Scicom (SCICOM) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 was RM58.9 million, down 5% year-over-year due to non-renewal of certain BPO contracts as clients brought business in-house.

• Profit before tax increased 1% to RM11.4 million, driven by higher transactional volume from higher-margin projects.

• Net profit rose 4% year-over-year to RM7.8 million, with basic EPS at 2.20 sen, up from 2.12 sen.

• The company is focusing on organic growth, sales pipeline conversion, and AI integration to drive future growth.

Financial highlights

• Revenue declined 5% year-over-year to RM58.9 million; BPO segment was the main contributor.

• Operating profit increased 2% to RM11.8 million; net profit up 4% to RM7.8 million.

• Operating expenses fell 9% to RM42.3 million; depreciation and amortisation rose 6%.

• Cash and bank balances at period end were RM31.8 million, up from RM21.8 million at the previous year-end.

• Net cash generated from operating activities was RM13.1 million, down from RM17.8 million a year ago.

Outlook and guidance

• Management expects growth from current clients and new business in the sales pipeline.

• AI technology integration is a strategic focus to enhance service delivery and competitiveness.

• The company aims to diversify offerings and strengthen customer loyalty for FY2025.