KUALA LUMPUR (Nov 26): Greatech Technology Bhd (KL:GREATEC) announced on Tuesday that its third quarter net profit has halved on foreign exchange losses.

It recorded a net profit of RM22.95 million for the quarter ended Sept 30, 2024 (3QFY2024), down 50.8% from RM46.66 million in the same quarter last year, according to the automation solutions provider’s bourse filing on Tuesday. 

Revenue for 3QFY2024 dropped 16.03% to RM188.79 million from RM224.82 million in 3QFY2023 following the completion of certain projects, reduced industrial activity in the e-mobility sector and unfavourable project execution timing for the solar sector, it said. No dividend was declared.

The group booked a realised forex loss of RM12.66 million for 3QFY2024, together with an unrealised forex loss of RM12.04 million. In contrast, it recorded a realised forex gain of RM3.82 million for 3QFY2023, and an unrealised forex loss of RM5.28 million.

For the nine months ended Sept 30, 2024 (9MFY2024), net profit slipped 8.37% to RM103.37 million from RM112.82 million in 9MFY2023, as revenue rose 8.42% to RM546.54 million from RM504.11 million.

Greatech noted that the ringgit's recent appreciation serves as a short-term challenge for the group. Nonetheless, it remains cautiously optimistic on the stability of the exchange rate moving forward and is monitoring it closely.

“Despite these external headwinds, the markets in which the group operates continue to demonstrate resilience. Demand for specialised machinery in the life sciences, solar and e-mobility sectors remains strong, with sustained interest from customers in the life sciences and solar sectors and more cautious demand in the e-mobility space,” Greatech said.

The group added that its order book remains healthy, with stable order growth expected for the remainder of the year.

Shares in Greatech ended one sen or 0.47% lower at RM2.11 on Tuesday, valuing the group at RM5.3 billion.