KUALA LUMPUR (Dec 30): Konsortium Transnasional Bhd (KTB), which expects to slip into a loss in financial year 2016, is calling on the government to increase bus fares to cushion increasing operational costs experienced by bus companies.

KTB chairman and managing director Tan Sri Mohd Nadzmi Mohd Salleh said today the company's profit margin is currently under pressure for increase in operational costs due to the implementation of the goods and services tax (GST) and the weaker ringgit.

He said an increase in bus fares would help the company to offset operational costs related to the purchase of spare parts and phasing out of old buses.

"The government had approved for a 22.6% hike in bus fares to be implemented in May this year but pulled it back due to the increase in cost of living," he said on the sidelines after a signing ceremony between Nadicorp Holdings Sdn Bhd and the Malaysian Rubber Board for the trial use of environmental-friendly rubber tyres.

"But it is difficult for companies like us to cope with the current situation. If it persists, we could record losses next year," he added.

School bus operators feeling the pinch of the GST and weaker ringgit are reportedly contemplating increasing bus fares from next month.

According to KTB's filing with Bursa Malaysia, net profit declined 24% to RM633,000 or 0.16 sen per share in the third quarter ended Sept 30, 2015 (3QFY15) from RM833,000 or 0.21 sen per share in the previous corresponding period. Revenue decreased 11.41% to RM46.62 million in 3QFY15 from RM52.6 million in 3QFY14.

For the first nine months of financial year 2015 (9MFY15), net profit slumped 52.14% to RM1.79 million or 0.45 sen per share from RM3.74 million or 0.93 sen per share in the previous corresponding period.

Revenue declined 24.69% to RM129.69 million in 9MFY15 from RM163.36 million in 9MFY14.