Permaju remains in the red, posts 3Q net loss of RM2.2m

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KUALA LUMPUR: Permaju Industries Bhd continued to bleed red ink for its third financial quarter ended March 31, 2020 (3QFY20) with a net loss of RM2.23 million on revenue of RM14.33 million, dragged by lower sales in its automotive division.

There were no comparative numbers from the previous year's corresponding period due to a change in its financial year end from Dec 31 to June 30.

"In the automotive division for the current quarter, the vehicle sales decreased as compared to the previous quarter. While for the property development division, 13 residential units were sold during the current quarter compared to none in the previous quarter," it said in its results filing with Bursa Malaysia today.

For the nine-month period ended March 31, 2020, the group posted a net loss of RM3.58 million on revenue of RM51.69 million.

Permaju, which is mainly involved in distribution of vehicles, property development and plantation, has not been successful at turning the company around after being in the red since the financial year ended Dec 31, 2007 (FY07).

Going forward, the group said the automotive division may continue to face weak sales citing potential rise in unemployment rate, cautious spending by consumers and strict lending requirements from financial institutions.

It also expects the property sector to remain challenging due to "weak demand and oversupply market".

"Barring any unforeseen circumstances, the board expects the results of the group to be satisfactory," it said, adding that the group's planned rights issue would provide additional working capital, which will be positive for the group's operations moving forward.

Early this month, Permaju announced its plans to venture into bottling and distributing sanitiser products, as well as selling air purification products amid the Covid-19 pandemic. It has also incorporated a company named Permaju Glove Sdn Bhd to venture into the rubber gloves business.