KUALA LUMPUR (May 30): DRB-Hicom Bhd announced a substantially lower net loss of RM328.45 million or 16.99 sen a share for the fourth financial quarter ended March 31, 2017 (4QFY17), 58% lower thn the RM790.76 million or 40.9 sen a share recorded in the previous corresponding quarter.

Its quarterly revenue jumped 32% to RM3.48 billion from RM2.63 billion a year earlier.

In its filing with Bursa Malaysia, the conglomerate, which last week sealed a deal to sell a 49.9% stake in Proton Holdings Bhd, attributed the revenue growth to higher sales revenue by all business sectors of the group.

For the full financial year ended March 31, 2017 (FY17), its annual net loss declined 54% to RM454.4 million from RM992.76 million in the preceding financial year. Annual revenue was slightly lower at RM12.06 billion from RM12.17 billion.

The group attributed the fall in annual revenue to lower sales of motor vehicles and lower percentage of completion of the AV8 project, but was partly mitigated by higher contribution from the services division and property, asset & construction (PAC) division.

Meanwhile, DRB-Hicom said its bottomline benefited from a gain on disposal of Corwin Holding Pte Ltd, lower losses incurred by Proton Holdings Bhd and higher profit contribution from the services sector.

The group said Pos Malaysia Bhd was a major boost as it became a subsidiary of DRB-Hicom during the financial year.

Going forward, it said Pos Malaysia’s logistics and aviation businesses will be key growth drivers for the group, with e-commerce expected to further boost earnings.

DRB-Hicom’s aviation business, under Composite Technology Research Malaysia Sdn Bhd, is expected to grow further, in line with robust demand for aircrafts worldwide.

Meanwhile, the group said the definitive agreement to be signed between DRB-Hicom and Zhejiang Geely Holding Group Co Ltd, which will see the Chinese carmaker acquire 49.9% equity in Proton, is expected to create business synergies and opportunities for the group in the automotive sector.

“As the economic activities continue to gain momentum, the group’s performance for FY18, is expected to improve accordingly,” said the group.

DRB-Hicom fell five sen or 3.14% to RM1.54, giving a market capitalisation of RM3.02 billion.