KUALA LUMPUR (May 31): Sime Darby Bhd reported a 5% rise in third quarter net profit at RM699 million from RM663 million a year earlier on higher income from its oil palm plantation besides heavy-equipment and car dealerships

Sime Darby runs its heavy-equipment and car dealerships under the group's industrial and motor divisions respectively. In a statement to Bursa Malaysia today, Sime Darby said group revenue climbed to RM12.45 billion in the third quarter ended March 31, 2017 (3QFY17) from RM10.23 billion.

"Net profit growth was capped by higher tax and perpetual sukuk expenses," Sime Darby said.

According to Sime Darby, its plantation unit registered profit before interest and tax (PBIT) of RM732 million compared to RM92 million. The industrial division recorded a PBIT of RM82 versus RM76 million, it said.

Meanwhile, the motor unit achieved a PBIT of RM126 million compared to RM74 million, according to the group.

Sime Darby's 9MFY17 net profit also rose from a year earlier. The group said net profit climbed to RM1.79 billion from RM1.27 billion while revenue was higher at RM34.88 billion versus RM32.24 billion.

Sime Darby president and group chief executive Tan Sri Mohd Bakke Salleh said: "The group's year-to-date results for FY17 have largely been supported by higher crude palm oil (CPO) prices, averaging at RM2,861/MT in the first nine months compared to RM2,113/MT in the same period last year."

"Stabilising coal prices as well as increased activity in the construction sector in China and Malaysia served as catalysts for the industrial division. Despite tightening regulations and rising import costs, we are encouraged by the motors division's performance, driven by higher demand in key markets," Mohd Bakke said.

Looking ahead, he said Sime Darby's listing plan for its plantation and property division is on track.

"The listing of pure plays is on track," he said.

At 12.30pm today, Sime Darby dipped 2 sen or 0.21% to RM9.32, with some 1.8 million shares traded. Its market capitalisation stood at RM63.38 billion.