KUALA LUMPUR, Aug 28 — DRB-Hicom Bhd registered a net loss of RM306.08 million for the second quarter ended June 30, 2020 (Q2 FY20), with revenue standing at RM2.0 billion, adversely impacted by the movement control order (MCO) which began on March 18, 2020.
There is no year-on-year quarterly comparison for DRB-HICOM in the current financial year due to the change of its financial year end to December from March previously.
In a filing with Bursa Malaysia today, the company said besides the impact of lesser working days in the quarter under review, the group was also affected by the modification loss recorded by Bank Muamalat arising from extending financing moratorium introduced by the government to ease the burden of the rakyat, apart from impairment loss of certain fixed assets.
For the first half of FY20 (H1 FY20), DRB-Hicom recorded a net loss of RM479.36 million, while revenue stood at RM4.74 billion, mainly derived from sales of vehicles and components by PROTON, automotive distribution companies, as well as from manufacturing and engineering, and aerospace companies.
“Automotive sales were boosted by the sales tax exemption announced by the government since early June until December 2020.
“The group’s automotive brands represent about 33 per cent of the total industry volume in Malaysia,” it said, adding that the sector’s revenue in 1H FY20 was RM2.87 billion.
On the services sector, which recorded a revenue of RM1.70 billion in 1H FY20, the company said it was lifted by Pos Malaysia’s performance after it boosted its parcel delivery numbers during the period as Malaysians adjusted their shopping habits towards online purchases.
On the property sector, DRB-Hicom said it recorded a revenue of RM172.24 million in H1 FY20, reflecting the impact of the lower activity in the construction sub-sector as well as lower sales of residential properties during MCO.
On prospects, DRB-HICOM remains cautious on the challenging financial year ending Dec 31, 2020, with fears of a resurgence of the Covid-19 infections and subsequent waves, coupled with the potential of a further weakening economy globally.
“Notwithstanding the above, the group continues to take steps to proactively manage the businesses to ensure that the long-term prospects remain stable,” it said. — Bernama
