KUALA LUMPUR (Feb 23): Eita Resources Bhd’s first quarter net profit fell 32.2% to RM7.1 million or 5.44 sen per share from RM10.4 million or 8.02 sen per share a  year ago on lower contribution from its manufacturing segment as well as an unrealized forex loss.

During the quarter ended Dec 31, 2018, the group saw an unrealized forex loss of RM700,000 on fair valuation of the forward exchange contracts, compared to a gain of RM2.5 million previously.

The manufacturing segment’s profit before tax (PBT) in the quarter fell 68.3% to RM2.99 million partly due to lower execution of elevator projects, the group said in a filing with Bursa Malaysia.

The marketing and distribution segment also saw its PBT falling by 9.4% to RM2.2 million. Only the services segment maintained growth of 78.6% to RM3.54 million.

Eita said its quarterly revenue also fell by 15.2% to RM70.1 million from RM82.7 million in the previous year’s first quarter.

The marketing and distribution segment’s revenue rose 1.8% year-on-year to RM22 million mainly due to higher demand for electrical and electronics components.

The manufacturing segment’s revenue fell 25.7% to RM36.6 million, while the service segment’s revenue dropped 2.5% to RM11.5 million mainly due to lower execution of Transmission Sub-Station projects.           

“The general business environment remains challenging,” Eita said, adding that the group will continue to strive to deliver satisfactory results with its current order book and ongoing projects in hand.

Eita’s share price rose 0.6% to RM1.61 today, giving the group a market capitalization of RM209.3 million.