KUALA LUMPUR: Sarawak Cable Bhd (SCB) has registered a net loss of RM14.16 million in the third quarter (Q3) ended February 28, 2023 (FY23), on the back of RM130.54 million.
The company has changed its financial year end from December 31 to May 31, hence, there are no comparative figures available for the preceding year's corresponding period ended February 28, 2022.
According to SCB, the cables and wires segment sales contributed 84.9 per cent of the company's total revenue for the period ended February 28, 2023.
The segment recorded revenue and loss before tax of RM387.1 million and RM23.6 million, respectively, for the period.
"The reduction in the revenue was insufficient to cover the manufacturing and operating expenses incurred by the cables and wires segment led to a segment loss recognised for the reporting period.
"Market demand for products under this segment has shown improvement in view that all economic sectors in Malaysia were reopened in January 2022," it added.
The company said it continues to explore opportunities to increase its market share locally and overseas.
Meanwhile, SCB said the sales of galvanised products and steel structures segment contributed 2.9 per cent of the company's total revenue for the period ended February 28, 2023.
The company's subsidiary, whose sales and services are in this segment, concentrates mainly in East Malaysia.
SCB noted that this segment recorded a loss before tax of RM2.4 million for the period, and the low revenue was insufficient to cover the manufacturing and operating expenses, leading to a segment loss recognised for the reporting period.
"Market demand for products under this segment has started to pick up in view that all economic sectors in Malaysia were reopened in January 2022.
"The company continues to explore opportunities to supply and sell its products and services in Malaysia, especially in Borneo Island," it said.
On prospects, SCB said it is currently undertaking a restructuring program to rehabilitate the financial position and performance of the company, which is expected to be completed by the first half of 2023.
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