DRB-Hicom net profit slumps in Q3

PETALING JAYA: DRB-Hicom Bhd saw its net profit for the third quarter ended Dec 31, 2014 fall 93.6% to RM9.47 million from RM147.66 million a year ago mainly due to lower other income and higher taxation.
Its revenue rose 6% to RM3.53 billion compared with RM3.33 billion in the previous corresponding quarter.
For the nine months period, the group's net profit dropped 29% to RM210.4 million from RM295.88 million previously due to the higher automotive promotion and incentives costs offered towards the end of 2014.
Its revenue rose 4.4% to RM10.48 billion from RM10.03 billion a year ago on the back of revenue growth in all business sectors in the group.
In view of the prevailing global economic condition and the impending implementation of the Goods and Services Tax, the group anticipates a dampening of demand and sales of motor vehicles and properties.
"Nevetheless, the group will continue with its efforts to in improving competitiveness through cost and operational efficiencies, and products and services as well as maintaining aggressive sales and business activities to meet the challenging and uncertain economic conditions," it said.
The board has declared a single tier interim dividend of 1.5 sen per share amounting to RM29 million for the current financial year ending March 31, 2015 to be paid on April 28, 2015.