DRB-Hicom record RM179mil net loss in Q3

KUALA LUMPUR: DRB-Hicom Bhd dipped into the red with a net loss of RM179.44 million in the third quarter ended Sept 30, 2021 (Q3 FY2021) compared with a net profit of RM47.5 million in the same period last year.

Revenue declined to RM2.12 billion versus RM3.56 billion in Q3 FY2020 as the lockdown in July and August 2021 restricted business activities across the group, it said in a filing with Bursa Malaysia today.

For the cumulative nine-month period ended Sept 30, 2021, DRB-Hicom’s net loss narrowed to RM413.89 million versus RM431.86 million previously while revenue slipped to RM8.25 billion against RM8.31 billion in the same period a year ago.

DRB-Hicom said its automotive sector’s revenue declined to RM1.27 billion in Q3 FY2021 from RM2.54 billion in Q3 FY2020 as sales activity ceased under the movement control order.

However, for the nine-month period, the sector recorded a four per cent rise in revenue to RM5.63 billion against RM5.41 billion in the corresponding period of last year.

"71,244 units of Proton cars found new homes in the nine months to September, giving them a year-to-date market share of 22 per cent against 21 per cent in the same period in 2020,” it said.

On the services sector, DRB-Hicom said revenue for the sector fell nine per cent to RM835.21 million in Q3 FY2021 versus RM918.67 million in Q3 FY2020 led by the falling revenue of its subsidiary, Pos Malaysia Bhd.

On the properties sector, it said revenue dipped 88 per cent in Q3 FY2021 to RM12.84 million from RM104.32 million in Q3 FY2020.

Moving forward, it said the government’s decision to extend the sales tax exemption for passenger vehicles until June 20, 2022 would induce strong demand for cars.

"In addition, the lifting of the interstate travel ban and gradual re-opening of borders is expected to boost the group’s other businesses in the logistics, defence, aerospace, banking and services segments,” it said.

Nevertheless, DRB-HICOM said it is concerned that economic uncertainties might still persist and the group would continue to remain vigilant and cautious in managing its businesses.

"The group does not expect the economic recovery in Q4 2021 to reverse the cumulative negative impact brought about by the COVID-19 pandemic for the financial period ended Sept 30, 2021,” it added. - Bernama

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DRB-Hicom , Proton , Results , Q3 , Lockdown , sales tax


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