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Continuous improvement from technology division lifted SMRT earnings

KUALA LUMPUR: SMRT Holdings Bhd (SHB) posted a revenue of RM227.7 million for the fifteen-month (15M) ended March 31, 2023 (FY23), with RM73.2 million coming from its technology arm. 

The company achieved a net profit of RM55.8 million for the period, mainly attributed to the higher contribution from the technology division and a one-off disposal gain of RM66.5 million that was partially offset by a goodwill impairment amounting to RM27.2 million, which arose from the company's recent restructuring activities.

SMRT changed its financial year end to June 30 2023, from December 31 2022. 

As a result, comparative figures were unavailable for the preceding year's corresponding quarter and period.

On a sequential basis, SHB's revenue rose 5.0 per cent quarter-on-quarter (QoQ) to RM48.2 million in the fifth quarter (Q5) FY23 from RM45.9 million in the immediate preceding quarter, primarily attributed to the growth in the technology business. 

At the net profit level, the technology segment reported a healthy QoQ growth of 108.9 per cent to RM6.8 million for Q5 FY23. 

These factors, combined with the aforementioned one-off disposal gain and goodwill impairment, pushed net profit to RM44.5 million in the current quarter from RM2.5 million in the preceding quarter. 

SHB group managing director Maha Palan said the set of results posted showed the technology segment charted healthy and encouraging growth. 

"Furthermore, following our recent restructuring, SHB has transformed itself into a pure technology player focusing on Internet of Things (IoT) solutions," he said in a statement.

SHB had, on May 18, 2023, completed the acquisition of the 36.0 per cent equity interest that it does not own in N'osairis Technology Solutions Sdn Bhd (NTS), which is now a wholly-owned subsidiary. 

Just a day later, on May 19, 2023, SHB also completed the disposal of its 100.0 per cent equity interest in SMR Education Sdn Bhd, which marked the disposal of its education division. 

With these two transactions' completion, SHB is now a pure-play IoT solutions provider. 

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