KUALA LUMPUR (Feb 13): Southern Steel Bhd's net profit for its second quarter ended Dec 31, 2017 (2QFY18) almost doubled to RM69.96 million from RM36.55 million a year ago, as the group's sales and margins were higher in the quarter under review.

In a filing with Bursa Malaysia, Southern Steel disclosed that its quarterly revenue grew 30.74% y-o-y to RM956.44 million from RM731.57 million.

For the six-month period (1HFY18), Southern Steel's net profit more than doubled to RM123.38 million from RM55.86 million in 1HFY17.

Revenue, on the other hand, grew 40.91% to RM1.86 billion in 1HFY18, from RM1.32 billion in previous corresponding period.

Southern Steel expects demand to grow moderately in the coming quarters with the gradual rollout of some infrastructure projects.

However, it added that the market is expected to remain competitive with the imminent entry of new capacity to the industry.

Nevertheless, the group said it expects its performance to remain 'satisfactory' for FY18.

Southern Steel's share price gained 11 sen or 5.82% to close at RM2 today, giving it a market capitalisation of RM865.85 million.