Dyna Mac net profits slump by $0.8 million in 2Q

Profit margin decreased to 6.9% from 9.8% last year.

Dyna Mac registered good gains this quarter, but expenses have pulled the company’s financials downward.

In a media release, Dyna Mac revealed that gross profit increased by $3.6m or 26.7% to $17.2m in 2Q2014 from $13.5m in 2Q2013 partly in line with higher revenue recognized. Gross profit margin for 2Q14 is 17.6% which is in line with the gross profit margin of 17.7% in 2Q13.

Profit after tax decreased by $0.8m to $6.7m in 2Q2014 from $7.5m in 2Q2013. Profit after tax margin decreased to 6.9% in 2Q2014 from 9.8% in 2Q2013. The decrease in net profit margin was mainly due to increase in employee compensation as explained in the section “Administrative Expenses”.

Administrative expenses increased by $3.6m to $10.0m in 2Q2014 from $6.4m in 2Q2013, mainly due to an increase in employee compensation of $3.5m arising from an increase in headcount and increase in salaries.

Other gains of $1.3m and $1.9m in 2Q2014 and 2Q2013 were mainly due to unrealized gain on the revaluation of foreign currency receivables and fair value gain on financial