KUALA LUMPUR (Aug 28): DRB-Hicom Bhd’s net loss widened to RM306.08 million for the second quarter ended June 30, 2020 (2QFY20), from RM173.27 million for the preceding quarter, as operating loss more than tripled to RM216.96 million from RM62.09 million.
Loss per share fell to 15.83 sen from 8.96 sen, the group’s filing with Bursa Malaysia showed.
This was mainly due to increased losses in the automotive segment and weaker property segment profit, which was slightly offset by better performance in the services and investment holding segments.
Quarterly revenue fell 26.74% to RM2 billion, from RM2.74 billion in the preceding quarter.
This was DRB-Hicom’s weakest quarterly top line since the quarter ended Dec 31, 2011 when it reported RM1.69 billion revenue.
For the six-month period ended June 30 (6MFY20), DRB-Hicom’s net loss stood at RM479.36 million, while revenue totalled RM4.74 billion. There is no year-on-year comparison as the group changed its financial year end from March to December.
DRB-Hicom said revenue was affected by the implementation of the Movement Control Order, coupled with forex loss, recognition of modification loss amid the financing moratorium, and impairment on assets.
On prospects, DRB-Hicom said its ongoing business recovery efforts across all sectors should be reflected in the second half ending Dec 31 (2HFY20).
Among others, Proton sales rebounded in June, with its highest monthly sales ever in July with 13,216 units sold.
Meanwhile, DRB-Hicom said its 53.5%-owned subsidiary Pos Malaysia Bhd is seen benefiting from improved tariff rates and a growing demand for e-commerce.
“With fears of a resurgence of the Covid-19 pandemic and its expected subsequent waves, coupled with the potential of a further weakening economy globally, DRB-Hicom remains cautious on the challenging financial year ending Dec 31, 2020,” it added.
Shares of DRB Hicom rose three sen or 1.49% to close at RM2.04, valuing the group at RM3.89 billion.
Edited by S Kanagaraju