KUALA LUMPUR: DRB-Hicom Bhd
returned to the black in the financial year ended March 31, 2018 after three years of losses, though in the latest quarter it was impacted by the weaker performance of the automobile division.
The diversified group announced on Thursday that it posted net profit of RM498.44mil in FY18 compared with a net loss of RM456.64mil in FY17.
DRB-Hicom said profit before tax (PBT) was RM415.13mil as revenue increased more than 6% year-on-year to RM12.79bil. In FY17, it made a loss before tax of RM227.69mil on the back of RM12.06bil in revenue.
“Revenue at both the services and the property sectors supported the lower sales at the automotive sector,” it said.
According to the notes to the accounts, the improvement in the financial results was mainly attributable to the recognition of research and development (R&D) grant of RM1.1bil and better financial performance of operating companies.
However, the effects of Proton restructuring reduced the overall profit.
Earnings per share (EPS) were 25.78 sen, compared to loss per share of 23.62 sen a year ago. The board of directors recommended a first and final dividend payout of three sen per share versus one sen in FY17.
Commenting on the automotive sector, it said revenue slipped 7.5% on-year to RM7.47bil in FY18.
“On a quarterly basis, as with the previous quarter, automotive sales continue to dip with total industry volume (TIV) in the period from January to March 2018 coming in at 135,140 units.
“Compared to the same period in 2017, this represents a slip of more than 4% as the industry continues to grapple with poor loan approvals and a market that adopts a wait-and-see approach to vehicle acquisition,” it said.
However, revenue at the group’s services sector rose 26.5% on-year to RM4.49bil, boosted by the better performance at Pos Malaysia and Alam Flora.
“E-commerce growth will continue to be a prime driver for the Pos Malaysia, eclipsing revenue from traditional mail. In 2016, globally less people sent traditional mail, with volume dipping 4.2%,” it said.
Parcel volumes however rose 7.8% in the same year, and it is expected that 2017 as well as 2018 numbers will mirror this trend.
At the property sector, revenue came in at RM824.86m with the sector’s construction projects supporting the performance.
For the fourth quarter, it posted net loss of RM10.26mil compared with losses of RM329.57mil a year ago. Revenue fell to RM3.06bil from RM3.48bil. Loss per share were 0.53 sen compared with loss per share of 17.05 sen a year ago.
Revenue from the automotive sector fell to RM1.65bil from RM2.11bil a year ago while services recorded a firmer RM1.218bil from RM1.124bil. Property, asset and construction came in at RM186mil versus RM246.91mil a year ago.
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