ELK-Desa Resources Bhd, a non-bank lender specializing in the used-car segment, has announced a significant increase in revenue for the fourth quarter ended March 31, 2024. Despite the challenging economic climate, the company recorded a 16% surge in revenue, reaching RM46.63 million compared to RM40.30 million in the same quarter the previous year. This boost in revenue can be attributed to higher contributions from both its hire purchase and furniture segments.
In addition to the revenue growth, ELK-Desa Resources Bhd experienced a 32% increase in profit before tax (PBT) for the quarter, amounting to RM13.10 million, up from RM9.95 million. The rise in PBT was primarily driven by a higher contribution from its hire purchase financing segment.
While the company achieved cumulative revenue growth of 8% for the fiscal year, reaching RM167.78 million compared to RM155.24 million in the previous year, PBT declined by 23% to RM49.04 million from RM63.31 million. This decline can be attributed to the absence of a reversal of impairment allowance for the hire purchase segment that occurred in the first quarter of the previous corresponding year.
Despite these challenges, ELK-Desa Resources Bhd remains optimistic about the future. The company aims to sustain its growth momentum in FY2025 by moderately expanding its hire purchase receivables. Additionally, it plans to focus on driving down the impaired loans ratio by proactively engaging customers and maintaining its recovery efforts.
ELK-Desa Resources Bhd also plans to strengthen the presence of its furniture segment in Sabah and Sarawak. To achieve this, the company intends to enhance its logistic arrangements, positioning itself as a trusted partner in delivering quality and value-for-money furniture products. This strategic approach aims to give ELK-Desa Resources Bhd a competitive edge in the markets of East Malaysia.
To reward its shareholders, the board of directors has declared a second single-tier interim dividend of 3 sen per share in respect of the financial year ended March 31, 2024. The dividend payout ratio of about 62% of the net profit exceeds the board’s dividend policy of 60%. However, no final dividend will be recommended for the financial year ended March 31, 2024.
ELK-Desa Resources Bhd remains optimistic about its future growth prospects, as it continues to adapt and expand its business operations in line with changing market dynamics.
ELK-Desa Resources Bhd Announces Revenue Increase in Fourth Quarter of 2024
– Non-bank lender ELK-Desa Resources Bhd has reported a 16% surge in revenue for the fourth quarter ended March 31, 2024.
– The company recorded revenue of RM46.63 million compared to RM40.30 million in the same quarter the previous year.
– Higher contributions from the hire purchase and furniture segments were the main drivers of this revenue growth.
– ELK-Desa Resources Bhd also experienced a 32% increase in profit before tax (PBT) for the quarter, reaching RM13.10 million, up from RM9.95 million.
– The rise in PBT was primarily due to a higher contribution from the hire purchase financing segment.
– Cumulative revenue for the fiscal year grew by 8%, amounting to RM167.78 million compared to RM155.24 million in the previous year.
– However, PBT declined by 23% to RM49.04 million from RM63.31 million for the same period.
– The decline in PBT was attributed to the absence of a reversal of impairment allowance for the hire purchase segment that occurred in the previous corresponding year.
Key Terms:
1. Hire Purchase: A type of financial arrangement in which a customer agrees to buy an asset by paying an initial deposit and then making regular installment payments over a fixed period.
2. Profit Before Tax (PBT): An indicator of a company’s profitability that calculates the profit earned before taxes are deducted.
3. Impairment Allowance: An accounting adjustment made to reflect the potential reduction in the value of an asset, often due to impairment or decline in value.
4. Cumulative Revenue: The total revenue generated over a specified time period, often referred to as the sum of revenue for multiple periods.
Related Links:
– ELK-Desa Resources Bhd Official Website