MANAGEMENT DISCUSSION
AND ANALYSIS
CONTENTS
🔊
FINANCIAL POSITION
TOTAL ASSETS EMPLOYED
As at 31 March 2023, the Group’s total assets increased 33.2% to RM1,607.6 million. The increase of total assets was mainly
to support growth in our businesses and increases in our property, plant and equipment and inventories. The increase in
property, plant and equipment is mainly for our expansion in Thailand.
CAPITAL EMPLOYED AND SOURCE OF FUNDS
The capital employed as at 31 March 2023 was RM928.0 million, an increase of RM185.1 million from RM742.9 million as at
31 March 2022. The increase came mainly from the increase in borrowings, retained earnings from current year’s profit and
increase in translation reserve arising from the weakening of the Malaysian Ringgit against United States Dollar.
CAPITAL EXPENDITURE
The Group continued to invest for its long-term growth, with capital expenditure of RM222.9 million for FY2023.
BANKING FACILITIES
As at 31 March 2023, RM484.4 million or 56.5% of facilities had been utilised.
DEBT RATIO
Net Gearing and Interest Cover Ratios
The Group’s net gearing ratio was 0.56 time as at 31 March 2023 and interest cover ratio was 9 times in FY2023.
The Group’s total borrowings increased to RM479.5 million as at 31 March 2023 (31 March 2022: RM211.0 million). The
increase in borrowings was mainly used to finance the purchase of property, plant and equipment for the expansion in
Thailand and working capital requirement to support the growth in business.
| (RM’ Million) | FY2023 | FY2022 |
|---|---|---|
| Operating activities before changes in working capital | 189.9 | 151.2 |
| Changes in working capital | (193.1) | (178.3) |
| Income tax paid | (29.2) | (25.1) |
| Net cash from operating Activities | (32.4) | (52.2) |
CASH FLOWS
Operating Activities
The Group generated net cash from operating activities before changes in working capital of RM189.9 million in FY2023,
which is used to fund the increase in working capital requirement of RM193.1 million to support the growth in business.
Investing Activities
Net cash used in investing activities of RM222.4 million was used primarily for the investment in property, plant and
equipment of RM222.9 million.
Financing Activities
Net inflow from financing activities of RM224.6 million was mainly attributed to drawdown of bank borrowings of RM268.5
million offset by payment of FY2022 interim dividend of RM18.9 million, payment of lease liabilities of RM9.8 million and
payment of interest of RM15.2 million.
The Group ended the year with cash and cash equivalents of RM21.0 million, a decrease of RM10 million from 31 March
2022.
DIVIDEND
An interim single-tier dividend of 2.50 sen per ordinary
share was declared in May 2023, representing 15% of our
net profit. Based on the average share price for the month
of June 2023 of RM4.66, the dividend per share of 2.50 sen
translates to a dividend yield of 0.54%.
