KUALA LUMPUR – Sime Darby Bhd’s net profit slipped to RM240 million in the third quarter ended March 31 (Q3 FY2023) compared to RM244 million in the same quarter last year due to lower profit from its motors business in China and higher finance costs.
Revenue, however, was 9.5% higher at RM11.53 billion from RM10.52 billion previously, it said in a statement with Bursa Malaysia today.
The group’s motors division's profit before interest and tax (PBIT) declined by 28.3% to RM170 million in Q3 FY2023, largely due to lower profits from China as a result of lower margins.
“The impact was partially mitigated by strong results from the Malaysian and Singapore operations,” it said.
Sime Darby group chief executive officer Datuk Jeffri Salim Davidson said the group has taken a foothold in the Indonesian automotive market with its new joint venture with PT Performance Motors Indonesia, in a strategic move to continue strengthening regional play.
“This marks our first foray in Indonesia for our motors business, with a view of growing our presence in this market further.
“We also recently announced a partnership with Chery Automobile for the assembly of Chery vehicles at our motor vehicle production and assembly facility, Inokom in Kulim, Kedah as part of our efforts to grow our assembly portfolio,” he said.
Meanwhile, Sime Darby said lower profit in the quarter under review was partly offset by higher profit from its industrial business.
The group’s PBIT for the industrial division increased by 57.3% to RM236 million in Q3 FY2023, predominantly due to higher profit from Australasia.
Jeffri noted that the group signed an agreement in March to acquire Onsite Rental Group Ltd, a leader in the mining and construction equipment rental market, and that the acquisition was completed in April.
“This deal is key in providing diversification to our industrial rental equipment offerings across a broad range of industries in the Australian market.
“Given the strong demand in this sector in Australia, we look forward to seeing Onsite deliver to the group’s earnings while we expand our geographical footprint for our Industrial division,” he said. – Bernama, May 24, 2023
