R&D grant reimbursement puts DRB-Hicom back in black in Q2

PETALING JAYA: DRB-Hicom Bhd returned to the black for the second quarter ended Sept 30, 2017, posting a net profit of RM736.6 million against a net loss of RM309.6 million in the previous corresponding period, thanks to the RM1.1 billion research and development (R&D) grant reimbursement from the government.

The group realised a loss on disposal of Lotus Advance Technologies Sdn Bhd of RM133.19 million, which has been included under other expense in the consolidated statement of comprehensive income for the quarter.

Its revenue jumped 26.4% to RM3.34 billion, compared with RM2.64 billion in the same period last year, contributedn mainly by higher revenue from services and property, asset and construction sectors.

For the first half of the year, DRBHicom reported a net profit of RM566.86 million versus a net loss of RM478.9 million in the same period last year.

This was on the back of a 29.8% rise in revenue from RM5.14 billion to RM6.68 billion, attributed by increased sales revenue across all the business sectors of the group.

On prospects, DRB-Hicom said the group continues to see improvement in its overall businesses, noting the services sector remains a key contributor, driven by rapid expansion in the logistics businesses.

The stock slipped 1 sen or 0.58% to RM1.71 last Thursday.