KUALA LUMPUR (Aug 28): DRB-Hicom Bhd (KL:DRBHCOM) posted a net loss of RM17.08 million in the second quarter against a net profit of RM33.71 million a year ago, mainly due to weaker financial performance in Proton Holdings Bhd and losses from Pos Malaysia Bhd following reduced revenue in its international business.

The group’s pre-tax profit was RM25.93 million during the quarter under review, from RM84.95 million a year ago. Tax expenses stood at RM23.76 million during the quarter, versus RM10.34 million a year earlier.

Revenue for the quarter ended June 30, 2024 (2QFY2024) dropped 5.6% year-on-year to RM3.76 billion from RM3.98 billion, the group's bourse filing on Wednesday showed.

DRB-Hicom said the decline in revenue was primarily due to lower sales volume of Proton vehicles, affected by the scheduled plant maintenance shutdown during the quarter.

Pos Malaysia, meanwhile, posted a 2.7% fall in revenue mainly due to lower international business following the drop in overall mail and international volume.

However, these were partially offset by higher revenue in its aerospace and defence sector, which grew mainly due to increased product deliveries of single-aisle aircraft and certain aircraft parts, said DRB-Hicom.

The group's banking sector, represented by Bank Muamalat Malaysia Bhd, also achieved higher revenue due to higher financing income, driven by growth in financing volume attributed to sustainable growth and an expanding customer base.

The conglomerate did not declare any dividend for the quarter.

For the first half of FY2024, DRB-Hicom posted a net profit of RM74.46 million, almost half of the RM141.62 million it recorded in same period the previous year, as revenue inched up 0.08% to RM8.091 billion from RM8.085 billion.

The group recorded a pre-tax profit of RM236.70 milllion for the period under review.

Looking ahead, DRB-Hicom said it is betting on the newly launched versions of the Proton X50 and X70, with more than 8,000 and 2,000 bookings respectively since their launches in June and August, to improve the revenue of the carmaker.

Besides that, new model launches by other marques within the group, together with the upcoming launch of Proton’s first electric vehicle model, the Proton e.MAS 7, are expected to contribute positively to DRB-Hicom’s automotive sector.

"The group continues to focus on adoption of technology and digital transformation, especially in its banking, postal and services sectors.

"For the other sectors, namely properties, and aerospace and defence, the group remains committed in embracing sustainable practices towards strengthening business resilience," DRB-Hicom said.

Shares in DRB-Hicom ended four sen or 3.15% lower at RM1.23 on Wednesday, giving the group a market capitalisation of RM2.38 billion.