DRB-HICOM REDUCES NET LOSS BY HALF
Firm sees performance improving on better economic outlook
DRB-HICOM Bhd has trimmed its net loss for the year ended March 31 to RM454.4 million from RM992.76 million in the previous year.
The group managed to keep revenue levels at RM12.06 billion in the year, against RM12.17 billion previously.
DRB-HICOM expects its performance to improve this year, as Malaysia register’s a gross domestic product growth of 5.6 per cent in the first quarter of this year, boosted by strong domestic demand, higher private sector investment, improved net exports and ringgit stabilisation.
“In line with economic growth, the group’s business sectors are expected to follow this trend as well.
“As the economic activities continue to gain momentum, the group’s performance for the financial year ending March 31 2018 is expected to improve accordingly,” it said in a statement yesterday.
DRB-HICOM said the services sector had continued to boost its revenue as the volume of the national automotive sector shrank last year
The services sector recorded a 41 per cent revenue increase to RM3.55 billion against RM2.51 billion in the previous year.
DRB-HICOM said Pos Malaysia Bhd was a major boost as it became a subsidiary in the year under review.
The group said the property sector had boosted revenue by 45 per cent to RM427.31 million during the year.
The sector also saw a gain of RM398.11 million from the disposal of its entire 90 per cent equity in Corwin Holding Pte Ltd in Singapore in November last year, through subsidiary Hicom Megah Sdn Bhd.
DRB-HICOM said its automotive segment saw revenue slip 14 per cent to RM8.08 billion largely due to lower sales, as the industry contracted last year.
It said 2015’s record 666,677unit total industry volume had declined by 13 p er cent to 580,124 units last year.
This affected all the brands under the group, including Proton Holdings Bhd.
A Pos Malaysia employee tending to parcels at the company. The unit helped to boost DRB-HICOM’s earnings last year.