DRB-Hicom Reports Net Loss of RM 179.4 Million at 3TQFY21 Due to Lower Contribution from Automotive Business

KUALA LUMPUR (Nov 18): DRB-Hicom Bhd recorded net loss of RM 179.44 million or loss per share of 9.28 sen for the third quarter ended September 30, 2021 (3QFY21) compared to profit net of RM 47.5 million or earnings per share of 2.46 sen a year ago, mainly due to the lower contribution of its automotive business.

In addition, the diversified conglomerate recognized a change loss of 11.46 million ringgit resulting from the funding moratorium offered to individuals, small and medium-sized enterprises and micro-enterprises for a six-month deferral of payment in the current quarter. , indicated Thursday his file with Bursa Malaysia. .

Revenue for fiscal year 3QFY21 fell 40.51% to RM 2.12 billion from RM 3.56 billion a year ago, as revenues for July and August were significantly affected by the foreclosure and the restriction of commercial activities under phases 1 and 2 of the national recovery plan, with operations not resuming until after the reopening of economic activities announced by the government in mid-August 2021.

On a quarterly basis, DRB-Hicom reduced its net loss by RM217.5 million in 2TFY21. The turnover amounted to 2.62 billion RM in the previous quarter.

For the cumulative nine-month period, DRB-Hicom saw its net loss decline to RM 413.89 million from RM 431.86 million a year ago, while revenues fell 0.62% to 8.25 billion RM against 8.3 billion RM.

Regarding the outlook, DRB-Hicom said its automotive sector remained the main contributor to the group’s activities, noting that the government’s decision to extend the sales tax exemption for passenger vehicles until June 30, 2022 would induce high demand for cars.

“With operations running at full capacity governed by strict standard operating procedures (SOPs), Proton and other brands in the group are committed to increasing production and speeding up delivery, along with various promotion programs to boost sales growth, ”he said.

According to DRB-Hicom, with the resumption of economic activity, the national automaker Proton delivered 10,380 units in September against 2,741 units in August and 1,904 units in July during containment.

He said the Proton X50 and X70 have continued to generate strong demand and have become leaders in their respective segments with a total of 27,312 units sold since the start of the year, representing 37.4% of sales. total Proton since the start of the year.

The Saga also maintained its leadership in the A-segment sedan market and remains the best-selling Proton model, he noted.

“In addition, the lifting of the ban on travel between States and the gradual reopening of borders should boost the group’s other activities in the logistics, defense, aerospace, banking and services segments. . However, as economic uncertainties may persist, the group will continue to remain vigilant and prudent in the management of its activities.

“Notwithstanding the above, the group does not expect the economic recovery in the fourth quarter of 2021 to reverse the cumulative negative impact caused by the Covid-19 pandemic for the fiscal year ended September 30, 2021,” added DRB-Hicom.

DRB-Hicom shares closed unchanged at RM 1.66, valuing the group at RM 3.21 billion.

Ann J. Cox