KUALA LUMPUR (Aug 19): Industrial Internet of Things (IIoT) solutions provider SMRT Holdings Bhd (KL:SMRT) reported a 28.5% jump in net profit to RM7.16 million for the fourth quarter ended June 30, 2025 (4QFY2025) from RM5.56 million a year earlier, despite recording lower revenue.

It attributed the growth in earnings to a sharp reduction in administrative expenses, higher margins from its recurring income business and Philippines operations turning fully profitable.

In a filing with Bursa Malaysia on Tuesday, the group recorded a 2.8% decrease in revenue for the quarter under review to RM17.3 million compared to RM17.8 million previously.

SMRT said its recurring revenue stream, which is underpinned by continued growth in managed sites, increased to over 28,100 sites as of June 2025 from 25,558 a year earlier. The segment now accounts for a larger share of total income and carries higher margins, contributing to improved overall profitability, it added.

Its operations in the Philippines, which completed their first full financial year, are now fully profitable, with 100% of revenue derived from recurring income.

For the full year ended June 30, 2025, SMRT posted a 9.2% increase in net profit to RM28.42 million from RM26.04 million last year, on the back of a 4.1% rise in revenue to RM71.92 million from RM69.09 million.

SMRT group managing director Maha Palan said: “We are pleased to conclude the financial year on a firm note, supported by our ongoing initiatives to strengthen our presence in key markets and verticals, despite operating against a more volatile regional economic environment.”

“Moving forward, we remain committed to further broadening our reach into new geographical markets and industry segments across ASEAN, while actively exploring synergistic mergers and acquisitions to support our growth ambitions.”

SMRT shares were up 0.5% or 0.5 sen to close at 91.5 sen apiece on Tuesday, valuing the group at RM418.74 million. Year-to-date, the stock has declined 29%.