Bintai Kinden returns to the black in 1Q
KUALA LUMPUR: Bintai Kinden Corp Bhd posted a net profit of RM1.5mil in the first quarter ended June 30 (1Q22) against a net loss of RM1.3mil posted in the same quarter a year ago.
The turnaround was due to the gain on disposal of subsidiary for RM3.3mil following the group’s asset rationalisation exercise.
Revenue, however, fell 11.7% to RM12.3mil from RM13.7mil in the previous year as the impact of Covid-19 pandemic which was first felt in the aforesaid first quarter continued to weigh on its operational performance.
In Q1, Bintai’s gross profit margin increased to 30.1% from 25.5% previously, driven by variation order from completed projects in the mechanical and electrical engineering segment.
In a statement, executive director Azri Azerai said returning to profitability
had been the company’s top priority when its mechanical and electrical engineering (M&E) business was hit by Covid-19 pandemic and the extended Movement Control Order (MCO) which led Bintai Kinden to venture into the healthcare business.
“The pandemic has forced us to rethink our business strategy. Although M&E business is still our bread and butter, we need to branch out and expand our core business to diversify our revenue streams,” he said.
On its prospects, Azri said despite the challenges, Bintai Kinden would continue to focus on its core business in M&E and healthcare segments and endeavour to secure more opportunities and recurring projects in Malaysia which are able to contribute positively to the future earnings of the group.
“The challenges had made the company stronger. With the turnaround in 1QFY22, we are ready to be back on a growth trajectory and are optimistic of this financial year’s prospects,” he added.