Destini 3Q Net Profit Surges 79% As Revenue Nearly Triples
KUALA LUMPUR (Nov 29): Destini Bhd’s net profit for its third quarter ended Sept 30, 2017 (3QFY17) surged 79% to RM8.85 million from RM4.95 million a year ago, on the back of higher contribution from its marine and aviation manufacturing services.
Quarterly revenue nearly tripled year-on-year to RM190.9 million from RM48.62 million, mainly due to higher orders for the group’s maintenance, repair and overhaul (MRO) services, marine, and aviation manufacturing services.
For its nine months ended Sept 30, 2017 (9MFY17), Destini posted a 19% increase in net profit to RM25.02 million, while revenue more than doubled to RM577.59 million from RM238.984 million the year before.
The stronger earnings was due to improved contribution from MRO services in its aviation business, and the marine manufacturing division.
“Destini’s land systems division had also contributed positively to the group’s bottomline,” it said in a filing with Bursa Malaysia today.
“Our land systems division has now started contributing more earnings to the Group as it is on the path of completing the delivery of 35 units of motor trolleys to Keretapi Tanah Melayu,” Destini’s group managing director Datuk Rozabil Abdul Rahman said.
Together with its aviation and marine manufacturing businesses, the land systems division makes up the three core businesses that drive Destini’s financial strength, Rozabil said.
On the other hand, Rozabil added that the group’s oil and gas division did not contribute positively to the group in 3QFY17.
Despite an expected challenging and competitive operating environment seen, Destini said it expects its 2017 financial results to be satisfactory.
Shares in Destini closed down 2 sen or 4.44% at 43 sen apiece, leaving the group with a market capitalisation of RM496.75 million.
Source : The Edge Markets