Elk-Desa expects more growth in its hire purchase business

PETALING JAYA: Despite some softness of its business in the recent quarter, Elk-Desa Resources Bhd is expected to sustain its growth momentum underpinned by the continued growth of its hire purchase (HP) receivables.

TA Research said the non-bank lender’s HP disbursements in the first quarter of financial year 2024 (1Q24) had eased by 36% year-on-year (y-o-y) to RM44.3mil, following strong receivables growth in the previous financial year. The recovering economy and improved consumer sentiment supported the receivables growth in the previous financial year, which had since subsided, the research house added.