KUALA LUMPUR (Jan 30): Lower profit margins and sales volume ate into the net profit of Perusahaan Sadur Timah Malaysia Bhd (Perstima), which fell by 76% year-on-year to RM3.4 million in its third quarter ended Dec 31, 2017 (3QFY18), from RM14.16 million.

Quarterly revenue, however, was up a marginal 0.4% y-o-y to RM233.89 million from RM233.04 million, as higher average selling price made up for the lower sales volume, said Perstima in a stock exchange filing today.

"The lower profit margin was due to higher production cost not fully passed to customers in order to maintain price competitiveness for the period under review," it said.

In the nine months ended Dec 31, 2017 (9MFY18), Perstima's net profit slumped by 75.1% to RM9.75 million from RM39.2 million in the previous corresponding period, though revenue rose 15.94% to RM705.73 million from RM608.69 million.

On prospects, Perstima expects its operating environment to face challenges from higher imports from overseas.

"Although this factor will affect the growth and profitability of the group, the management will continue with its production efficiency, cost saving measures and marketing efforts in order for the group to be profitable," it added.

Perstima shares slid 3 sen or 0.7% to settle at RM4.22 today, bringing the market capitalisation of the tinplate manufacturer to RM419.07 million. In the past one year, the stock has retreated 36.2%.