KUALA LUMPUR, Aug 24 — DRB-Hicom Bhd’s net profit fell to RM33.71 million in the second quarter ended June 30, 2023 (2Q), from RM169.56 million in the same quarter last year due to lower profit from operations and higher finance costs.
Revenue, however, rose 12 per cent to RM3.98 billion from RM3.55 billion previously, the group said in a filing to Bursa Malaysia today.
For the first six months of 2023 (1H 2023), its net profit declined to RM141.62 million from RM143.82 million in 1H 2022, while revenue surged 22.1 per cent to RM8.09 billion from RM6.62 billion previously.
“Performance in 1H 2023 was mainly driven by the automotive sector, in particular by Proton, as well as DRB-Hicom’s automotive distribution, and manufacturing and engineering companies, which registered a 27.8 per cent year-on-year (y-o-y) increase in revenue,” the group said in a separate statement.
It said the banking sector’s revenue rose 37.3 per cent y-o-y to RM806.77 million in 1H 2023 primarily due to higher financing income led by the growth in financing volume.
“This was attributed to sustainable growth and expanding customer base as well as the rise in the overnight policy rate to 3.0 per cent in the current period against 2.0 per cent in the corresponding period,” it said.
DRB-Hicom said revenue for the services sector increased by 13.3 per cent y-o-y in 1H 2023 driven by the inflight catering business and new contracts secured by the logistics business.
The property sector’s revenue improved by 20.6 per cent in 1H 2023 mainly due to higher revenue recognised from property construction projects, which was partially offset by lower revenue from development projects, it said.
On prospects, DRB-Hicom said, to ensure sustainable growth, the group will continue to strengthen its operational efficiency and cost management initiatives for the other core sectors, namely aerospace and defence, banking, services, and properties.
“The postal sector remains on track in its transformation roadmap, leveraging on technology to enhance customer experience and continue to adopt prudent cost-control discipline,” it said.
The group added that a satisfactory financial performance is expected for the financial year ending December 31, 2023 (FY2023) as compared to FY2022. — Bernama