ISDN Holdings has reported a net profit of $2.29 million for the 3QFY2025 ended Sept 30, a reversal from the net loss reported in the same period a year ago.
For the 9MFY2025, net profit came in 2% y-o-y lower at $3.58 million.
The group says that large non-cash, and non-current revaluations of long-term contracts in ISDN’s clean energy business impacted core profits significantly. These revaluations are accounting foreign-exchange losses arising from the strengthening Singapore dollar against trade currencies in the clean energy business.
Instead, the group considers core profits as its key underlying measure of business performance. For the third quarter, core profit grew 144.4% y-o-y to $2.1 million, and 57.5% y-o-y for the nine months ended Sept to $6.6 million.
Revenue for 3QFY2025 and 9MFY2025 came in 21.7% and 21.9% y-o-y higher at $106.9 million and $319.8 million respectively.
ISDN’s automation business, which accounts for 86.5% of the group’s revenue, grew 8.6% y-o-y in 9MFY2025. The group says it continues to benefit from the multi-year industrial automation growth in Asia as manufacturing economies in China and Southeast Asia continue to upgrade industrial and manufacturing automation to advance competitiveness, among other reasons.
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Its hydropower business which accounts for 13.5% of group revenue increased to $43.1 million in 9MFY2025 due to recognition of construction revenue from the fourth and fifth mini-hydropower plant.
The group notes that the market for industrial automation has good multi-year tailwinds. It continues to grow its market access by growing its technology offerings from components to equipment and full cloud/AI solutions; establishing presence in Malaysia and Taiwan; and growing its vertical integration.
ISDN has two additional mini-hydropower plants scheduled for completion by 2026.
Shares in ISDN closed 0.5 cents lower or 1.22% down at 40.5 cents on Nov 18.
