KUALA LUMPUR (Dec 12): Bermaz Auto Bhd (BAuto) has recorded a  more than three-fold jump in net profit to RM73.92 million or 6.36 sen per share in the second quarter ended Oct 31, 2018 (2QFY19) owing to better sales during the 3-month tax holiday, improved vehicle sales mix and margins.

Other contributing factors were the stronger ringgit against the Japanese Yen, and significantly higher share of profit contribution from its associate company, Mazda Malaysia Sdn Bhd, arising from the higher production volume for the new CX-5 model.

Although the auto company anticipates a slowdown in the months ahead because of the front loading of consumer purchases, it believes the huge back orders collected during the GST tax holiday as a result of the group’s absorption of the SST will put it in a competitive advantage.

In the quarter, revenue spiked 46.34% to RM690.32 million on higher sales volume from its domestic operations as a result of the reduction in the 6% Goods and Services Tax (GST) to 0% for June to August this year, and the boost in consumer demand especially for the new CX-5 model following the Group's announcement it would absorb the sales tax for bookings received before Sept 1, 2018.

In a filing with the local bourse today, the group declared a second interim single-tier dividend of 3.75 sen per share for the financial year ending April 30, 2019 (FY19), payable on Jan 25, 2019.

For the cumulative six months, net profit jumped nearly three fold to RM124.2 million or 10.74 sen a share, against RM42.41 million or 3.68 sen a share in the same period last year, while revenue increased 36.25% to RM1.18 billion.

Trading conditions ahead are expected to remain challenging however following the end of the tax holiday period, competitive trading environment, weakening ringgit and cautious consumer sentiment as a result of uncertainties in the local and global economy.

“The sales volume reflected a dip after the implementation of the SST on Sept 1, 2018, in line with BAuto’s expectations, as the surge in the demand from June to August 2018 has been neutralised with most customers having already forward purchased their vehicles during the tax holiday period,” said BAuto.

“Despite the challenging market trading conditions as mentioned above, BAuto noted that the bookings collected since the implementation of the SST on Sept 1, 2018 remains encouraging due to the upcoming festive seasons.

BAuto closed two sen or 0.94% down at RM2.12, for a market capitalisation of RM2.46 billion.