Powerwell Holdings Berhad (Powerwell), a leading manufacturer of low voltage (LV) and medium voltage (MV) electrical power distribution equipment, is pleased to announce its first quarter results for the period ended 30 June 2023 pertaining to the financial year ending 31 March, 2024 (“FYE 2024”). The Group's performance remained strong despite the impact of complex geopolitical dynamics.
In the first quarter under review, Powerwell Group demonstrated a commendable growth trajectory for its overall revenue amounting to RM24.84 million, marking a 4.3% increase compared to RM23.81 million in the same quarter of the preceding year. Moreover, the profit before taxation surged to RM2.12 million, displaying a commendable improvement from RM1.36 million in the corresponding quarter last year.
The growth in revenue can be attributed to the upswing in sales generated from successful project deliveries, with a particular emphasis on LV switchboards and MV switchgears. Notably, the geographical distribution of revenue showcased a dominant presence in Malaysia, accounting for 88.2% of the total revenue, and also a significant contribution from Indonesia, constituting 11.8% of the total revenue.
The surge in project sales in Malaysia was underpinned by the successful completion of a multinational corporation's semiconductor plant located in Kulim Hi-Tech Park, Kedah. This achievement, combined with the elevation of the gross profit margin to 19.9% in comparison to 17.9% during the same quarter of the preceding year, synergistically fueled the Group’s remarkable increase in profitability.
Comparing with the immediate preceding quarter, the Group's revenue also experienced a sequential decline of 56.9% from RM57.66 million due to the specific project dynamics involving LV switchboards and MV switchgears.
Looking forward, Powerwell Group recognises the persistent challenges posed by global economic volatility. These external factors are expected to disrupt global supply chains, amplify cost pressures, and market volatility. In addition, the Group anticipates heightened inflationary pressures and rising interest rates, which may contribute to increased input production costs and operating expenses.
Amidst these challenges, Ms. Catherine Wong, Executive Director, said, "While we acknowledge the complex economic landscape, we’re planning to approach the current financial year with cautious optimism. We will continue its expansion of products and solutions in international overseas markets, particularly in Indonesia and Bangladesh. The Group has already established an assembly plant in Indonesia through our subsidiary, PT Powerwell Listrik Indonesia, for future business growth within the Indonesian market.”
“Moving forward, we plan to focus our future growth to revolve around data centres, semiconductor factories, renewable energy, hospitals and utility projects (such as sewage treatment and biodiesel plants). Because of this, we will continue to seek and pursue opportunities for acquisitions and collaborations to further grow the Group's revenue and profitability," she concluded.
Having said that, Powerwell Group strives to remain resilient in the face of global uncertainties, demonstrating its adaptability and strategic prowess in fostering sustainable growth.
As of 29 August 2023, Powerwell also declared that the payment of a first single tier dividend amounts to 0.6 sen per ordinary share, in respect of FYE 2024, which will be distributed on 9 October 2023 to each of the shareholders that are registered in the Record of Depositors as at 14 September 2023.