PETALING JAYA: Dagang Nexchange Bhd’s (DNex) net profits fell by 47.8% to RM6.2 million for its first quarter ended March 31, compared to RM11.93 million reported in the same quarter of the previous year, due to lower share of results of an associate, lower recognition of other income and the completion of submarine cable installation and repair contract in 2019.
Revenue for the quarter fell 7.7% to RM63.65 million against RM68.95 million reported previously.
According to its Bursa disclosure, DNex acknowledged that the Covid-19 pandemic has undeniably had an adverse impact globally but it believes that such impact to the group is manageable as its projects are ongoing and are expected to carry it through 2020.
The group’s executive deputy chairman, Datuk Samsul Husin commented that its satisfactory results demonstrate its ability to withstand these challenges.
“Selected government projects continue to operate as usual during the movement control order as part of essential services albeit with extra precautions for workers and travel,“ he said in a press release.
Samsul highlighted that switching to full digitalisationm or at least increasing the level of digitalisation, is now an absolute necessity for businesses and organisations.
He believes global spending in IT and digital technology will not slowdown but potentially increase given the current operating landscape, which augurs well for technology solution providers such as DNeX.
“With this in mind, we are aggressively pursuing opportunities to help narrow the digitalisation gaps across all sectors.”
