KUALA LUMPUR: Electronic manufacturing services provider VS Industry Bhd’s net profit fell to RM48.98mil in the first quarter of its financial year 2024 (1Q24), ended Oct 31, 2023, compared with RM60.71mil in the same period last year.

       In a filing with Bursa Malaysia, it said revenue also decreased by 10.9% to RM1.15bil from RM1.29bil previously.

       “The reduced earnings for the current quarter was due to lower orders from key customers, which in turn affected the overall utilisation rate of production capacity,” it said.

       VS Industry said that its Singapore operations, which acts as the marketing arm for the Malaysian business, recorded a pre-tax profit for the current quarter in line with higher sales orders from a key customer.

       “The China operations remained loss-making given the highly challenging environment in the country.

       “In the absence of large orders, the low revenue base was insufficient to cover fixed costs,” it said.

       The group also declared a second interim dividend of 0.3 sen net per share for the financial year ended July 31, 2024, to be paid on March 8, 2024.

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       On a positive note, managing director Datuk Gan Sem Yam said the planned launch of several new products by certain customers should sustain market interest in the current financial year. — Bernama