Boilermech 3Q net profit down 22.5% on lower revenue

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KUALA LUMPUR (Feb 13): Biomass boiler manufacturer Boilermech Holdings Bhd's net profit for the third quarter ended Dec 31, 2017 (3QFY18) fell 22.5% to RM5.0 million from RM6.46 million in 3QFY17, on lower revenue. 

Quarterly revenue stood at RM56.58 million, down 9.9% from RM62.81 million in the previous year.

In a filing with Bursa Malaysia, Boilermech said the decrease in revenue was mainly due to lower contribution from its bio-energy segment, as a result of lower sales orders secured in the previous year. 

This was partially offset by higher revenue contribution from its water treatment segment, which saw sales climbing 6.2% year-on-year during the quarter under review. 

For the cumulative first nine months of FY18 (9MFY18), Boilermech's net profit fell 12.7% to RM14.47 million from RM16.57 million recorded a year ago, following an 11.8% drop in revenue to RM157.82 million from RM179.01 million.

Moving forward, Boilermech said its board of directors is optimistic on the prospect of the group, as its order book has improved. 

Boilermech's shares slid 2 sen or 2.5% to close at 78 sen today, for a market capitalisation of RM402.48 million.