PETALING JAYA: VS Industry Bhd’s net profit for the second quarter ended Jan 31, 2022 fell to RM44.49mil from RM63.79mil in the same period last year.

       Revenue increased to RM1.01bil from RM999.31mil a year ago.

       In a filing with Bursa Malaysia yesterday, Bernama said the electronics manufacturing services (EMS) provider said the reduced profitability was affected by a combination of factors.

       The factors include an increase in labour and raw materials costs, as well as higher depreciation incurred from new facilities while mass production for a new key customer has yet to achieve optimal level.

       “These, along with the worker shortage issue and disruptions to the supply chain, in particular the component shortage, had led to lower operational efficiency,” it said.

       Moving forward, the company said the current challenging operating environment brought about by the Covid-19 pandemic and geopolitical uncertainties are expected to prevail.

       However, it said overall demand by customers remained strong and is largely expected to sustain in the coming quarters while mass production for the new key customer is expected to ramp up once the labour issue is resolved.