DRB-HICOM PROFITS WILL DECREASE IN THE FIRST QUARTER DUE TO HIGHER TAXES, PROFIT BEFORE TAX INCREASES BY 5.0 PCT

KUALA LUMPUR, Masy 23 (Bernama) – DRB-Hicom Bhd’s net profit fell 15.2% to RM91.54 million for the first quarter ended March 31, 2024 from RM107.91 million a year earlier on higher tax burden .

However, the group, which operates in six key sectors, recorded a 5.0 per cent increase in profit before tax (PBT) to RM210.76 million from RM200.77 million previously, mainly due to improved performance of the automotive and services sectors.

Revenue rose 5.6 per cent to RM4.33 billion from the previous RM4.10 billion, with all major sectors showing improved performance, it said in a filing with Bursa Malaysia today.

The owner of brands such as Proton and Modenas said the automotive sector remained its main revenue driver, recording a 0.8% increase in revenue to RM3.05 billion, mainly due to higher sales volume.

The group’s banking sector, represented by Bank Muamalat Malaysia Bhd, recorded a 34.6% increase in revenue to RM510.41 million due to increased financing revenues, driven by an increase in financing volumes linked to sustainable growth and a growing customer base.

“Additionally, an increase in the Overnight Policy rate from 2.75 percent. up to 3.00 percent in May 2023 contributed to the sector’s good performance,” the media statement said.

Meanwhile, the aerospace and defense sector recorded an 11.4 per cent increase in revenue to RM187.79 million, mainly due to increased product shipments of single-aisle and aircraft parts.

The postal sector, represented by Pos Malaysia Bhd, posted 4.6% higher revenue of RM291.23 million, led by the postal business.

The services sector, which covers a range of services from vehicle inspection to air freight, improved its revenue by 6.0 per cent to RM216.65 million. The biggest impact was on the on-board catering business, which is characterized by a larger number of prepared meals, and ground service, which is part of the growing number of flights.

On the outlook, DRB-Hicom said it maintains a “satisfactory outlook” for the financial year ending December 31, 2024.

— BERNAMA

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