KUALA LUMPUR: Powerwell Holdings Bhd (PHB) posted a profit before tax (PBT) of RM12.03 million for the third quarter (Q3) ended December 31, 2023 (FY24), a seven-fold jump from RM1.61 million posted in the same quarter last year.
This leap in profitability was mainly due to the higher gross profit margin realised from key projects, particularly in the data centres, solar power plant project and semiconductor plant project, underlining the strong performance and growth trajectory in these sectors.
The gross margin for PHB improved to 26.6 per cent in Q3 FY24 compared to 12.8 per cent in the same quarter a year ago.
Accompanying this substantial increase in profitability, PHB also recorded a notable 49.9 per cent increase in revenue for Q3 FY24, reaching RM67.48 million, compared to RM45.03 million in Q3 FY23.
The revenue growth was primarily driven by higher sales from Bangladesh due to project sales from the successful deliveries of the solar power plant and garment and yarn projects.
Aside from that, the company also achieved a milestone entry into the Australian market in Q3.
Meanwhile, Malaysia saw a reduction in project sales in Q3 FY24 as the semiconductor plant is nearing its completion.
This decline was offset by the uptick in sales in high-value projects such as commercial properties and data centre projects.
PHB executive director Catherine Wong Yoke Yen said Q3 performance reflects the strength and resilience of the company’s strategic initiatives and the team’s hard work.
“We are particularly proud of our expansion into new markets and the successful delivery of high-value projects, which have significantly contributed to our growth,” she said in a statement.
On PHB’s overseas expansion, Wong said the successful delivery of low-voltage switchboards to a factory in Australia reflects the company’s ability to deliver projects internationally.
PHB also saw strong growth in Bangladesh, supported by successful deliveries of projects, including those in the solar power plant and garment and yarn projects.
The year-to-date performance echoed this positive trend, with revenue of RM132.90 million, up from RM101.42 million.
Meanwhile, PBT jumped more than three times to RM17.73 million during the first nine months of FY24, from RM4.98 million in the same quarter last year.
“Looking forward, we are focused on sustaining our growth momentum while continuing to explore new opportunities for expansion and enhancing shareholder value.
“PHB will leverage its market strengths, diversify its offerings and capitalise on opportunities in infrastructure and renewable energy sectors.
“We believe our strong fundamentals, as seen by our improving balance sheet and resilient earnings growth, track record, commitment to timely project delivery and adaptability, position us well for future success despite the current uncertain global economic climate,” Wong said.
The company’s declaration of its second single-tier dividend of 1.4 sen per ordinary share for the financial year ending March 31, 2024, supports the positive outlook, reflecting confidence in its financial health and future prospects.
This brings the total dividend for the first nine months of FY24 to 2 sen per ordinary share.
