Business

DRB-Hicom back to black in Q1 with RM107.91 mil net profit

However, revenue rises 33.7% to RM4.10 billion from RM3.07 billion previously

Updated 3 years ago · Published on 26 May 2023 9:39PM

DRB-Hicom back to black in Q1 with RM107.91 mil net profit
DRB-Hicom says its automotive sector revenue rose 46.3% to RM3.02 billion in Q1 FY2023 from RM2.07 billion previously due to improved market share and auto sales performance from all marques within the group. – Bernama pic, May 26, 2023

KUALA LUMPUR – DRB-Hicom Bhd returned to the black in the first financial quarter ended March 31, 2023 (Q1 FY2023) with a net profit of RM107.91 million against a net loss of RM25.74 million in the same quarter last year.

Revenue rose 33.7% to RM4.10 billion from RM3.07 billion previously following an improved performance in the group’s automotive and banking sectors, the company said in a filing with Bursa Malaysia today.

In a separate statement, DRB-Hicom said its automotive sector revenue rose 46.3% to RM3.02 billion in Q1 FY2023 from RM2.07 billion previously due to improved market share and auto sales performance from all marques within the group.

“Notably, Proton achieved remarkable growth in Q1 FY2023 with 40,287 units sold compared with 26,706 units in the corresponding period in FY2022 driven by Proton’s key models, including the Proton X50 that has enjoyed sustained popularity since its introduction,” it said.

Its banking sector expanded 33.1% to RM379.29 million in the quarter under review against RM284.99 million a year ago primarily due to higher financing income led by financing volume growth.

Revenue for the services sector increased by 10.6% to RM204.37 million in Q1 FY2023 compared with RM184.82 million in Q1 FY2022 driven by in-flight catering business and new contracts secured by the logistics business.

The aerospace and defence sector also recorded a higher revenue of RM168.63 million in Q1 FY2023 from RM160.32 million previously mainly due to higher delivery of single-aisle and certain aircraft parts.

“However, this was partially offset by lower delivery of defence products,” it said.

On prospects, the conglomerate said the introduction of new models featuring advanced technologies from marques under the group, such as Honda, Mitsubishi and Isuzu as well as Modenas, is expected to enhance DRB-Hicom’s overall competitive advantage.

“The postal sector continues to execute its multi-pronged transformation plan aimed at improving its financial performance and optimising margin-led initiatives.

“Similarly, the aerospace sector is focused on accelerating productivity to handle the influx of post-pandemic aircraft orders,” it said.

It added that the group’s banking, defence, services and properties sectors are also strengthening their core operations to ensure sustainable growth throughout challenging business cycles. – Bernama, May 26, 2023

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