Higher profit margin lifts Silverlake Axis' earnings by 21% to $77 million
Silverlake Axis, which provides digital services to major organisations in banking and financial services, has posted a 21 per cent rise in net profit despite registering flat revenue.
Net profit for the year ended June 20 rose to RM196 million (S$76.9 million) from RM162.3 million.
Lower contribution from software project services and sale of software and hardware products was partially offset by higher contribution from higher margin software licensing, maintenance and enhancement services as well as new contribution from insurance processing generated by the newly-acquired Merimen Group.
The group's gross profit margin of 64 per cent was 10 percentage points higher than last year due to a change in revenue mix, with a higher proportion of revenue recorded from higher margin activities such as software licensing and maintenance and enhancement services.