KUALA LUMPUR: Kronologi Asia Bhd expects cautionary spending by customers and cost cuts in most regions to tamper its revenue growth expectations in fiscal year 2024.
The company anticipates flat to single-digit percentage revenue growth in fiscal year 2024 compared with fiscal year 2023.
"We entered fiscal year 2024 in an environment that seemed to be stabilising. In fact, from a demand perspective, As-A-Service and project revenue performed well throughout fiscal year 2023 despite a challenging macroeconomic environment and a resultant customers spending caution"," said Group CEO Edmond Tay.
"We remain focused on delivering positive earnings and increasing value for our shareholders", he added.
For its third quarter ended Oct 31, 2023 (Q3FY24), the company's net profit fell 86.1 per cent year-on-year (YoY) to RM1.01 million from RM7.25 million a year ago due to higher depreciation of property, plant and equipment (PPE), and partly from operating costs such as office rental and staff cost which included accrued staff commissions.
The PPE primarily supports the As A-Service business segment and for future-proofing our suite of customers' solutions.
Revenue for the period dipped 22.7 per cent YoY to RM67.75 million versus RM87.65 million in the corresponding quarter last year.
The company noted that higher tax expenses of RM4.09 million or 43 per cent was due to deferred tax liability arising from timing differences in utilisation of the capital allowance and depreciation of property, plant and equipment recognised over the years.
For the cumulative nine month period, its net profit fell 47.5 per cent to RM6.6 million from RM12.57 million. Revenue however edged higher to RM210.38 million versus RM208.11 million a year ago.
By product category, the Enterprise Data Management Infrastructure Technology segment remained the primary contributor to the company's revenue, amounting to RM156.153 million or 74.2 per cent of total revenue, with EDM As-A-Service making up the balance.