One-time gain swells DRB-Hicom earnings

PETALING JAYA: DRB-Hicom Bhd posted a 136% jump in net profit to RM167mil in the last quarter ended March 31 compared with RM70.6mil made a year ago, as the company booked the one-time gain from the disposal of its insurance business and several parcels of land in Johor.

Revenue rose 24% to RM4.2bil for the quarter from RM3.4bil previously.

The group as proposed a final dividend of 4.5 sen per share, subject to approval of shareholders, bringing the total dividend payout for the financial year 2014 to six sen per share. For the full financial year, DRB posted a net profit of RM456.8mil, a 20.6% decline from RM575.3mil in the previous year. Its revenue for the year exceeded RM14bil mark by 8.1% compared with RM13bil previously.

In a statement yesterday, the group attributed the revenue growth to its automotive and defence (AD), services, and property, assets and construction (PAC) businesses.

“The AD sector growth was mainly driven by the progress of the AV8 (8x8 wheeled Armoured Vehicle) project and the inclusion of aerospace composite business, which was acquired during the year through Composite Technology Research Malaysia Sdn Bhd.

“The services sector saw improvements in the performance of its concession businesses,” it said, adding that the disposal of land in Iskandar Malaysia contributed to the higher revenue for the PAC segment.

DRB explained the decline in its profit was due to the more challenging and competitive automotive business environment, which resulted in margin compression for the automotive distribution business, as well as the increase in the cost of doing business.

“We remained focused on our efforts to strengthen and expand our core businesses internally and externally,” said DRB group managing director Tan Sri Mohd Khamil Jamil in the same statement.