IPCO's net profit sinks 97.6% to $34,000

Blame it on lower sales.

Singapore-listed developer IPCO Group reported a whopping 97.6% decline in its net profit for the quarter ending in July mainly due to lower sales.

The group's sale of goods dipped 43.6% from $7 million last year to $3.9 million in the said quarter. This brought revenue crashing 32% to $9.98 million.

The group's total net profit spiraled down from $1.4 million last year to $34,000 in the quarter mentioned.

The group's ESA Electronics Pte Ltd., which operates in the semiconductor industry, recorded a 43.6% decrease in turnover of $3.9 million as compared to $7 million last year.

"The decrease was mainly due to lower demand of burn-in boards by semiconductor manufacturers in the current quarter," the group explained.

Meanwhile, sales from installation, connection and delivery of natural gas from Excellent Empire fell 7.6% from $6.5 million to $6 million.

"This was mainly due to decrease in installations of new households, commercial and industrial users, resulting in lower connection fees," IPCO stated.