ISDN Holdings has reported earnings of $1.3 million, down 66% y-o-y for the 1HFY2025 ended June 30.
Revenue for 1HFY2025 came in 22% y-o-y higher at $212.9 million, and gross profit increased 13.8% y-o-y to $50.5 million.
The group says that the decline in earnings is primarily due to unrealised foreign exchange losses in its energy business. It incurred $5 million unrealised, non-cash foreign exchange revaluation losses in 1HFY2025 as the US dollar weakened during the period.
The group says that excluding all unrealised foreign exchange losses/gains and non-recurring items, it would have achieved a 35.1% y-o-y growth in earnings for the 1HFY2025.
The group’s revenue growth was driven by strong performance across all five strategic business segments in both China and Southeast Asia.
Its China industrial automation business which accounts for 64.3% of revenue grew 3.7% y-o-y as demand for solutions in China continues to recover. This was dampened by the strengthening Singapore dollar during the 1HFY2025.
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Meanwhile, its Southeast Asia industrial automation business which accounts for 20.4% of its revenue rose 15.1% y-o-y. ISDN says that it is gaining market share in the region as the global supply chain diversifies outside of China.
The group’s hydropower business which makes up 15.3% of revenue grew to $32.5 million
Gross profit grew 13.8% y-o-y in 1HFY2025, reflecting overall business growth for the group, however gross profit margin declined slightly by 1.7% percentage points (ppts) y-o-y, mainly due to recognition of construction income in ISDN’s renewable energy business during the construction phase which carries lower margins.
Shares in ISDN Holdings closed flat at 38.5 cents on Aug 11.
