Industrial automation firm ISDN Holdings has reported earnings of $5.6 million and $15.1 million for the 2HFY2020 and FY2020 ended December, representing a 271.4% and 114.8% y-o-y increase from the previous year’s earnings.

The results came in line with the company’s guidance on Feb 19, who expected earnings to grow by over 80% for the FY2020.

Earnings per share (EPS) for the 2HFY2020 and FY2020 stood at 1.28 cents and 3.51 cents on a fully diluted basis.

Revenue for the 2HFY2020 rose 35.2% y-o-y to $194.7 million while FY2020 revenue rose 24.4% y-o-y to $361.9 million.

The overall increase was due to broad-based demand in 2020 across all markets for its industrial automation solutions in China and Southeast Asia, including Singapore, Malaysia and Vietnam.

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“The group believes the strength in demand is driven by both the multi-year adoption of Industry 4.0 automation throughout Asia, and the reconfiguration of global industrial supply chains favouring Asia-based suppliers,” it says in a March 1 statement.

The group says its diversified strategy across customers, industries and geographies yielded “resilience and growth” in 2020.

In line with the higher revenues, 2HFY2020 and FY2020 gross profit increased 35.5% and 23.4% y-o-y to $54.2 million and $95.6 million respectively.

Gross profit margin (GPM) remained stable declining 0.2 percentage points to 26.4% in FY2020.

However, excluding lower margin profits from the Hydropower Unit which are under service concession agreement, GPM for the group would have increased to 27.8% for FY2020.

As at end-December, cash and cash equivalents stood at $51.9 million.

A final dividend of 0.8 cents per share has been declared for the FY2020, compared to the 0.4 cents per share in FY2019.

In addition to its growing core market in industrial automation, ISDN says it is continuing its progress in diversified growth investments in clean economy segments.

The group’s investment in environmentally-friendly industrial disinfectants, led by its flagship certified Waterliq product, continues to gain commercial traction as industries in Southeast Asia adapt to new post-pandemic health and safety protocols, it says.

Furthermore, ISDN also expects to progress its clean energy hydropower business towards commercialisation in 2021.

“We are grateful to our shareholders, customers and staff for supporting us in a transformational year for ISDN. Despite almost 2 months of shutdowns and disruption across Asia, our dedicated employees were able to operate with agility and drive both revenue and productivity growth for the group,” says managing director and president Teo Cher Koon.

“Our core business is well-positioned with Asia’s multi-year Industry 4.0 journey, assisted by the positive reconfiguration of global supply chains favouring Asia vendors. Our diversified investments in clean economy segments show good progress and the group continues its multi-year initiatives to grow productivity as the business scales,” he adds.

Shares in ISDN closed 1.5 cents lower or 2.6% down at 56 cents on March 1.