Update IFCA MSC 2Q profit quintuples y-o-y, highest quarterly profit

by **Cals** Wed 20 Aug 2014, 01:02

Update IFCA MSC 2Q profit quintuples y-o-y, highest quarterly profit

Business & Markets 2014

Written by Kamarul Anwar of theedgemalaysia.com

Tuesday, 19 August 2014 20:00

KUALA LUMPUR (Aug 19): Accounting software developer IFCA MSC Bhd reported its highest quarterly net profit for its second quarter ended Jun 30, 2014 (2QFY14), which saw its bottom line quintupled from a year earlier, as it recognised higher billings for software sales in its China segment and for local clients seeking upgrade to software that is compliant with the impending goods and services tax (GST).

In a filing with Bursa Malaysia, IFCA said its net profit for 2QFY14 was RM3 million, which was nearly 420% higher from the previous year’s net profit of RM577,542. Revenue meanwhile, jumped by 41.2% to RM18.25 million.

“The expansion (in top and bottom lines) was attributable to higher billings in software sales, particularly in the China market segment, as well as higher billings for software upgrades due to the incoming GST in Malaysia by Apr 2015,” IFCA said in its explanatory notes accompanying 2QFY14 financials.

For the cumulative half year ended June 30 (1HFY14), IFCA’s net profit rose to RM3.42 million or 0.76 sen per share, versus last year’s RM71,169 or 0.02 sen per share. Its revenue was 40.65% higher at RM31.94 million, from 1HFY13’s RM22.71 million.

IFCA, which produces accounting software mainly for property developers and hotel and club managers, is bullish on its prospects, describing it as “strong” for the remainder of the year, as GST will drive its earnings.

“Business momentum continues to be robust across all our business units. As the GST Act 2014 was gazetted in June 2014, and businesses in Malaysia are gearing towards implementation with effect from April 2015, we anticipate our existing clients and potential new clients will need to upgrade their systems to meet the GST reporting requirement,” it explained.

As for its overseas business, IFCA said the segment will continue to be strong, as sales orders were significantly higher compared to the preceding year.

“The group’s order book continues to grow strongly and is optimistic that it will continue to report healthy growth in the remaining of the year,” IFCA concluded.