KUALA LUMPUR: DRB-HICOM Bhd has narrowed its loss by 40 per cent in the first quarter ended June 30 2017, on stronger performance from Proton Holdings Bhd and Pos Malaysia Bhd.
The group’s pre-tax loss eased to RM72.72 million from RM121.34 million pre-tax loss in the same quarter in 2016.
DRB-HICOM’s revenue rose 33 per cent to RM3.34 billion from RM2.5 billion in the same period last year.
The group said in a statement yesterday that all sectors recorded an increase in revenue compared to the same period a year ago, with the services sector recording a 72 per cent revenue jump.
The automotive and property sectors saw revenue increase by 19 per cent and 33 per cent respectively.
The automotive sector recorded revenue of RM2.1 billion in the period, boosted by better sales during the Aidilfitri festive period.
The group said Proton and other carmakers in the group offered various promotions to boost sales.
The DRB-HICOM Raya Autofest held in late May also helped to boost sales of the sector.
In the services sector, Pos Malaysia’s courier and logistics business as well as Bank Muamalat largely contributed to a RM1.1 billion revenue in the period. For the property, assets and construction sector, the revenue was recorded at RM97.07 million.
Following the signing of the definitive agreement with Chinese automaker Zhejiang Geely Holding Group Ltd in late June, DRB-HICOM said teams from both companies and from Proton had been working hard towards getting the necessary regulatory approvals for the transaction.
“The deal with Geely will put Proton in a stronger position as the Chinese group will bring along its technology and expertise to Malaysia’s first carmaker in an effort to re-claim the mantle in the domestic car market.
“Reviews by both analysts as well as journalists about the deal and about Geely themselves have been positive, and DRB-HICOM remains confident that the turnaround of Proton will be achieved in due course,” it said.