Bermaz Auto Bhd’s (BAuto) net profit for the second quarter ended Oct 31, 2018 (2QFY19), rose some 230% year-on-year (YoY) to RM73.92 million from RM22.2 million a year ago for the same corresponding period due to higher revenue and profit margins from its domestic operations during the tax holiday period in June to August this year.
Its associate company, Mazda Malaysia Sdn Bhd, contributed a significantly higher share of profit during the quarter, the carmaker noted in an exchange filing yesterday.
The improvement in gross profit margin was mainly attributed to a favourable sales mix and a stronger ringgit against the yen, while the higher share of profit contribution from Mazda Malaysia arose from the increase in production volume for the new CX-5 model to cater for both the domestic and export market.
The growth was slightly dampened by a lower profit contribution from its Philippine operations in line with the decrease in sales volume due to the impact of the Tax Reform for Acceleration and Inclusion Act that was implemented in January this year.
Revenue for the three months jumped 46.34% YoY to RM690.32 million due to a surge in sales from the domestic operations following the zero-rating of the Goods and Services Tax (GST) from June to August and the absorption of the Sales and Services Tax (SST) for bookings received before Sept 1, 2018.
BAuto said the automotive segment market trading conditions are expected to remain challenging following the end of the tax holiday period, a more competitive trading environment, the weaker ringgit and cautious consumer sentiment.
“Despite the challenging market trading conditions, the Malaysian operation is in a competitive advantage position due to the huge back orders collected during the GST tax holiday as a result of our absorption of SST,” the company noted.