KUALA LUMPUR (Nov 24): Melaka-based automotive light-emitting diode (LED) manufacturer D&O Green Technologies Bhd posted a 15.8% increase in its net profit for the third quarter ended Sept 30, 2023 (3QFY2023) to RM18.25 million from RM15.75 million a year earlier on higher revenue and lower net other expense incurred mainly attributable to lower loss on foreign exchange and derivatives.

As a result, earnings per share came in higher at 1.47 sen for 3QFY2023 compared with 1.27 sen for 3QFY2022.

Quarterly revenue improved 7.8% to RM271.95 million from RM252.16 million in 3QFY2022.

"The overall car sales are gradually showing signs of improvement and moving towards a positive trend," D&O said in a filing with Bursa Malaysia on Friday.

Notably, D&O recorded its three-year low quarterly net profit in 2QFY2023 at RM716,000.

However, the group's net profit for the nine-month period ended Sept 30, 2023 (9MFY2023) fell 67.8% to RM19.82 million from RM61.59 million a year earlier, mainly due to a combination of lower revenue and increased finance and distribution expenses.

"Nevertheless, this impact was partially mitigated by decreased net other expenses as the group successfully reduced foreign exchange and derivatives losses significantly through its currency rebalancing strategy," D&O said.

Revenue for 9MFY2023 slipped 4% to RM706.64 million from RM735.83 million a year ago, primarily attributed to inventory overhang and subdued consumer sentiment in China in 2QFY2023.

On prospects, D&O said its performance is recovering in line with market trends based on existing customers' orders.

"With its ready capacity, D&O is well-positioned to capitalise on the expected recovery in global car sales. Barring any unforeseen circumstances, management remains optimistic of year-on-year revenue growth," it added.

D&O shares closed unchanged at RM3.55 on Friday, giving it a market capitalisation of RM4.4 billion.