KUALA LUMPUR: Perwaja Holdings Bhd posted net profit RM22.66 million for the first quarter ended March 31, 2010, compared to a net loss RM56.45 million a year earlier, on the back of a 17.4% increase in revenue to RM373.74 million.

Earnings per share rose to 4.06 sen from loss per share of 10.08 sen, while net assets per share was RM1.75.

In a filing to Bursa Malaysia Securities on Tuesday, May 25, Perwaja attributed the increase in revenue and the net profit to higher steel prices driven by demand in the wake of global economic recovery.

On its prospects for the current financial year, Perwaja said domestic steel consumption had been on the rise in tandem with the rebound in construction activities, both in the public and private sectors.

"While prices of both iron ore and steel products have increased significantly since 2009, with the recent volatility in iron ore price, steel prices is expected to track the volatility accordingly.

"The group will adopt a prudent approach by continually monitoring the price fluctuations and fine-tuning its inventory stocking strategy," it said.