood at RM46.94 million, while its cash and equivalents were RM319.16 million, giving it a net cash position of RM272.22 million.
Shares in ViTrox closed down 14 sen or 3.9% at RM3.45 on Thursday, giving it a market capitalisation of RM6.53 billion. The stock has fallen 3.6% so far this year.