KUALA LUMPUR: Information technology (IT) software and platform provider ARB Bhd maintained its growth momentum in the second quarter (Q2) of its financial year ending June 30, 2023 (FY23), supported by the revenue generated from its customer relationship management (CRM) and smart Internet of Things (IoT) segments.
ARB's net profit jumped by 22.0 per cent for the quarter to RM4.1 million from RM3.4 million in the first quarter (Q1) FY23.
Similarly, the company's revenue was up 29.2 per cent to RM87.6 million in Q2 compared to RM67.8 million in Q1 FY23.
The quarter-on-quarter (QoQ) improvement reflects the ability of ARB to manage revenue growth while effectively controlling expenses.
The improvement was also mainly due to the higher revenue and better cost-optimisation measures ARB introduced over the last two years.
"We have managed to maintain our growth performance in the current quarter as seen by the considerable growth in both our revenue and earnings.
"The company's stable performance was mainly due to our ability to maintain our margin and grow our sales through our CRM and smart IoT segments," executive director Datuk Sri Larry Liew Kok Leong said in a statement today.
According to Liew, the earnings of ARB will continue amid the shift towards digitalisation and automation in Malaysia and in the region.
In line with the strong earnings momentum, ARB managed to record a net profit of RM7.4 million with a revenue of RM155.5 million during the first half (1H) of FY23.
Aside from the strong earnings, the company also maintained a positive operating cash flow of around RM69.2 million during 1H FY23.
Following its aggressive investment activities during the 1H FY23, ARB's cash and cash equivalent stood at around RM56.2 million without any borrowings.
With the listing of its IoT division on the NASDAQ Stock Exchange, Liew believes this will put ARB on an accelerated path to grow and tap into the available opportunities in the region.
"We believe that with the completion of the proposed spin-off of our subsidiaries on the NASDAQ Stock Exchange, our company is able to achieve greater market penetration and add value for our shareholders.
"Aside from that, the listing on NASDAQ also provides its IoT business with direct access to a new fund-raising platform, which would increase the financial flexibility of the company's IoT business to pursue its expansion and growth opportunities," Liew said.
According to him, listing on NASDAQ, a globally recognised stock exchange, would also help ARB's IoT business gain recognition and enhance its corporate reputation.