Steel supplier BRC Asia rakes in higher profit from improving margins

Steel supplier BRC Asia has reported a 68 per cent jump in third quarter net profit to $8.9 million.

Revenue for the three months to June 30 was up a marginal 2 per cent at $104.2 million.

This was mainly due to higher sales volume which was in tandem with buoyant construction activities in Singapore.

Gross profit increased by 46 per cent from S$10.7 million to S$15.6 million, with profit margin improving from 10.5 per cent to 15 per cent.

This was due to lower steel costs as the average cost of inventory was lowered by cheaper purchases due to declining steel costs while sales orders were secured at better prices.

Earnings per share grew to 1.029 cents from 0.641 cent previously while net asset value per share increased to 15.19 cents compared to 13.69 cents as at Sept 30.

BRC expects local demand for reinforcing steel to remained strong for the rest of the year.