By FARA AISYAH / Pic By MUHD AMIN NAHARUL
DRB-Hicom Bhd returned to the black in the third quarter ended Dec 31, 2018 (3QFY19), posting a net profit of RM73 million or 3.78 sen earnings per share (EPS) against a net loss of RM70.03 million or loss of 3.62 sen a share in 3QFY18.
Improvement across its automotive, services and property businesses saw its 3Q revenue increase 9.31% year on- year (YoY) to RM3.17 billion, the group noted in its exchange filing yesterday.
Automotive companies, including Proton Holdings Bhd, recorded a higher sales volume in the quarter, plus a higher percentage of completion of the AV 8×8 project by DRB-Hicom Defence Technologies Sdn Bhd.
The net negative variance recorded last year was due to sales revenue of Lotus which was disposed of in September 2017, the filing stated.
DRB-Hicom’s services sector also achieved higher revenue during the period, mainly from the banking and waste management businesses.
However, the reduction in revenue from the property sector was due to lower revenue recognised from construction projects, the group’s filing noted.
For the cumulative nine month period (9MFY19), DRBHicom posted a net loss of RM5 million or 0.26 sen loss per share against a RM489.78 million net profit or EPS of 25.33 sen in the same period in FY18.
Revenue for 9MFY19 fell 2.8% YoY to RM9.01 billion from RM9.27 billion a year ago.
DRB-Hicom stated its subsidiary, Proton, has to date delivered over 7,000 units of its maiden X70 SUV from the 18,000 bookings received.
The carmaker continues to pursue quality improvement initiatives and model offerings with the aim to boost market confidence in Proton.
At the sales networks, adoption of global standards have ensured a more customeroriented delivery process.
“Other business units within the group also continue pursuing operational improvements across the value chain, as they move to enhance their business performance,” the company stated.
Operating results for the current financial year ending March 31, 2019 (FY19), are expected to be better supported by its automotive and services businesses, DRB-Hicom added.
The company closed five sen or 2.63% lower at RM1.85 yesterday, giving it a market capitalisat ion of RM3.58 billion.
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