I have Leon FUAT.
Our Group achieved revenue of RM177.98 million for the current quarter, which was higher than the immediate preceding quarter’s revenue by 54.6% or RM62.83 million. The increase in revenue was mainly due to the increase in revenue for our trading and processing of steel products, which recorded higher revenue by 54.2% or RM30.49 million and 55.5% or RM32.46 million respectively. The increase in revenue for trading and processing of steel products was mainly due to higher tonnage sales by 65.4% and 70.3% respectively, partially reduced by the effect of lower average selling price which had decreased by 6.8% and 8.7% respectively. For the current quarter, our gross profit increased by 8.5% or RM1.95 million, from RM23.03 million for the immediate preceding quarter to RM24.98 million for the current quarter, which was mainly due to the increase in revenue by RM62.83 million, from RM115.15 million for the immediate preceding quarter to RM177.98 million for the current quarter, largely offset by lower overall gross profit margin from 20.0% for the immediate preceding quarter to 14.0% for the current quarter, resulted from lower overall average selling price by 7.6% while the overall average cost for input materials had increased by 1.7%. The other income of RM3.65 million for the current quarter as compared to RM22.07 million for the immediate preceding quarter, lower by RM18.42 million, mainly due to the absence of gain and compensation for injurious affection derived from the compulsory acquisition of the affected land and buildings, amounting to approximately RM21.68 million which had been recognised in the immediate preceding quarter, partly offset by the recognition of gain on bargain purchase for RM2.70 million, arising from acquisition of PCP as the Group share of fair value of identifiable net assets acquired on the acquisition date is more than its purchase consideration.
Our operating costs decreased by approximately RM0.70 million, from RM9.18 million for the immediate preceding quarter to RM8.48 million for the current quarter, mainly caused by the decrease in administrative costs by RM0.83 million, resulted from the absence of consultancy fees related to the compulsory acquisition of the affected land and buildings, amounting to approximately of RM0.92 million which had been accrued in the immediate preceding quarter. The finance costs for the current quarter was RM2.78 million, increased by RM0.40 million or 16.8% as compared to RM2.38 million for the immediate preceding quarter. This was mainly due to higher utilisation of trade financing and Islamic financing facilities where their interest expenses increased by RM0.15 million and RM0.25 million respectively. Based on the foregoing factors, our profit before tax decreased by 48.2% or approximately RM16.16 million, from RM33.53 million for the immediate preceding quarter to RM17.37 million for the current quarter.
B3. Commentary on Prospects
The results achieved by our Group's business operations (excluding the exceptional gain from compulsory acquisition of the Group’s land and bargain purchase of PCP) for the first three (3) quarters of the current financial year have been satisfactorily and to a certain extent, exceeded our expectation. This was mainly contributed by the continuous rise in steel prices set forth by China's steel producers arising from insufficient supply to meet demand following China's policy to downsize the country’s steel production capacity to contain pollution. In view of the results achieved so far, our Board is optimistic that the Group's results for the remaining quarter of the current financial year will continue to be favorable