OSK Q1 earnings up 9%

PETALING JAYA: OSK Holdings Bhd first quarter net profit for the financial year ended March 31 2015 rose 9% to RM45.5 million from RM41.68 million a year before.
"The earnings growth was mainly due to higher share of profit of RHB Capital Bhd (RHBCap) group, up by 8% or RM2.96 million to RM41.30 million from RM38.34 million in Q1'14; coupled with the profit after tax from the group's businesses of RM4.25 million, up by 27% or RM0.91 million compared with RM3.34 million in 1Q14," it told Bursa Malaysia last Friday.
In addition, the group registered higher share of reserves of RHBC group of RM20.97 million in Q1'15 as compared with RM0.44 million in Q1'14.
Earnings per share for Q1'15 increased to 4.79 sen compared with 4.31 sen in Q1'14.
Revenue in the first three months, however, fell 8.82% to RM13.78 million from RM15.12 million a year ago.
In Q1'15, OSK's investment holding segment contributed a pre-tax profit of RM40.75 million, up by 14%, compared with RM35.64 million posted in Q1'14.
"The improved earnings was mainly due to higher share of profit of RHBCap group by 8% and net gain on investment securities of RM1.12 million compared with a net loss of RM1.51 million in 1Q14," it said.
Its capital financing segment pre-tax profit decreased to RM3.49 million in 1Q15 from RM6.01 million in 1Q14 due to lower capital market activities and allowance for impairment.
The property investment segment recorded a pre-tax profit of RM3.26 million as compared with RM3.21 million in Q1'14 on the back of higher rental yield.
On its prospects for the remainder of the year, OSK said the Group's property investment and capital financing activities performed well and are expected to contribute satisfactorily.