KUALA LUMPUR (May 30): Driven by improved sales of Proton cars, DRB-Hicom Bhd has registered a net profit of RM127.86 million in the fourth quarter ended March 31, 2019 (4QFY19), against a net loss of RM59.41 million in the same quarter last year.

In a bourse filling, the diversified conglomerate said all the key operating companies in the group except for Pos Malaysia Bhd turned in a good financial performance for the current quarter and financial year.

DRB-Hicom's 4QFY19 revenue rose 16.37% year-on-year (y-o-y) to RM3.47 billion versus RM2.98 billion.

However, full year net profit tumbled 71.45% to RM122.87 million from RM430.37 million a year ago, mainly due to higher taxation of RM230.67 million compared to RM91.58 million a year ago. Revenue inched up 1.85% y-o-y to RM12.48 billion from RM12.25 billion.

DRB-Hicom's automotive sector recorded higher revenue of RM7.36 billion versus RM6.90 billion a year ago on the back of higher sales volume. The service sector, consisting of banking and waste management, also reported improved revenue of RM4.58 billion against RM4.49 billion previously.

However, its property division chalked up a reduced revenue of RM540.92 million from RM862.60 million previously on lower revenue recognition from construction related projects.

DRB-Hicom said it would strive towards cost optimisation through prudent management practices across its various businesses and expects to deliver a satisfactory performance for the financial year ending March 31, 2020.

For its automotive businesses, DRB-Hicom said it would continue its growth via launches of new models by marques within the group.

"Positively, Proton has continued its upward momentum following the launch of the X70 which has led to a strong sales performance at the national carmaker. This reflects the return of consumer confidence towards the brand on the back of the quality improvements, and is expected to be sustained with the recent launches of the facelifted Iriz, Persona and Exora models. This will also be boosted by the impending launch of their updated iconic model, the Proton Saga, and the roll-out of the locally assembled version of X70 during the current financial year," it said.

In addition, the group also said the ongoing retail outlet revamp to grow the number of Proton 3S/4S (sales, service and spare parts, and body and paint service) centres nationwide would help to ensure customers would enjoy a higher level of customer service experience with the brand.

At Pos Malaysia, the contraction of traditional mail continues to put pressure on earnings, while in the parcel delivery business, Pos Laju faces challenges from new entrants, including e-hailing parcel services, said DRB-Hicom.

"However, Pos Laju remains the market leader in this segment. Pos Malaysia continues to engage regulators to seek a tariff revision for regulated services, given that the growth of postal service areas places immense pressure on the operating costs. The group is hopeful to yield a positive outcome with the regulators. To improve operational efficiencies and cost optimisation, investments are being undertaken towards automation of the operations as well as using digital technology," said DRB-Hicom.

Shares in DRB-Hicom rose one sen or 0.51% to close at RM1.98, giving it a market capitalisation of RM3.83 billion. Some 4.81 million shares were traded.