KUALA LUMPUR (May 24): Uchi Technologies Bhd’s net profit for the first quarter ended March 31, 2021 (1QFY21) rose 25.9% to RM20.17 million, from RM16.03 million a year ago, due to higher demand for the group's products and services.

Revenue grew 11.4% to RM39.61 million, from RM35.55 million in 1QFY20, the group's filing to Bursa Malaysia showed.

On a quarter-on-quarter basis, the group’s net profit fell 37.6% from RM32.33 million, while revenue slipped 26.1% from RM53.56 million.

The group said the lower profit was due to seasonal lower sales volume, depreciation of the US dollar against the ringgit and a net fair value loss on derivative financial instruments of RM2.6 million.

The group did not declare any dividend for the latest quarter.

Barring any unforeseeable impacts that may be caused by the Covid-19 pandemic and the US-China conflict, the group expects a high single-digit revenue growth in US dollar for FY21.

“We do not expect any significant changes in our principal geographical areas of distribution and product group contributions,” it said.

Uchi Technologies said factors that will affect its performance include fluctuations in US dollar, material shortages or fluctuations in material prices and increasing labour costs.

“Nevertheless, the group is confident that we will remain profitable and maintain a strong balance sheet,” it said.

Uchi Technologies shares closed five sen or 1.67% higher at RM3.04 today, valuing the group at RM1.38 billion.