KUALA LUMPUR (May 26): PIE Industrial Bhd's net profit jumped 5.5 times to RM11.59 million in its first quarter ended March 31, 2017 (1QFY17) from RM2.1 million a year ago, thanks to higher revenue and higher foreign currency exchange gain.

The improved profitability was also due to the reversal of slow-moving inventory, its Bursa Malaysia filing today showed.

"However, the increase in profit was partly limited by higher operating expenses and higher provision for doubtful debts," it said.

Revenue grew 35% to RM161.87 million from RM119.73 million, as it reported higher demand from existing customers for electronics manufacturing, and raw wire and cable products.

Looking forward, PIE Industrial expects revenue to grow steadily this year with increasing orders from existing customers and ongoing new projects with potential customers.

Hence, it will "ceaselessly strengthen its vertical integration of manufacturing capability and maintain sufficient manufacturing capacity to cater to outsourcing orders from new and existing customers", it added.

However, it said the fluctuating foreign exchange rates and labour shortage would continue to affect its future earnings.

Nevertheless, it said it should achieve a satisfactory performance for FY17.

PIE Industrial shares closed unchanged at RM2.34 today, valuing the cable and wire manufacturer at RM898.66 million.