KUALA LUMPUR (Nov 30): DRB-Hicom Bhd has returned to the black after two quarters of losses, posting a net profit of RM736.57 million in the second financial quarter ended Sept 30, 2017 (2QFY18), compared with a net loss of RM309.63 million a year ago.

The diversified conglomerate attributed the improvement in its financial results to recognition of a research and development grant and better financial performance of its operating companies.

"However, the loss on disposal of Lotus Advance Technologies Sdn Bhd reduced the overall profits," DRB-Hicom said in a filing with Bursa Malaysia today.

It posted an earnings per share of 38.1 sen in 2QFY18, compared with a loss per share of 16.02 sen in 2QFY17.

Quarterly revenue rose 26.4% to RM3.34 billion, from RM2.64 billion in 2QFY17, mainly contributed by higher revenue from the services sector, as well as its property, asset and construction sectors.

The positive quarterly performance helped the group post a net profit of RM566.86 million in the cumulative six months (6MFY18), compared with a net loss of RM478.94 million in 6MFY17.

Revenue increased 29.8% to RM6.68 billion, from RM5.14 billion a year ago, thanks to increased sales revenue across all of the group's business sectors.

On prospects, DRB-Hicom said it continues to see improvement in its overall businesses.

The group expects its performance for the financial year ending March 31, 2018 (FY18) to improve against the previous year’s results.

"The services sector remains a key contributor to the group, driven by rapid expansion in the logistics businesses, besides the ongoing growth in the concession and financial services. The recent roll-out of the regional logistics hub Digital Free Trade Zone by the government and key collaborations between Pos Malaysia Group and major e-commerce players such as Lazada Malaysia, is projected to chalk an upward trajectory for the business and further strengthen the group's services sector," the filing read. 

"The group will continue to focus on its group-wide initiatives to reduce cost and improve efficiency, as part of its efforts to strengthen resilience, amid volatility and challenges in the external environment," DRB-Hicom added.

DRB-Hicom shares closed down one sen or 0.58% at RM1.71 today, with 1.3 million shares done, bringing its market capitalisation to RM3.33 billion.