DRB-Hicom blames Covid-19 curbs, impairments for RM217mil loss in Q2

KUALA LUMPUR: Conglomerate DRB-Hicom Bhd said its major operating companies were badly affected by the impact of nationwide Movement Control Order (MCO) imposed in May and June, resulting in a huge loss in the second quarter.

The impairment loss of certain property, plant and equipment worsened its latest quarterly results.

For the three-month ended June 30, DRB-Hicom made a net loss of RM217.5mil compared with a net loss of RM306mil a year ago.

Revenue improved to RM2.6bil compared with RM2bil previously.

"The Group remains cautious of its financial performance for the year ending Dec 31 given the heightened uncertainties over the full economic impact of the prolonged Covid-19 pandemic," it said.

The automotive sector remains the backbone of DRB-Hicom’s businesses.

"With the implementation of the Full MCO that halted vehicle sales, Proton and other marques within the Group will focus on re-strategising its sales plan," DRB-Hicom said.

"DRB-Hicom’s other businesses in the defence, aerospace, banking, services and properties segments will continue to focus on prudent cash management to stay afloat amidst the challenging business landscape arising from the pandemic," it added.