KUALA LUMPUR (May 28): DRB-Hicom Bhd saw a sharp drop of 46% in net profit at RM89.9 million in its final financial quarter ended March 31, 2015 (4QFY15), due to lower profit contribution from certain companies in the automotive and services sectors.

Its earnings per share (EPS) shrunk to 4.65 in 4QFY15, from 8.6 sen in the previous corresponding period. Revenue fell 23% to RM3.2 billion, from RM4.16 billion.

Despite the substantial decline in earnings, DRB-Hicom declared dividend per share of 4.5 sen, maintaining the total dividend declared for the financial year to six sen.

For the full financial year ended March 31, DRB-Hicom posted accumulative net profit of RM300.28 million, down 35% from RM462.16 million the year before. Revenue came in lower at RM13.68 billion, against RM14.2 billion. EPS contracted to 15.53 sen, compared with 23.91 sen the year before.

The group stated the decline in revenue was mainly attributable to lower sale of motor vehicles during the quarter under review.

The drop in the services sector was also due to the absence of revenue from the insurance business, following the disposal of the insurance subsidiary company, Uni Asia General Insurance Bhd (UAG), in July last year.

“In the property, asset and construction (PAC) sector, the unfavourable variance in revenue was because of the one-off disposal of certain parcels of land, mounting to RM485.3 million in the corresponding quarter,” it stated.

The group said despite the disposal of UAG, and the challenging business in the automotive and property sectors, its performance was reinforced by increased contribution from the defence, aero-structure, logistics and the solid waste management sectors.

DRB-Hicom added that it would continue marketing efforts to expand and sustain its revenue streams, while remaining vigilant on costs and risk management.

“This includes more aggressive introduction of new models for all marques marketed by the group, and the launch of new property development projects in Klang Valley and the Iskandar region.

“Notwithstanding the challenging market conditions, the group remains positive in its outlook and performance for the forthcoming financial year ending March 31, 2016,” it said.