This article first appeared in The Edge Financial Daily, on April 20, 2016.

KUALA LUMPUR: Defying a soft automotive market brought on by weak consumer sentiment, Cycle & Carriage Bintang Bhd saw its net profit rise 43.1% to RM9.5 million in the first quarter ended March 31, 2016 (1QFY16), from RM6.64 million a year ago, as its revenue improved on higher sales of lower-priced vehicles.

Revenue for the quarter under review came in 19.8% higher year-on-year at RM315.14 million, from RM263.12 million.

In a statement accompanying its results, Cycle & Carriage chairman Haslam Preeston said demand remained healthy in 1QFY16, with unit sales up 50%, despite a softer market that reflected a weaker economic environment.

“The level of sales growth was enhanced by slower first-quarter sales in 2015, in anticipation of tax changes arising from the introduction of [the] goods and services tax,” he said.

He said although the group recorded a 20% increase in unit sales in 1QFY16, revenue on a per unit basis was reduced as the sales mix was weighted towards lower-priced vehicles.

Despite this, he said net profit from Mercedes-Benz operations rose 43% to RM9.5 million.

“Mercedes-Benz unit sales were 50% higher, despite supply constraints for some popular models,” he said, adding that the group’s aftersales division also performed satisfactorily.