KUALA LUMPUR: Hiap Teck Venture Bhd’s net profit fell 6% to RM28.24mil in the second quarter ended Jan 31, from RM30.05mil a year ago.

       Its revenue for the quarter declined by 6% to RM333.2mil as compared

       to preceding year’s corresponding quarter of RM356.02mil mainly due to lower sales volume despite higher selling price.

       Its trading division reported a 21% decrease in revenue to RM155.38mil as compared to RM196.97mil in the preceding year's corresponding quarter.

       Manufacturing division reported a 12% increase in revenue to RM177.86mil as compared to previous year’s revenue of RM159.24mil.

       In the first six months to Jan 31, Hiap Teck’s net profit jumped 168% to RM99.33mil against RM37.02mil achieved a year ago.

       Revenue for the period rose 26% to RM739.83mil versus RM587.47mil.

       “Despite all the challenges, the group recorded a remarkable six months performance to-date with a profit after tax of RM99.38mil, a 167% increase over the preceding year corresponding period, mainly due to higher steel prices and higher contributions from the JV entity,” Hiap Teck said.

       The group is vigilant of the trend of steel prices and will continue to focus on prudent procurement strategies and inventory management to mitigate any potential adverse impact on performance and financial strength.

       “Management remains positive on the group’s performance in the coming quarter as the resumption of economic activity gathers momentum and business confidence improves.

       “At the JV entity, further cost savings will be achieved with the completion of its second 200,000 tonnes coke over plant which is targeted by June 2022,” Hiap Tech said.