KUALA LUMPUR (Nov 4): Destini Bhd (KL:DESTINI) reported a net profit of RM5.33 million for the first quarter ended Sept 30, 2024, (1QFY2025) compared to a net loss of RM6.8 million a year ago, driven by higher sales delivery and improved operational efficiency.

The delivery of three trains and increased supply of equipment helped lift the company’s quarterly revenue to RM78.98 million from RM22.03 million in the previous corresponding quarter. 

In a separate statement, Destini said as part of its growth strategy, it plans to undertake a private placement exercise of up to 10% of its total issued shares to finance working capital for ongoing solar engineering, procurement, construction and commissioning (EPCC) projects with Indah Water Konsortium Sdn Bhd at over 350 sites nationwide.

It also said the additional funds will be used for maintaining assets for the Royal Malaysian Air Force and to invest in advanced tubular running service (TRS) equipment for Destini Oil Services Sdn Bhd to enhance its energy sector capabilities.

Destini executive director Ismail Mustaffa said that the key contracts with Malaysia’s Defence and Transport Ministries are expected to drive the group’s earnings for the next three years.

Mustaffa also noted that Destini’s order book stands at about RM791 million, with about 80% consisting of rail maintenance, repair, and overhaul (MRO) contracts mainly from Keretapi Tanah Melayu Bhd (KTMB), which will sustain the group for the next three years.

The group’s tender book stands at approximately RM688 million with the majority coming from its rail MRO segment.

At the closing bell on Monday, Destini shares were up 3.2% or one sen at 32.5 sen, valuing the group at RM162.19 million.