KUALA LUMPUR (May 30): Construction engineering group Rohas Tecnic Bhd turned in a net profit of RM6.82 million for the first quarter ended March 31, 2022 (1QFY22), compared with a net loss of RM2.16 million in the corresponding quarter, as its total revenue surged 153% year-on-year (y-o-y) to RM138 million.

The group’s revenue was boosted by the contribution of its engineering, procurement, construction and commissioning (EPCC) business, which chalked a segmental revenue of RM109.3 million, representing an increase of RM66 million or 152% from RM43.3 million in the corresponding quarter.

The EPCC business made up 79% of Rohas Tecnic’s total revenue during the quarter.

Meanwhile, its tower fabrication segment also saw an increase of 165% y-o-y in revenue to RM28.4 million, compared with RM10.7 million in the corresponding quarter. Revenue from other business activities amounts to RM0.4 million, mainly due to supply of fittings and external galvanising, said Rohas Technic in a financial statement released on Monday (May 30).

As a result, Rohas Tecnic recorded RM9.73 million in operating profits during the current quarter under review, compared with an operating loss of RM664,000 in the corresponding quarter. Profit before tax (PBT) during the quarter was RM10.17 million, while for 1QFY21 the group was in the red.

On a quarter on quarter (q-o-q) basis, Rohas Tecnic’s revenue was 125% higher compared to RM61.4 million in its immediate preceding quarter. The increase in group revenue was mainly due to higher delivery of towers, the group said.

Rohas Tecnic recorded a PBT of RM10.2 million, which is 197% higher than immediate preceding quarter's loss before tax of RM10.5 million mainly due to increase in revenue and an an impairment on contract asset and other receivable in 4QFY21.

The much better performance in 1QFY22 gave Rohas Tecnic a reason to be hopeful about its future. The group said it expects to remain profitable for the rest of 2022, barring unexpected and unforeseen circumstances.

“Our manufacturing facility in Bentong is running at near capacity to fulfil orders related to towers for Jendela and other governmental telecommunications initiatives as well as transmission grid projects delayed from last year.

“Our engineering subsidiary HGPT secured our first transmission line project in Nepal. We will also see maiden contribution from our raw water supply project in Selangor as well as the Ho Khanh Tay 2 water supply project in Long An Province, Vietnam,” the group said.

Rohas Tecnic closed at 24 sen per share on Monday, valuing the group at RM113 million. Over the last one year, the counter had lost 30.4% of its value to date.