Scicom (SCICOM) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 declined 16% year-over-year to RM45.4 million, mainly due to non-renewal of contracts by long-term BPO clients who brought operations in-house.

• Profit before tax for Q3 2025 dropped 38% year-over-year to RM5.0 million, impacted by lower revenue and a foreign exchange loss.

• Net profit for Q3 2025 was RM4.1 million, down 32% year-over-year; EPS for the quarter was 1.06 sen, a 37% decrease.

• New BPO and Gov-tech contracts secured, with commencement expected in Q1 FY2026, anticipated to drive growth in FY2026.

Financial highlights

• Cumulative 9-month revenue fell 15% year-over-year to RM152.1 million; net profit for the period was RM16.5 million, down 21%.

• Operating profit for the 9-month period was RM21.8 million, a 24% decrease year-over-year.

• Cash and bank balances at 31 March 2025 stood at RM22.1 million; net cash from operating activities for the period was RM30.2 million.

• Total equity at period end was RM115.0 million; no borrowings or debt securities outstanding.

• Interim dividends totaling 4.5 sen per share (RM16.0 million) paid during the period; third interim dividend of 1.0 sen declared.

Outlook and guidance

• No growth in profitability expected for FY2025 due to timing of new project commencements.

• Significant revenue and profit growth anticipated in FY2026 from new BPO and Gov-tech contracts.