KUALA LUMPUR (April 20): Ajiya Bhd’s net profit more than doubled to RM6.48 million for the first quarter ended March 31, 2021 (1QFY21), from RM3.11 million a year ago, thanks to lower operating costs. Earnings per share rose to 2.21 sen from 1.05 sen.
Operating expenses shrank 11.5% to RM65.26 million from RM73.71 million in 1QFY20, the metal roofing and safety glass maker said in a bourse filing.
Ajiya said quarterly revenue dropped 5% to RM73.65 million, from RM77.50 million a year ago, due to lower demand for the group’s products.
On a quarter-on-quarter basis, the group returned to the black from a net loss of RM158,000 in 4QFY20, due to provisions for doubtful debts and write off obsolete stocks. This was despite a drop in revenue from RM80.74 million.
On its prospects, Ajiya said the shortage and delay in raw materials supplies will post a challenge to the group in the coming quarters.
Nonetheless, as Malaysia is set for recovery from the Covid-19 pandemic and the gradual return to normalisation and better business sentiments, the group said it will intensely monitor and strive to increase the market share for its products.
In addition, Ajiya said it will continue with its efforts to make its operations more efficient and technology-driven for sustainable long term growth.
Ajiya’s shares price closed one sen or 1.65% lower at 59.5 sen today, with a market capitalisation of RM181 million. The counter saw 626,900 shares traded.
