Ekuinas posts 7.0% revenue growth in FY23

KUALA LUMPUR: Ekuiti Nasional Bhd’s (Ekuinas) portfolio companies posted a 7.0 per cent year-on-year revenue growth for the financial year 2023 (FY2023) with cumulative committed direct investment reaching RM4.1 billion.

The government-linked private equity company said the gross internal rate of return (GIRR) for Tranche II and IV was 11.5 per cent and 43.0 per cent, respectively, while Tranche III saw a GIRR of -0.6 per cent.

“Notably, Exabytes and Medispec achieved impressive revenue growth of 22.5 per cent and 15.4 per cent, respectively.

“Although the overall earnings before interest, tax, depreciation and amortisation (Ebitda) for portfolio companies contracted by seven per cent, Orkim recorded an Ebitda growth of 8.9 per cent, and Ekuinas’s Education Group saw a remarkable 65.3 per cent increase in Ebitda,” it said.

In terms of outsourced funds, Ekuinas said that Tranche I achieved a GIRR of 4.1 per cent, whereas Tranche II recorded a GIRR of -3.1 per cent for the year.

“Ekuinas has been focused on exits for all its outsourced funds, closely monitoring their performance and preparing for divestments when valuations are more favourable,” it said in a statement today.

Chief executive officer Datuk Syed Yasir Arafat Syed Abd Kadir said 2023 was a trying year due to the geopolitical and macroeconomic impact on local and global economies.

“In navigating the post-pandemic landscape during the year, Ekuinas implemented a three-pronged strategy — firstly, to deploy the majority of its remaining capital for Tranche IV with a keen emphasis on the healthcare and industrial sectors.

“(The second strategy) was to allocate at least 50 per cent of the Dana Asas fund by end-2023, and (the third was) to drive value creation and growth momentum across our portfolio companies amid economic headwinds,” he said.

Syed Arafat noted that Ekuinas announced two new initiatives for 2024 — committing RM100 million to a second tranche for Dana Asas, dedicated to supporting more mid-market bumiputera companies with high-growth potential.

“We also aim to expand into private credit with the establishment of a RM800 million fund,” he added.

Since its establishment in 2009, Ekuinas’s portfolio today comprises 43 companies via its direct and outsourced funds, with a total of RM5.1 billion in economic capital deployed and a total investment of RM4.5 billion.

“The company continues to meet its bumiputera equity target, achieving 1.6x capital invested totalling RM6.4 billion, with an increase in total shareholders’ value to RM8.1 billion, with 2.1x capital invested.

“Additionally, there has been an increase of 28.1 per cent in bumiputera management and 15.2 per cent in bumiputera employees since Ekuinas’s entry,” said the company. – BK