DRB-Hicom posts RM11.42m net loss in Q2

PETALING JAYA: DRB-Hicom Bhd posted a net loss of RM11.42 million in the second quarter ended Sept 30, 2018, from a net profit of RM742.6 million in the previous corresponding quarter mainly due to lower performance of the automotive and services sectors.

Revenue for the quarter slightly decreased by 1.7% to RM3.18 billion, compared with RM3.24 billion in the same period last year.

For the six months period, it registered a net loss of RM78.02 million, against a net profit of RM559.8 million a year ago, while revenue declined by 8.3% to RM5.84 billion, from RM6.37 billion previously mainly due to lower sales recorded by automotive and property sectors.

On its prospects, the group said that the execution of its growth strategy to achieve long term sustainability will continue despite the volatility and uncertainties in the domestic and external environment.

Given this scenario, the group said it will continue to remain vigilant and exercise prudent cost management across its operations.

“While the turnaround of Proton remains on track, the group’s performance for the financial year ending March 31, 2019 will be contingent on the improved financial performance of the national carmaker,” it added.

Additionally, it said the launch of the Proton X70, together with other product launches by marques within the group is expected to improve overall sales performance of the automotive sector.