Powerwell reports over seven-fold jump in pre-tax earnings for 3Q FY3/2024

POWERWELL Holdings Bhd, a leading manufacturer and distributor of electrical distribution products, has reported a more than seven-fold jump in its pre-tax profit for its 3Q FY3/2024 ended Dec 31, 2023.

The pre-tax profit surged to RM12.03 mil during the period under review from RM1.61 mil a year ago, marking a significant milestone in the group’s financial performance.

This leap in profitability was mainly due to the higher gross profit margin realised from key projects, particularly in the data centres, solar power plant project and semiconductor plant project, hence underlining the strong performance and growth trajectory in these sectors.

Accompanying this substantial increase in profitability, Powerwell also recorded a notable 49.9% jump in revenue for its 3Q FY3/2024 to RM67.48 mil from RM45.03 mil previously.

The revenue growth was primarily driven by higher sales from Bangladesh that stemmed from the group’s successful deliveries of solar power plant as well as garment and yarn projects. Aside from that, Powerwell also achieved a milestone entry into the Australian market during the quarter under review.

Catherine Wong Yoke Yen

Meanwhile, Malaysia saw a reduction in project sales during 3Q FY 3/2024 as its semiconductor plant is nearing completion. This decline was nevertheless offset by an uptick of sales in high-value projects such as commercial properties and data centres projects.

“This quarter’s performance reflects the strength and resilience of our strategic initiatives and our team’s hard work,” Powerwell executive director Catherine Wong Yoke Yen pointed out. “We are particularly proud of our expansion into new markets and the successful delivery of high-value projects which have significantly contributed to our growth.”

On the group’s expansion overseas, Wong shared that the successful delivery of low-voltage switchboards to a factory in Australia reflects the group’s ability to deliver projects on the international stage.

Powerwell’s nine-month performance also echoed this positive trend with revenue of RM132.90 mil, up from RM101.42 mil in 9M FY3/2023. Meanwhile, the group’s pre-tax profit surged by more than three times to RM17.73 mil during the period from RM4.98 mil in the corresponding period last year.

“Looking forward, we are focused on sustaining our growth momentum while continuing to explore new opportunities for expansion and enhancing shareholder value,” envisages Wong. “The group will leverage its market strengths and diversify its offerings by capitalising on opportunities in infrastructure and renewable energy sectors.”

The positive outlook is supported by the group’s declaration of its second single-tier dividend of 1.4 sen/share for its financial year ending March 31, 2024 which brings the group’s total dividend for the first nine months of its FY3/2024 to 2 sen/share.

At the close of today’s trading, Powerwell was up 0.5 sen or 1.89% to 27 sen with 1.11 million shares traded, thus valuing the company at RM157 mil. – Feb 22, 2024

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