OSK posts 3Q net profit of RM105.21mil


KUALA LUMPUR: OSK Holdings Bhd recorded a net profit of RM105.21mil in the third quarter ended Sept 30, 2020, slightly lower than RM107.58mil in the previous corresponding quarter.

This came depite higher recorded revenue of RM319.67mil compared with RM315.72mil in the comparative quarter.

"Although all the businesses showed signs of recovery since the easing of the movement restriction under Recovery Movement Control Order on 10 June 2020, most of the Divisions of the Group recorded lower pre-tax profit in 3Q20 compared to 3Q19 except Construction Segment and Capital Financing Division," said OSK.

In the property segment, pre-tax profit dropped 35% year-on-year (y-o-y) to RM36.53mil with fewer ongoing property projects and negative impact from the rental concession granted to retail tenants afected by the conditional movement control order.

The group's industries segment was impacted by slower sales for cables that were dependent on property and construction activities, and additional allowance for doubtful debts. The segment's revenue fell 40% to RM43.12mil while pre-tax profit plunged 96% to RM310,000.

The hospitality segment's revenue was halved to RM12.16mil while pre-tax losses widened 2.42 times to RM2.45mil due to hotel's being closed during the restriction period and low tourism activities.

Meanwhile, the capital financing division posted a higher revenue of RM20.55mil and pre-tax prodit of RM12.47mil due to higher loan disbursement in the quarter.

The investment holding division contributed 24% higher pre-tax profit of RM60.66mil due mainly to higher profit recorded by RHB and lower finance cost at the investment holding level.
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