XHM Holdings' profit plummets 73.1% to $191,000

Blame it on tough competition and weak market sentiments.

Machinery repair and maintenance business XHM Holdings Limited is treading a rough road as net profit ramped down 73.1% to $191,000 in 1QFY17 compared to $710,000 in the previous corresponding quarter.

XHM said group revenue slipped 18.3% YoY to $19.4 million for 1QFY17 as both project and distribution business segments were affected by poor market sentiments. Coupled with intense competition across all segments, gross profit slid lower at $3.9 million for 1QFY17, representing a thinned gross margin of 19.9%.

EBITDA, however, rose 27.6% YoY to $2.1 million for 1QFY17, with EBITDA margin improving to 10.7% for the quarter from 6.8% for 1QFY16.

Considering the headwinds, the group strived to reduce operating costs which inched down 8.6% to S$5.3 million for 1Q2017.