PETALING JAYA: Southern Steel Bhd expects demand to gradually improve in the coming months but continues to be concerned with price volatility of both raw materials and finished products.

       In a Bursa Malaysia filing, the steel product manufacturer said the group’s performance for the financial year ending June 30, 2022 is expected to be satisfactory.

       For its first quarter ended Sept 30, 2021 (Q1), revenue rose 9.6% year-on-year to RM487.1mil while net profit was RM32.1mil compared with a net loss of RM28.1mil a year ago.

       Earnings per share was 5.39 sen compared with a loss per share of 4.72 sen a year ago.

       Southern Steel said the higher revenue in Q1 was due to higher selling prices, while the profit was due to improved margins.

       “The higher revenue for the quarter under review as compared with the corresponding quarter of financial year 2021 (FY21) was due to higher selling prices.

       “The profit for the quarter under review as compared with the loss in the corresponding quarter of FY21 was attributable to improved margins,” the company said in its notes accompanying its results announcement to Bursa Malaysia.

       It said the business operations of the group during the quarter under review were affected by both cyclical factors in the construction industry as well as festive seasons.

       There was no dividend paid during the quarter under review and financial year-to-date.