IFCA MSC 3Q net profit soars 406%

By Chester Tay 

KUALA LUMPUR (Nov 5): Integrated software provider IFCA MSC Bhd  saw its net profit jump more than five-fold to RM8.53 million for the third financial quarter ended Sept 30, 2014 (3QFY14) from RM1.56 million a year ago, contributed by all business units, notably its Goods and Services Tax (GST) compliance upgrade business.

Revenue for 3QFY14 rose 68.7% to RM25.75 million from RM15.25 million.

For the nine months period, its net profit increased more than seven-fold to RM11.95 million from RM1.64 million a year ago, while revenue was up 53% to RM58.06 million from RM38 million in 9MFY13.

“Overseas business (for 9MFY14) grew 63.6% to RM16.4 million, while Malaysia grew 49% to RM41.6 million (from the year-ago period),” IFCA MSC said in a filing with Bursa Malaysia today.

IFCA MSC said its GST compliance upgrade business accounted for 14% or RM8.4 million of total revenue.

“This is a reflection on the GST implementations are just beginning to roll out. The rollout speed will accelerate, just as orders will continue to grow rapidly,” it added.

The remaining 86% of revenue was derived from its non-GST related business, of which major drivers included a shopping mall solutions for klia2 and human resource solutions for a local bank and several large enterprises.

IFCA MSC was picked as one of TheEdge Research’s Stocks with Momentum on Oct 24.

“With the GST-implementation date drawing near, companies would need to upgrade or purchase GST-accredited software to adapt to the new regulation,” The Edge Research said.

IFCA shares closed 2.1% lower at 69.5 sen yesterday, giving it a market capitalisation of RM317.96 million. Its warrants fell 0.8% to settle at 60 sen.