Aztech Global has reported earnings of $13.2 million for the 1QFY2021 ended March, 22 times higher than the $0.6 million recorded for 1QFY2020.

This translates to earnings per share (EPS) of 2.01 cents, up from 0.09 cents in the1QFY2020.

The earnings correspond to higher revenue for the period, which grew 211% y-o-y to $115.9 million from $37.3 million previously. The higher revenue was driven mainly by strong production volume and shipment of IoT and Data-communication products to customers that boosted revenue from this segment to $106.3 million.

In its 1QFY2021 business updated dated April 21, Aztech attributes the stronger y-o-y earnings to a shorter production shut down period for the Chinese New Year holidays compared to last year to meet increased production demand. 

Improved productivity and efficiency also contributed to the higher earnings, with net profit margin increasing to 11.4% for the 1QFY2021 from 1.6% the previous year.

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The group’s cash and bank balances stood at $261.3 million as at March 31. It also recorded a net cash position of $240.1 million including net proceeds of $188.6 million raised from its IPO.

Looking ahead, the group believes the global shortage of components is unlikely to abate in the next 12 months, though it notes strong relationships between its customers their suppliers as well as Aztech’s sufficient cash reserves have enabled it to secure required components.

Aztech’s outstanding order book stood at $489 million as of the 1QFY2021, with the majority of orders expected to be completed in FY2021.

Aztech chairman and CEO Michael Mun says the group is “cautiously optimistic” on its performance in 2021, given its strong order book and measures to mitigate the impact of the pandemic.

Shares in Aztech closed 5 cents or 3.76% higher at $1.38.