ELK-Desa Resources 2Q net profit up 11.6% to RM9.62m, declares dividend 3.50 sen

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KUALA LUMPUR (Nov 20): ELK-Desa Resources Bhd net profit for the second quarter ended Sept 30, 2019 rose 11.6% to RM9.62 million from RM8.62 million a year earlier, due to the improved performance in its hire purchase portfolio for the quarter under review.  

In a filing to the stock exchange Nov 19, the firm said revenue for the quarter rose to RM36.62 million from RM30.99 million previously.

Earnings per share was 3.24 sen versus 2.94 sen earlier.

ELK-Desa declared an interim dividend of 3.50 sen per share for the financial year ending March 31, 2020 to be paid on Jan 15, 2020.

For the six months ended Sept 30, ELK-Desa’s net profit rose 13.2% to RM18.89 million from RM16.69 million on the back of revenue RM71.82 million versus RM59.82 million a year earlier.

In a separate statement, ELK-Desa executive director and chief financial officer Teoh Seng Hee said the first half of the financial year continues to see a sustained growth trajectory for ELK-Desa.

“We are confident of closing out our 2020 financial year on a positive note.

“Our confidence stem from the stable outlook of key macro-economic indicators like low inflation rate and high employment rate, all of which are important factors that drive the performance of our hire purchase financing business.

“Moving forward, we are encouraged by the Government’s recently announced budget initiatives to alleviate the rising cost of living, enhance employability of Malaysians and spur economic growth. In particular, we believe that the reduced toll rates and petrol subsidy programme for deserving Malaysians are favorable to our hire purchase customers,” said Teoh.