ViTrox 3Q net profit halves on lower sales

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KUALA LUMPUR (Oct 24): ViTrox Corp Bhd saw its net profit halved to RM13.86 million or 2.94 sen per share in its third quarter ended Sept 30, 2019 (3QFY19), from RM28.02 million or 5.96 sen per share in the year-ago quarter, due mainly to sales volume decline.

The group also attributed the lower profitability to its product mix during the quarter, besides its continuous investment in research and development (R&D) activities, according to its exchange filing today.

Quarterly revenue contracted 34.6% to RM66.51 million, from RM101.77 million in the year-ago quarter, on lower customer demand for its automated board inspection (ABI) and machine vision system (MVS), its filing showed.

This brings ViTrox's nine-month (9MFY19) net profit to RM61.86 million, down 18.6% against RM76.04 million in the corresponding period last year.

Cumulative revenue came in 14% lower at RM244.5 million, compared with RM284.1 million in 9MFY18.

ViTrox said it will continue to focus on market expansion activities, customer relationship building and product innovation, to grow its business further in its new financial year.

"Besides that, the group has taken steps to minimise its net monetary assets in order to mitigate the financial impacts arising from currency fluctuation," it added.

Shares in ViTrox closed four sen or 0.49% lower at RM8.07 apiece, after 48,400 shares crossed. The stock has gained over 28% thus far this year, to now bring a market capitalisation of RM3.8 billion.