Serba Dinamik Reports Its Lowest Quarterly Profit Since Becoming Public

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Serba Dinamik Holdings Bhd, which is mired in an audit dispute with former external auditor KPMG, reported its lowest quarterly net profit since its 2017 listing on Wednesday, owing to a decline in earnings across all business sectors.

The group’s net profit of RM14.92 million for the six months ended June 30, 2021 (6QFY21) was 86.84 percent lower than the RM113.32 million reported in the preceding quarter.

Revenue decreased 12.74 percent to RM1.21 billion in 5QFY21, from RM1.38 billion in the previous quarter.

Due to the group’s change in financial year end from December 31 to June 30, no year-on-year comparisons were offered.

Serba Dinamik stated in a filing with Bursa Malaysia that its operation and maintenance (O&M) division accounted for 90.5 percent of revenue in both quarters. Revenue decreased to RM1.09 billion in 6QFY21 from RM1.25 billion in 5QFY21, while gross profit decreased by 42.1% to RM124.34 million from RM214.58 million.

Revenue in the engineering, procurement, construction, and commissioning (EPCC) sector increased to 100.4 million from RM99.3 million in 5QFY21, owing primarily to increased EPCC activity in the UAE, Turkmenistan, and Indonesia. However, gross profit decreased 36% to RM9.09 million from RM14.21 million.

The group’s ICT segment earned RM11.8 million in sales and RM2.2 million in gross profit, notably less than the RM30.79 million in revenue and RM5.95 million in gross profit in 5QFY21. The segment generated revenue primarily via the supply of services related to XR training applications in the UAE.

Additionally, the education and training division reported lower sales of RM948,000 versus RM1.61 million in 5QFY21, with gross profit falling 42.2 percent to RM424,000 from RM763,000.

Serba Dinamik recorded a net profit of RM759.98 million on revenue of RM8.61 billion for the cumulative 18-month period ended June 30, 2021.

Serba Dinamik expressed optimism about the future, stating that the group remained optimistic that the immunisation programme would develop a herd community and enhance commerce and the economy.

“Geographically, the Middle East and Southeast Asia will continue to be the group’s primary contributors. Meanwhile, the business intends to expand its footprint in Central and South Asia, as well as Africa, where it sees more opportunities,” it added.

Serba Dinamik’s share price ended Wednesday at 33.5 sen, down one sen or 2.9 percent, for a market capitalisation of RM1.25 billion.

Published by Zack Baharum

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