Dyna-Mac Holdings NO4 has reported net profit of $3.9 million for the 1QFY2023 ended March 31, more than double its net profit of $1.9 million in the corresponding period the year before.
The earnings surge was attributable to the higher revenue and profit margins during the quarter.
1QFY2023 revenue rose by 29.3% y-o-y to $87.3 million due to higher progressive recognition achieved for the projects carried out during the quarter.
Gross profit surged by over 200% y-o-y to $11.5 million from $5.7 million previously due to the higher revenue as well as higher margins. During the period, gross profit margin rose by 4.8 percentage points y-o-y to 13.3%.
Other income rose by 36.0% y-o-y to $1.6 million on higher interest income and partly offset by the lower government grants and lower income earned from scrap.
Other expenses of $0.2 million in the 1QFY2023, where there were none in the 1QFY2022, were due to foreign exchange (forex) loss and loss on disposal of property, plant and equipment.
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Ebitda rose by 52.4% y-o-y to $5.0 million while Dyna-Mac’s return on equity (ROE) increased by 1.6 percentage points to 7.9%.
Earnings per share (EPS) rose by 94.7% y-o-y to 0.37 cents in the 1QFY2023.
As at March 31, the group’s cash position fell by 34.0% y-o-y to $122.3 million. The group’s net order book stood at $338.1 million.
“We are pleased to report that our team continues to deliver an improved set of results for the first quarter of 2023, while navigating the inflationary cost environment and tight manpower situation. With the current and upcoming workload, Dyna-Mac’s focus will be on executing our projects successfully and delivering value to our customers,” says Lim Ah Cheng, executive chairman and CEO of Dyna-Mac.
“Looking forward, 2023 is shaping up to be a very busy year for Dyna-Mac as we ramp up production capacities to meet growing demand. Our team will continue to meet customers’ requirements by completing projects on schedule, within budget, and meet the high standards of quality, safety and reliability. We will also be looking to expand our yard operations,” he adds.
On its environmental, social and governance (ESG) goals, Lim says that the group will “continue to do more in advancing [its] sustainability agenda” after achieving its target to lowering its carbon output intensity by 25% by 2026 in 2022.
Shares in Dyna-Mac closed 2 cents lower or 6.67% down at 28 cents on May 9.
