KUALA LUMPUR: DRB-Hicom Bhd's net profit fell 50.8 per cent to RM70.80 million in the third quarter (3Q) ended September 30, 2023 from RM143.95 million in the same period last year in the absence of income from the sale of a subsidiary company.
DRB-Hicom recognised RM119.51 million income from the disposal of Lotus Advance
Technologies Sdn. Bhd. in the corresponding quarter in 3Q 2022.
The group's revenue also declined 12 per cent to RM4.00 billion in 3Q 2023 from RM4.54 billion previously, with lower revenue from automotive, aerospace and defence, as well as the postal business sectors.
"In the automotive sector, Proton faced challenges from new car model launches by competitors and thus achieved lower sales in the current quarter," it said in a filing with Bursa Malaysia Securities Bhd today.
For the cumulative nine-month period ended September 30, 2023 (9M23), DRB-Hicom's net profit slipped to RM212.42 million from RM287.77 million last year, while revenue increased to RM12.08 billion versus RM11.16 billion in the same period a year ago.
This is driven by the automotive sector, which reported a 9.4 per cent increase in revenue compared with the corresponding period last year, mainly from Proton as well as DRB-Hicom's automotive distribution companies, and manufacturing and engineering companies.
On prospects, DRB-Hicom said the group remains steadfast in executing its strategies to drive the business forward.
In the automotive sector, it said Proton will penetrate the niche local EV market by featuring advanced technology within its line-up in the coming years.
"Other marques within the Group's stable, such as Honda, Mitsubishi and Isuzu, will further create market interest with the introduction of exciting new models that are currently in the pipeline," it said.
Meanwhile, DRB-Hicom said the group's other business sectors i.e. banking, aerospace & defence, services and properties will remain focused on preserving value and intensifying sustainability efforts.
In addition, it said the postal sector continues its transformation journey, emphasising digitalisation efforts to streamline postal operations, improve customer experience and develop new business potentials.
"These efforts aim to strengthen resiliency in responding to challenging market conditions.
"The group expects satisfactory performance for the financial year ending Dec 31, 2023," it added.
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