SIA Engineering Group Engineering Group (SIAEC) reported revenue of $261.9 million in the first quarter of FY2023-24, an increase of 52.7% over same time last year. The Group’s expenditure also increased but at a slightly lower rate of 49.0%, to $261.5 million, mainly due to higher manpower costs and material costs, as well as the absence of government wage support.
The Group recorded an operating profit of $0.4 million for the quarter, an improvement of $4.4 million year-on-year marking the first quarter of profit at the operating level since the onset of the pandemic. Excluding the impact of wage support recorded in the same quarter last year, operating performance improved by $13.0 million.
The Group’s share of profits of associated and joint venture companies was $21.9 million, with $21.2 million coming from the engine and component segment and $0.7 million from the airframe and line maintenance segment. Share of profits increased $5.5 million (+33.5%) year-on-year due to improvement in operating performance from the increase in business volume.
The Group recorded a net profit of $27.0 million for the quarter ended June 30, 2023, which more than doubled year-on-year.
As at June 30, 2023, equity attributable to owners of the parent was $1,705.6 million, an increase of $39.5 million (+2.4%) from 31 March 2023, mainly due to profits earned in the first quarter of the financial year. Group’s total assets stood at $2,050.7 million as at June 30, 2023, an increase of $67.5 million (+3.4%) from March 31, 2023.
During the quarter, the number of flights handled the SIA Engineering’s line maintenance unit in Singapore recovered to 84% of pre-pandemic volume, an increase of 69% year-on-year and 11% higher than last quarter.
In May 2023, SIA Engineering increased its shareholding in JAMCO Aero Design & Engineering Private Limited (“JADE”) from 45% to 55%.
Going ahead, the Group anticipates strong global air travel demand but predicts a slow recovery in in MRO demand than the rate of recovery over the past year as airlines manage various constraints to return fully to pre-pandemic flight levels.