KUALA LUMPUR (June 22): Kronologi Asia Bhd's net profit for the first quarter ended April 30, 2022 (1QFY23) slumped 45% to RM2.21 million from RM4.02 million a year earlier on increased operational costs and higher tax.

In a bourse filing on Wednesday (June 22), the firm said revenue for the quarter dipped 2.53% to RM57.33 million from RM58.82 million previously, as stringent lockdowns experienced in China during the quarter resulted in commercial and production delays.

Earnings per share fell to 0.31 sen from 0.77 sen.

Kronologi did not declare any dividend.

Reviewing its performance, the company said although not necessarily cyclical, the initial period of each year has a slower momentum than the final quarter of the year as typically most customers will fully utilise their financial year budget during the final quarter.

On its prospects, Kronologi said the business challenges have increased as Malaysia recovers from the Covid-19 pandemic.

It said lengthening supply chain disruptions which together with macroeconomic and geopolitical issues have led to endemic inflation and lower business confidence.

The firm said this has resulted in a slowdown of technology investments by some of its clients.

"Despite project deferrals, we are pleased that our group's revenue during the quarter has been largely maintained.

"Our healthy balance sheet and cash reserves provide us with the ability to capture opportunities as they arise.

"Commensurate with the current business environment and how it develops, the management continues to strive towards achieving reasonable growth for the rest of this financial year," it said.

In a separate statement, Kronologi chief executive officer Edmond Tay said in some ways, business challenges have increased as Malaysia recovers from the Covid-19 pandemic.

Tay said lengthening supply chain disruptions, which together with macroeconomic and geopolitical issues, have led to endemic inflation and lower business confidence.

He said this has resulted in a slowdown of technology investments by some of the company's clients.

"Despite project deferrals, we are pleased that our group revenue during the quarter has been largely maintained.

"Our healthy balance sheet and cash reserves provide us with the ability to capture opportunities as they arise," he said.

At the midday break on Wednesday, Kronologi shares shed 0.5 sen to 50 sen, valuing it at RM359.17 million.