Serba Dinamik Annual Report 2018

68 ANNUAL REPORT 2018 SERBA DINAMIK HOLDINGS BERHAD F I N A N C I A L P E R F O R M A N C E 5-YEAR PERFORMANCE REVIEW The group recorded a revenue of RM3.28 billion for FYE2018 showing a Year on Year (“YoY”) growth of 20.60% and five(5) year Cumalative Annual Growth Rate ("CAGR") of 44.37% for the period between FYE2014 and FYE2018. This growth is mainly attributable to increased tendering activities both locally and overseas, an increase in O&M activity in the Middle East as well as revenue recognition from EPCC contracts secured through our asset ownership model. The company further recorded revenue from two additional countries being Tanzania and Kazakhstan. Serba Dinamik’s gross profit from operations improved from RM483.93 million in FYE2017 to RM582.32 million in FYE2018 which translates into a 20.33% growth. This growth is in line with the revenue growth of 20.60% recorded OUR OPERATIONS Serba Dinamik Holdings Berhad and its subsidiaries a an energy engineering group providing engineering solutions during the year. Gross profit margin remained stable at 17.74% in FYE2018 against 17.78% last year. Over the past five(5) years, the group's gross profit grew by 51.24% on a CAGR basis. Our operations and maintenance segment was the main profit contributor making up 90.04% of the gross profit for the year while the EPCC segment and other supporting services segment provided 9.60% and 0.36% of the gross profit for the year respectively. Our profit before and after tax for FYE2018 both grew by 59.46% and 55.39% on a CAGR basis respectively. This growth is mainly attributable to the revenue CAGR of 44.37% for the same period as well as an improvement in efficiency and reduced overheads as a result of economies of scale achieved through our growth. Profit before tax ("PBT") grew by RM91.55 million from RM346.07 million in FYE2017 to RM437.63 million in FYE2018 showing an increase of 26.46%. Similarly, Profit after tax ("PAT") grew RM88.05 million from RM304.79 in FYE2017 to RM 392.84 in FYE2018. The growth of PBT and PAT was slightly higher than the revenue growth of 20.60% as a result of lower overheads resulting in improved PBT and PAT margins of 13.33% and 11.97%, as compared to 12.71% and 11.20% PBT and PAT margins recorded in FYE2017. 0.76 1.40 2.17 2.72 3.28 Revenue 2014 2015 2016 2017 2018 RM Billion 0.5 1.0 1.5 2.0 2.5 3.5 3.0 111.31 232.46 373.72 483.93 582.32 Gross Profit RM Million 100 200 300 400 600 500 2014 2015 2016 2017 2018 67.68 67.37 159.57 156.56 267.93 245.81 346.07 304.79 437.63 392.84 Profit Before / After Tax 2014 2015 2016 2017 2018 RM Million 50 100 150 200 250 300 350 400 450 PBT PAT