Solid Auto Q2 net profit doubles on lower finance cost

by **Cals** Tue 30 Dec 2014, 02:25

Solid Auto Q2 net profit doubles on lower finance cost

KUALA LUMPUR (Dec 29): Automotive parts and components trader Solid Automotive Bhd ([You must be registered and logged in to see this image.] Financial Dashboard)'s net profit for its second financial quarter ended Oct 31, 2014 (2QFY15) has doubled to RM3.13 million from RM1.43 million a year ago, due to lower finance costs.
Its revenue for the quarter also improved; it went up 16.26% to RM36.4 million compared to RM31.31 million in the previous corresponding quarter due to high revenue in both its domestic and export markets, which had offset the negative impact of lower overall margins, its filings with the local bourse today showed.
Earnings per share (EPS) for 2QFY15 was at 2.09 sen, compared with 1.07 sen in 2QFY14, which the group noted was due to a significantly lower finance costs of RM166,000 in 2QFY15, compared with RM1.66 million last year.
In the six-month period (1HFY15), the group registered a net profit of RM5.36 million, over two-fold from RM2.59 million in 1HFY14. Its 1HFY15 revenue was RM67.89 million, up 16.21% from RM58.42 million previously.
EPS also improved to 3.58 sen in 1HFY15, versus 2.08 sen in previous corresponding period.
On prospects, the group said the Malaysian economy is facing uncertainty amid tumbling oil prices and concerns about the rising cost of doing business, which will be challenging going forward.
"Our export market, principally the Middle East, continues to remain robust. The group will continue to work on improving operational efficiency and productivity and increase sales and marketing efforts in both domestic and export market.
"Further the group will continue to focus on higher value-added products, enhancing our brands and expanding our product range," it added.
Solid Auto climbed one sen or 6.9% to close at RM1.55 today, with 4.47 million shares traded, giving it a market capitalisation of RM232.5 million.