Power Transmission Group Records Best Ever Financial Year
PESTECH International Berhad saw its revenue increase 11.5% to RM889.4 million for the 12 months ended 30 June 2021 compared to RM797.7 million for previous corresponding year while profit after tax climbed to RM102.8 million a record performance for the company.
A net profit surpassing the RM100 million mark is a new milestone for PESTECH which is also a 59.4% year on year jump. “This is our best year on record.” said CEO Group CEO Paul Lim. Despite the lockdowns and border controls which were in place in countries the company operates, due to the nature of business which involves power transmission the group remained in operations and did not effect its core business in building and/or maintaining power network and railway systems.
The fourth quarter was also stellar with result of RM41.6 million after tax profit on the back of RM231.9 million in revenue. 49% of PESTECH’s revenue were generated overseas, mainly from power substation and transmission assets with recurring concession fee payments secured by long term agreements. One such project is the Independent Power Transmission (IPT) project in Cambodia which is in effect till 2043.
In Malaysia, the company has a strong foothold in the rail electrification and signalling market this segment contributed RM89.9 million or 38.8% of revenue for the current quarter. Whilst the MRT Sungai Buloh – Serdang – Putrajaya (SSP) Line project in the capital city is close to completion, the Gemas – Johor Bahru Double Track project down south is in full swing. “Within Q4, in May 2021, PESTECH secured a RM65 million award for Rapid Transit System (RTS) Link traction power supply from RTS Operation Pte Ltd, a joint venture between Prasarana Malaysia Berhad and SMRT Corporation Ltd.
Focus is ASEAN, PESTECH aims to establish itself in the region as countries start rolling out economy stimulus for post Covid recovery, investments into infrastructure projects including power network and railway systems will accelerate ahead. Opportunities for growth is immense with new ventures related to digital services and electric mobility that possess enormous potential to drive long term transformation. Verticals of smart grid, renewable energy and electric vehicles (EV) charging will grow in synergy and pave the way towards something big in the near future.