KUALA LUMPUR (Nov 29): DRB-Hicom Bhd has posted RM11.42 million in net losses for the second quarter ended Sept 30, 2018 (2QFY19), against a net profit of RM742.6 million a year ago. 

This, the group said, was due to the absence of a research and development (R&D) reimbursement grant of RM1.1 billion obtained for Proton in the previous second quarter.  

Also contributing to the net loss was lower performance of certain companies in the automotive and services sectors, DRB-Hicom said in a filing today. 

As such, the group incurred losses per share of 0.59 sen in the quarter, from earnings per share of 38.41 sen a year ago. It was DRB-Hicom’s fourth consecutive quarterly loss. 

Quarterly revenue fell 1.74% on-year to RM3.18 billion, from RM3.24 billion previously. “The automotive and services sectors performed better, whereas the property sector recorded lower sales,” DRB-Hicom said.  

For the six-month period ended Sept 30, 2018 (1HFY18), DRB-Hicom booked a loss of RM78.02 million, compared with a net profit of RM559.8 million in the same period last year. Half-year revenue fell 8.34% to RM5.84 billion, from RM6.37 billion.  

According to DRB-Hicom, its services segment saw revenue grow a marginal 1.5% to RM2.23 billion from RM2.2 billion previously, thanks to its banking and waste management businesses. 

Automotive segment’s revenue fell 10.25% to RM3.33 billion. “The decrease was largely due to sales revenue foregone, following the disposal of Lotus and also lower sales of vehicles by Proton,” DRB-Hicom said.

Revenue from property segment too declined 39.75% to RM278.91 million, mainly due to lower revenue recognised from construction-related projects.

“This reduction reflects the completion of Phase 1 of the Integrated Customs, Quarantine and Security (ICQS) Complex in Bukit Kayu Hitam. The ICQS Complex at the northern border of the country is undertaken by Northern Gateway Infrastructure Sdn Bhd, a subsidiary of DRB-Hicom,” it added. 

On prospects, DRB-Hicom said it is banking on the launch of Proton’s maiden SUV this December.

“Within the group’s automotive sector, Proton recorded a revenue of RM1.05 billion in the three months to Sept 30, 2018, rising more than 70% against the previous quarter.

“The launch of the Proton X70 together with other product launches by marques within the group is expected to improve the overall sales performance of the automotive sector,” it said. 

Also in the pipeline is the proposed divestment of its solid waste management business Alam Flora Sdn Bhd for RM944.61 million, as well as other non-industrial property assets. 

“While the turnaround of Proton remains on track, the group’s performance for the financial year ending March 31, 2019 will be contingent on the improved financial performance of the national carmaker,” it added.

Shares of DRB-Hicom fell 2 sen or 1.04% to RM1.90 yesterday, giving the group a market capitalisation of RM3.67 billion.