KUALA LUMPUR (June 25): George Kent (Malaysia) Bhd’s first quarter net profit fell 37% to RM13.51 million or 2.5 sen a share, from RM21.54 million or 3.8 sen a share a year earlier, due to lower profit contributed by the engineering division.

Revenue for the quarter ended April 30, 2019 (1QFY19) dropped 17% to RM82.78 million, from RM99.76 million previously.

In a statement today, George Kent chairman Tan Sri Tan Kay Hock said the results were credible, in spite of a small loss from the LRT3 project, as construction works on the project has yet to begin.

Tan said demand for George Kent’s water meters, both within and outside the country, exceeded forecasts during this period.

The group’s manufacturing facilities were also able to meet the increased demand in a timely manner, thanks to the group's investments to increase its production capacity, he added.

“I am encouraged by the increasingly strong demand for our water meters. We continue to add new markets. We are working towards manufacturing the imported precision components, in order for us to become an integrated water meter manufacturer. This will give us better control over our water meter supply and enhance our margins,” Tan said.

The group is committed to delivering on its order book of over RM5 billion, which provides earnings visibility for the next few years, he added.

George Kent's share price ended one sen or 0.89% lower at RM1.11 today, for a market capitalisation of RM597.87 million. Year-to-date, the counter has risen 32%.