by FARA AISYAH / TMR file pix

DRB-Hicom Bhd posted a net loss of RM11.42 million in the second quarter ended Sept 30, 2018 (2QFY19), compared to a net pro t of RM742.6 million a year ago, largely due to the absence of exceptional gains.

Last year, it booked one-off gains of RM1.1 billion from a research and development grant and effect of Proton Holdings Bhd’s restructuring costs of RM325.47 million.

DRB-Hicom’s revenue for the quarter dropped to RM3.18 billion from RM3.24 billion in 2QFY18 as the property segment recorded lower sales.

The company, in its unaudited financial statement to Bursa Malaysia yesterday, said the automotive and services sectors performed better, but the property division recorded lower sales during the quarter under review.

The firm posted a revenue of RM5.84 billion for the cumulative six months (6MFY19), 8.32% lower compared to RM6.37 billion a year earlier.

DRB-Hicom said the decline was mainly due to lower sales in the property sector.

The automotive sector continues to drive the group’s revenue, delivering RM3.33 billion in the six-month period. As a whole, DRB-Hicom’s stable of automotive brands hold about a third of the domestic automotive total industry volume.

The tax holiday period, as a result of the abolishment of the Goods and Services Tax by the government this year, also boosted sales for all the brands under the group. Within the sector, Proton posted a revenue of RM1.05 billion in 2QFY19, rising more than 70% against the previous quarter.

The property segment’s revenue of RM278.91 million, however, was lower against the same period a year ago.

DRB-Hicom said the decline reflects the completion of Phase 1 of the Integrated Customs, Quarantine and Security Complex in Bukit Kayu Hitam, Kedah, which is undertaken by its subsidiary Northern Gateway Infrastructure Sdn Bhd.

“DRB-Hicom’s execution of its growth strategy to achieve long-term sustainability will continue despite the volatility and uncertainties in the domestic and external environments.

“Given this scenario, the group will continue to remain vigilant and exercise prudent cost management across its operations,” the company said.

DRB-Hicom said the launch of the Proton X70 — slated for next month — and other launches by the brands under the group would improve the overall sales performance of its automotive division.

While the turnaround of Proton remains on track, the group’s performance for the financial year ending March 31, 2019 (FY19), will be contingent on the improved financial performance of the national carmaker.

DRB-Hicom had on Oct 15, 2018, obtained shareholders’ approval to divest its solid waste management business and non-industrial property assets. These proposed disposals are pending fulfillment of other conditions precedent.