Navigating the Headwinds: A Deep Dive into Metronic Global Berhad’s Q2 2025 Performance
Metronic Global Berhad, a familiar name in Malaysia’s engineering and smart solutions landscape, recently released its unaudited financial results for the second quarter ended 30 April 2025. For many investors, quarterly reports are crucial snapshots of a company’s health and trajectory. This report, while reflecting the challenging operating environment, also sheds light on the company’s strategic resilience amidst ongoing market pressures.
While the company reported a loss for the period, it’s important to understand the context, especially with the change in financial year-end impacting direct year-on-year comparisons. Let’s unpack the numbers and the management’s outlook to understand where Metronic Global stands and what lies ahead.
Core Financial Highlights: A Quarter-on-Quarter Look
Due to a change in the Group’s financial year-end from 30 June 2024 to 31 October 2024, direct comparative financial information for the second quarter ended 30 April 2025 against the same period last year is not available. Shareholders are advised to refer to the financial results for the quarter ended 30 June 2024 for a historical perspective. However, we can analyze the current quarter’s performance against the immediate preceding quarter (Q1 2025, ended 31 January 2025) to understand recent trends.
Revenue and Profitability
Q2 2025 (Ended 30 April 2025)
Revenue: RM1,438,411
Gross Loss: (RM83,515)
Loss Before Tax: (RM2,953,023)
Loss Attributable to Parent: (RM2,968,449)
Basic/Diluted Loss Per Share: (0.19) sen
Q1 2025 (Ended 31 January 2025)
Revenue: RM7,678,023
Gross Loss: (RM157,868)
Loss Before Tax: (RM2,678,041)
Loss Attributable to Parent: (RM2,658,420)
Basic/Diluted Loss Per Share: (0.17) sen
Metronic Global reported a revenue of RM1.44 million for the current quarter, a significant decrease of approximately 81% compared to the RM7.68 million recorded in the immediate preceding quarter. This decline was primarily attributed to lower progress billings for ongoing projects, many of which are nearing their final stages of completion.
Consequently, the Group’s loss before tax widened to RM2.95 million in Q2 2025, a 10% increase from the RM2.68 million loss in Q1 2025. A notable factor contributing to this higher loss was a RM674 thousand loss due to a change in the fair value of investment in quoted shares. The basic loss per share also increased from (0.17) sen to (0.19) sen.
Financial Position: A Snapshot
As at 30 April 2025, the Group’s financial position saw some shifts compared to its last audited financial year-end on 31 October 2024:
| Item | As at 30 April 2025 (RM) | As at 31 October 2024 (RM) | Change (%) |
|---|---|---|---|
| Total Assets | 193,769,686 | 185,696,783 | +4.35% |
| Total Equity | 144,968,012 | 150,604,392 | -3.74% |
| Total Liabilities | 48,801,674 | 35,092,391 | +39.06% |
| Net Asset Per Share | 0.10 | 0.10 | 0% |
Total assets increased by approximately 4.35% to RM193.77 million, while total equity saw a modest decrease of 3.74% to RM144.97 million. A significant change was the increase in total liabilities by over 39% to RM48.80 million. This was largely driven by a substantial increase in borrowings.
Borrowings and Cash Flow
The Group’s total borrowings surged to RM25.3 million as at 30 April 2025, an increase of 117% from RM11.6 million at the previous financial year-end. This jump is primarily due to the drawdown of a RM16.5 million term loan in December 2024. Consequently, the gearing ratio stands at 0.17 times shareholders’ equity.
Despite the increased borrowings, the Group reported a net cash used in operating activities of (RM10.24 million) for the cumulative quarter. However, significant net cash generated from financing activities, largely from the aforementioned borrowings, helped cushion the impact, leading to a net increase in cash and cash equivalents by RM3.16 million for the period.
Segmental Performance
The report indicates that the “Engineering” segment was the sole revenue contributor, generating RM1.44 million in the current quarter and RM9.12 million cumulatively. All business segments, including Engineering, Solar Energy, and Others
