KUALA LUMPUR (Oct 29): Infoline Tec Group Bhd (KL:INFOTEC) reported a 54.6% increase in net profit for the third quarter, driven by strong contributions from its managed IT services segment and the successful delivery of key IT infrastructure and cybersecurity projects.

Net profit for the three months ended Sept 30, 2024 (3QFY2024) was RM8.04 million, compared to RM5.2 million in the same period a year earlier, as revenue surged 86.8% to RM30.45 million from RM16.3 million. Earnings per share (EPS) rose to 2.21 sen from 1.43 sen previously.

This is Infoline’s highest quarterly earnings since its debut on the ACE Market in July 2022. The group has recently secured approval from the Securities Commission for its transfer of listing to the Main Market.

The group also declared an interim single-tier tax-exempt dividend of 0.79 sen per share to be paid on Nov 28.

Looking ahead, Infoline sees potential in rising technology adoption, particularly among large and medium enterprises undergoing digital transformation, which will drive substantial investments in IT infrastructure and cybersecurity, said its chief executive officer Choo Wei Chuen in a statement.

He added that as reliance on IT infrastructure grows, so too will the demand for the group's expertise and services.

“While Malaysia remains a key market and forms the base of our operations, we are also seeing expanding job flows from both India and China, where multinational corporations and key clients are ramping up investments.

“Notably, the standout performance in the Managed IT Services segment is made possible by our dedicated Cyberwatch Centre and the in-house team of experts, which we expect to remain a core differentiator going forward. 

"With our strong-positioning and innovative solutions, Infotec is poised to meet the evolving needs of our clients both locally and internationally,” he added.

For 9MFY2024, the group’s net profit declined 15.3% to RM9.62 million from RM11.35 million amid lower margin and higher costs, although revenue climbed 61.1% to RM72.5 million from RM45.01 million. EPS for 9MFY2024 decreased to 2.65 sen from 3.12 sen in 9MFY2023.

Infoline’s share price closed unchanged at 95 sen on Tuesday, giving the IT infrastructure and cybersecurity service provider a market capitalisation of RM345.1 million.