KUALA LUMPUR (May 26): Sarawak Cable Bhd's (SCable) net profit fell 70% to RM3.57 million or 1.13 sen a share for its first quarter ended March 31, 2016 (1QFY16) from RM11.87 million or 3.74 sen a share a year ago, mainly due to customers' delay in projects to subsequent quarters.

Revenue, however, rose 6% to RM364.46 million in 1QFY16 from RM343.61 million in 1QFY15.

In a statement today, SCable group managing director Aaron Toh said he is happy to see that despite the slowdown in economy and less favourable market conditions during 1QFY16, the group managed to record a profit.

However, he is cautiously optimistic on the group's outlook for the financial year ending Dec 31, 2016 (FY16) supported by an order book in hand of RM1.38 billion, of which more than RM500 million is from its manufacturing division and the rest is from ongoing projects.

Toh expects revenue from its manufacturing division to see accelerated growth towards 2QFY16 and 3QFY16 and is confident that this division will outperform the RM900 million achieved in FY15.

"In terms of project division, continuous efforts in bidding for new projects have always been ongoing and we are expecting to sustain the contribution from this division despite some delays in tenders during 1QFY16," he said.

"Riding on continuous infrastructure developments under the Sarawak Corridor of Renewable Energy and the potential spins-off demands from Pan Borneo Highway development, the group foresees further boost in its order book from potential participation (whether directly or indirectly) in the related electrical packages as well as installation works," he added.

SCable also expects to increase its export sales and is readying its mini-hydro power plant in Indonesia for commissioning by 4QFY16 to increase its revenue from overseas operations.

SCable's share price closed up one sen or 0.72% today at RM1.40, for a market capitalisation of RM443.87 million.