SHAH ALAM: DRB-Hicom Bhd recorded a pre-tax profit of RM285.71 million for the first six months of FY2023, a 22.5% increase from RM233.16 million in 1H FY2022. This is on the back of RM8.09 billion in revenue for 1H FY2023 which represents a 22.1% increase against RM6.62 billion recorded in the corresponding period ended June 30, 2022, from sustained performance especially in the group’s automotive and banking sectors, as well as improvements in other sectors.
For the current quarter ended June 30, 2023, the group’s pre-tax profit stood at RM84.95 million with a revenue of RM3.98 billion.
The group’s performance in 1H FY2023 was mainly driven by the automotive sector, in particular by Proton as well as DRB-Hicom’s automotive distribution, and manufacturing and engineering companies, which registered a 27.8% increase in revenue (1H FY2023: RM5.87 billion; 1H FY2022: RM4.6 billion).
During this period, Proton recorded an impressive 28.6% increase in sales volume or 77,321 units, with Saga, X50 and Persona contributing more than 80% of Proton’s total sales volume. Proton’s first new energy vehicle, the X90, continued to garner strong local demand to become the new D-segment SUV leader. Other marques within the group, such as the all-new Honda WR-V, is also taking the lead in the small SUV market with over 2,500 bookings within a month of its launch.
The banking sector recorded a 37.3% increase in revenue (1H FY2023: RM806.77 million; 1H FY2022: RM587.69 million) primarily due to higher financing income led by the growth in financing volume. This was attributed to sustainable growth and expanding customer base as well as the rise in the overnight policy rate to 3% in the current period against 2% in the corresponding period.
Revenue for the services sector increased by 13.3% (1H FY2023: RM405.06 million; 1H FY2022: RM357.56 million) driven by the in-flight catering business and new contracts secured by the logistics business.
Revenue from the properties sector also increased by 20.6% (1H FY2023: RM139.63 million; 1H FY2022: RM115.76 million) mainly due to higher revenue recognised from property construction projects, which was partially offset by lower revenue from development projects.
Revenue from the aerospace & defence sector improved slightly by 1.1%, while the Postal sector reported lower revenues in 1H FY2023 compared to 1H FY2022.
Overall, demand for the group’s offerings within the automotive sector remains healthy. The group will continue to execute plans to enhance product ranges and service levels, including entry into the Malaysian EV market.
To ensure sustainable growth, the group will continue to strengthen operational efficiency and cost management initiatives for its other core sectors of aerospace and defence, banking, services and properties. Postal sector remains on track in its transformation roadmap, leveraging on technology to enhance customer experience and continue to adopt prudent cost control discipline.
The group expects a satisfactory financial performance for the financial year ending Dec 31, 2023 as compared to the previous year.
