SENAI, MALAYSIA – V.S. Industry Berhad reported revenue of RM1.15 billion ($246.9 million) for the first quarter of its fiscal year, a decrease of 10.9% compared to the same quarter last year.

The company said the reduced earnings for the quarter was due to lower orders from key customers, which in turn affected the overall utilization rate of production capacity.

"While global interest rate hikes have slowed down, we expect the business environment to remain challenging," the company said. The economic landscape continues to exert pressure on operational costs following increases in labour, utilities, and financing expenses. In this regard, management continues to adopt prudence in ensuring a lean and efficient operating structure to mitigate the impact of heightened costs on profitability.

"Furthermore, our operations are supported by our lean balance sheet with low net gearing and healthy cashflow which would strengthen our agility to navigate any unforeseen issues. With regards to external demand, consumer spending shows signs of cooling due to the sustained environment of high interest rates and this may potentially affect demand for our key customers’ products. On a positive note, the planned launching of several new models by certain customers of ours should serve to sustain market interest in the current financial year."

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