Vehicle inspection company and ComfortdelGro subsidiary <a href="https://www.theedgesingapore.com/tags/vicom-limited" target="_blank">Vicom</a> has seen revenue rise in 3QFY2021, but operating profit fall compared to the same period a year before.

3QFY2021 revenue saw a 18% boost y-o-y to $26.28 million from $22.19 million, but operating profit was down 4% y-o-y to $7.94 million.

It should be noted, however, that this was mainly due to lower Covid-19 grants from the government, because if the grants were stripped out, operating profit would have been 21% higher y-o-y.

Vicom received only $484,000 in grants in 3QFY2021, compared to $2.09 million in the same period a year ago.

<hr/>See: <a href="https://www.theedgesingapore.com/capital/results/vicom-reports-160-lower-earnings-62-mil-1q21" target="_blank">Vicom reports 16.0% lower earnings of $6.2 mil for 1Q21</a><hr/>

See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/capital/results/jefferies-keeps-city-developments-buy-following-1qfy2022-update?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Jefferies keeps City Developments at "buy" following 1QFY2022 update</a>

In its business update presentation, Vicom said the higher revenue was mainly from the recovery of the Singapore economy and the lower base after Circuit Breaker in 2Q 2020.

However, the recovery also meant higher business volume, which partly contributed to higher operating costs of $2.8 million more in 3QFY2021.

This was in tandem with lower Covid-19 government reliefs of $1.6 million in the Jobs Support Scheme, waivers and rebates of the foreign worker levy.

As for its 9MFY2021 results, the company recorded a 22% increase in revenue to $75.44 million and a 16% increase in operating profit to $22.88 million.

See also: <a class='gtm_see_also_2_inread' style='text-decoration: underline;' href='/capital/results/unusual-narrows-net-loss-gears-resumption-live-performances?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>UnUsUal narrows net loss, gears up for resumption of 'live' performances</a>

If government grants were stripped out, Vicom would have recorded a 54% jump in operating profit, from $13.79 million in 9MFY2020 to $21.18 million in 9MFY2021.

Separately, Vicom’s cash and cash equivalents for 9MFY2021 stood at $69.66 million, a 25% drop from the $93.19 million as at Dec 2020. This is still a “healthy cash balance to weather prevailing uncertainties,” the company says.

Vicom explained that this was mainly from dividend payments and capex, offset by cash generated from operations.

Capex increased $1.2 million y-o-y in 9MFY2021, mainly from the purchases of machinery & equipment for new capabilities as well as for replacement.

Shares of Vicom closed flat at $2.07 on Nov 9.

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