KUALA LUMPUR (March 18): Magni-Tech Industries Bhd's net profit for the third quarter ended Jan 31, 2016 (3QFY16) jumped 49% to RM26.07 million or 16.02 sen per share from RM17.49 million or 10.75 sen per share in 3QFY15, mainly due to higher garment revenue but was offset by lower operating income arising from lower currency exchange gain.

According to its quarterly report to Bursa Malaysia today, Magni-Tech's revenue grew by 34.2% to RM268.92 million compared to RM200.38 million in the corresponding quarter a year ago.

Magni-Tech said revenue for garment business in the quarter increased 40.6% mainly due to favorable effects of the US dollar against the ringgit and higher sales orders, but the revenue for packaging business dropped slightly by 0.6%.

A second single tier interim dividend of three sen per ordinary share and a single tier special dividend of two sen per share have been approved by the directors. The ex-date for both the dividends falls on April 5, and the payment date is April 26. For FY16, a total dividend of 13 sen has been declared, translating to a dividend yield of 2.9%.

For its cumulative nine-month period (9MFY16), the group recorded a 77.82% increase in net profit to RM63.27 million or 38.88 sen per share compared to RM35.58 million or 21.86 sen per share a year ago.

The group's cumulative revenue grew by 22.32% to RM660.08 million from RM539.65 million in 9MFY15.

Moving forward, the manufacturing and sales of garments will still be the group's major revenue contributor.

"The group maintains a cautiously positive outlook for the remaining quarter of the current financial year amid the global economic uncertainty.

"Both the garment and packaging businesses are expected to remain profitable for the remaining quarter of the financial year," the Bursa note said.

As of closing, shares of Magni-Tech were unchanged at RM4.48 with 123,000 shares traded, for a market capitalisation of RM729.04 million.