DRB-Hicom reports net loss of RM 179 million in third quarter

KUALA LUMPUR: DRB-Hicom Bhd dipped into the red with a net loss of RM 179.44 million in the third quarter ended September 30, 2021 (Q3 FY2021), compared to a net profit of RM 47.5 million in the same period last year.

Revenue declined to RM 2.12 billion from RM 3.56 billion in the third quarter of fiscal 2020 as the foreclosure in July and August 2021 restricted business activities across the group, a- he said in a file filed with Bursa Malaysia today.

For the cumulative nine-month period ended September 30, 2021, DRB-HicomNet RM loss narrowed to RM 413.89 million from RM 431.86 million previously while revenue slipped to RM 8.25 billion from RM 8.31 billion in the same period there is one year old.

DRB-Hicom said its automotive sector revenue fell to RM 1.27 billion in the third quarter of fiscal 2021, from RM 2.54 billion in the third quarter of fiscal 2020, the business of sale having ceased by virtue of the movement control order.

However, for the nine-month period, the industry recorded a four percent increase in revenue to RM 5.63 billion from RM 5.41 billion in the corresponding period last year.

“71,244 Proton car units found new homes in the nine months to September, giving them a year-to-date market share of 22% compared to 21% during the same period in 2020” , did he declare.

In the service sector, DRB-Hicom said sector revenue fell 9% to RM835.21 million in the third quarter of fiscal 2021 from RM918.67 million in the third quarter of fiscal year. 2020, due to lower revenues at its subsidiary, Pos Malaysia Bhd..

In the real estate industry, he said revenue fell 88% in the third quarter of fiscal 2021 to RM12.84 million from RM 104.32 million in the third quarter of fiscal 2020.

Going forward, he said the government’s decision to extend the sales tax exemption for passenger vehicles until June 20, 2022 would result in strong demand for cars.

“In addition, the lifting of the ban on interstate travel and the gradual reopening of borders should boost the group’s other activities in the logistics, defense, aerospace, banking and services segments. “, did he declare.

Nevertheless, DRB-HICOM expressed concern that economic uncertainties could still persist and that the group would continue to remain vigilant and cautious in the management of its activities.

“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,” he added. – Bernama

Ann J. Cox