KUALA LUMPUR (Nov 28): DRB-Hicom Bhd reported a net profit of RM40.08 million for the three months ended Sept 30, 2019, compared with a net loss of RM11.42 million a year ago, boosted by the better fortunes of its subsidiary Proton Holdings Bhd.

The group said its better profitability was helped also by an exceptional gain on disposal of its partial equity interest in Motosikal dan Enjin Nasional Sdn Bhd (Modenas) amounting to RM33.59 million, although its services sector was affected by the unfavourable results of Pos Malaysia Bhd.

Revenue rose 12.9% on-year to RM3.59 billion, from RM3.18 billion previously, contributed mainly by its automotive sector, its exchange filing today showed.

For the six-month period ended Sept 30, 2019, DRB-Hicom registered a net profit of RM86.29 million, versus a net loss of RM78.02 million in the corresponding period last year. Cumulative revenue rose 20.4% to RM7.03 billion, from RM5.84 billion previously.

DRB-Hicom, which changed its financial year end from March 31 to Dec 31, said it expects to achieve satisfactory operating results for the full financial year that covers a nine-month period ending Dec 31, 2019.

The group said it has been steadfast in improving its financial performance under the current challenging environment.

"Backed by its well performing automotive sector, the national carmaker Proton has underpinned this sector's growth with its market share increasing to 15.8% year-to-date from 10.8%. Apart from its first-ever sports utility vehicle, the X70, demand for other revamped models such as the Saga, Persona, Iriz and Exora has also boosted the brand's appeal to the market.

"This has enabled Proton to register as the second best-selling automotive brand in the country. Meanwhile, the group's other automotive marques will seek to gain momentum with year-end sales promotions," DRB-Hicom said.

For its other businesses, DRB-Hicom said the focus will remain on prudent cost management efforts and improving operating efficiency.

Particularly, for Pos Malaysia, the group said the challenging landscape is being managed with the application on tariff rebalancing which is expected to conclude positively to improve its overall performance.

DRB-Hicom shares closed 4 sen or 1.65% lower at RM2.39, with 2.95 million shares traded, valuing it at RM4.62 billion.