KUALA LUMPUR: DRB-Hicom Bhd
registered a net loss of RM19.7mil for the first quarter ended June 30, 2015, compared with a net profit of RM107.8mil a year ago, due to lower sales of motor vehicles by its automotive division and sees a very challenging year.
For the quarter in review, the diversified conglomerate registered a decline of 20.7% in revenue to RM2.95bil from RM3.72bil previously, dragged down by its automotive and services divisions. Its loss per share stood at 1.02 sen compared with an earnings per share of 5.58 sen.
DRB-Hicom said on Thursday its pre-tax profit fell 91% to RM16.68mil in the quarter in review, compared with RM185.06mil a year ago.
“The reduction was mainly due to lower sales of motor vehicles by the automotive companies following the initial impact of post Goods and Services Tax implementation,” it explained.
The group said it would expect the current financial year ending March 31, 2016 to be a “very challenging year”.
“Recognising the need to mitigate the impact of the current market conditions, DRB-HICOM has taken pro-active measures to be more vigilant in managing its cost of doing business through effective cost controls while optimising its resources and improving operational efficiencies, as well as more aggressive sales and marketing initiative throughout the group,” it said.
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