Smaller setback in the first quarter

PETALING JAYA: DRB-Hicom Bhd’s net loss narrowed to RM66.6 million in the first quarter ended June 30 compared with RM182.79 million, on the back of higher share of profits from associate companies and property sector.

Revenue for the quarter under review fell 15.2% to RM2.65 billion from RM3.13 billion, mainly due to lower sales recorded by the automotive sector.

DRB-Hicom said in a filing with the stock exchange that revenue for the automotive sector came in at RM1.4 billion, with national carmaker Proton delivering 6,173 units in June 2018.

Looking ahead, the group expects the automotive sector to gain momentum, with the impending Proton SUV to be launched by the end of 2018.

“New product launches from other marques as well as promotional activities will act as catalyst to drive sales volume further.”

To better focus on capital management and flexibility to pursue growth strategies, DRBHicom said the group continues to find ways to unlock value from its assets.

“DRB-Hicom’s recent announcement of the sale of waste management subsidiary Alam Flora Sdn Bhd, and the earlier proposed rationalisation of non-industrial property assets is in line with this initiative.”

Amid the persistent challenging business landscape, the group will remain focused on driving operational efficiencies while maintaining capital discipline and operational excellence across all its businesses and subsidiaries to steer the entities forward.

DRB-Hicom shares were down 9 sen or 3.8% to close at RM2.25 yesterday on 7.3 million shares traded.