Trio-Tech International (TRT) has reported a 16.99 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $0.30 million, or $0.08 a share in the quarter, compared with $0.26 million, or $0.08 a share for the same period last year.
Revenue during the quarter grew 13.13 percent to $8.97 million from $7.93 million in the previous year period. Gross margin for the quarter contracted 118 basis points over the previous year period to 26.28 percent. Total expenses were 95.80 percent of quarterly revenues, down from 96.23 percent for the same period last year. This has led to an improvement of 43 basis points in operating margin to 4.20 percent.
Operating income for the quarter was $0.38 million, compared with $0.30 million in the previous year period.
S.W. Yong, Trio-Tech's chief executive officer, said, "Revenue increased for all of Trio-Tech's businesses in the first quarter of fiscal 2017 compared to the first quarter of fiscal 2016, highlighted by double-digit increases in our manufacturing and distribution segments and near 10% growth in our semiconductor testing services segment. This growth was driven primarily by increased demand from major customers in Asia, which is an encouraging sign for the future." "Nevertheless, operating income, a critical metric we use to monitor the Company's financial performance, increased 26.1% compared to last year's first quarter, and net income increased 17.0%, as operating expenses remained under tight control," he added. "The new fiscal year is off to a good start, as our increasingly efficient operations allowed us to translate solid revenue growth into an even larger increase in profit. We remain focused on delivering quality products and services to all of our customers." Yong concluded.
Working capital increases
Trio-Tech International has recorded an increase in the working capital over the last year. It stood at $6.72 million as at Sep. 30, 2016, up 24.72 percent or $1.33 million from $5.39 million on Sep. 30, 2015. Current ratio was at 1.81 as on Sep. 30, 2016, up from 1.65 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 29 days for the quarter from 32 days for the last year period. Days sales outstanding went down to 43 days for the quarter compared with 46 days for the same period last year.
Days inventory outstanding has decreased to 8 days for the quarter compared with 10 days for the previous year period. At the same time, days payable outstanding was almost stable at 23 days for the quarter, when compared with the previous year period.
Debt comes down
Trio-Tech International has recorded a decline in total debt over the last one year. It stood at $4.11 million as on Sep. 30, 2016, down 10.37 percent or $0.48 million from $4.59 million on Sep. 30, 2015. Total debt was 13.04 percent of total assets as on Sep. 30, 2016, compared with 15.05 percent on Sep. 30, 2015. Debt to equity ratio was at 0.20 as on Sep. 30, 2016, down from 0.23 as on Sep. 30, 2015. Interest coverage ratio improved to 6.50 for the quarter from 5.64 for the same period last year.
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