BRC Asia Reports 13.9% Rise in Profit After Tax
STEEL fabricator BRC Asia on Thursday (Feb 6) announced its profit after tax rose 13.9 per cent to S$19.5 million for the quarter ended Dec 31, 2024, compared to S$17.1 million in the corresponding year-ago period.
Revenue Falls Despite Profit Growth
This is despite revenue falling 12.4% year on year to S$349.8 million, from S$399.2 million.
Gross Profit and Cash Reserves
Gross profit for the three months was S$28.7 million, sliding 19 per cent from S$35.4 million in Q1 FY2024.
As at Dec 31, 2024, BRC Asia’s cash and cash equivalents stood at S$171.7 million, compared to S$180.7 million in the year-ago period.
Sales Order Book and Outlook
The group said that its sales order book stood at around S$1.5 billion as at end-2024. The duration of the projects in its order book is up to five years and may be subject to changes, it added.
For its outlook, BRC Asia said: “The strong forecasts for construction demand in Singapore bode well for the local reinforcing steel industry in the short to medium term.”
Share Price Movement
Shares of BRC Asia rose 1.1 per cent or S$0.03 to S$2.87, before the update.
Conclusion
BRC Asia’s profit growth despite a decline in revenue is a positive sign for the company. The strong sales order book and cash reserves also provide a solid foundation for future growth. The company’s outlook is optimistic, citing strong forecasts for construction demand in Singapore.
FAQs
Q: What was BRC Asia’s profit after tax for the quarter ended Dec 31, 2024?
A: S$19.5 million, a 13.9% increase from the corresponding year-ago period.
Q: What was the revenue for the quarter ended Dec 31, 2024?
A: S$349.8 million, a 12.4% decline from the corresponding year-ago period.
Q: What is the duration of the projects in BRC Asia’s sales order book?
A: Up to five years, and may be subject to changes.
Q: What is BRC Asia’s outlook for the local reinforcing steel industry?
A: The company believes that the strong forecasts for construction demand in Singapore bode well for the industry in the short to medium term.
