KUALA LUMPUR, Nov 23 — DRB-Hicom Bhd recorded a lower net profit of RM70.80 million in the third quarter ended September 30, 2023 (3Q 2023) from RM143.95 million in the same period last year.

Revenue declined to RM4.00 billion against RM4.54 billion previously, mainly derived from automotive, aerospace and defence, as well as the postal business sectors, it said in a filing with Bursa Malaysia.

For the cumulative nine-month period ended September 30, 2023 (9M 2023), DRB-Hicom’s net profit slipped to RM212.42 million from RM287.77 million, while revenue increased to RM12.08 billion versus RM11.16 billion in the same period a year ago.

It said the group’s performance in 9M 2023 was mainly 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.

Proton continued its upward sales trajectory by 14.1 per cent or 116,832 units sold in 9M 2023.

Proton Saga remained its best-selling model with 51,484 units delivered, followed by Proton X50 sports utility vehicle (SUV) and Persona, with a cumulative sales performance of 43,574 units.

Proton’s first new energy vehicle, the mild hybrid Proton X90 SUV, has successfully attracted more than 4,000 new owners since its launch in May 2023.

The aerospace and defence sector, however, recorded lower revenue mainly due to lower delivery of defence products, which was partially offset by the higher delivery of single-aisle and certain aircraft parts.

The banking sector achieved higher revenue primarily due to higher financing income led by the growth in financing volume attributed to sustainable growth and expanding customer base as well as a rise in the Overnight Policy Rate to 3.00 per cent in the current period.

The services sector recorded higher revenue mainly due to higher revenue driven by the in-flight catering business with a higher number of meals prepared, as well as higher revenue from automotive logistics and marine business.

On prospects, DRB-Hicom said the group remains steadfast in executing its strategies to drive the business forward.

In the automotive sector, Proton will penetrate the niche local electric vehicle market by featuring advanced technology within its line-up in the coming years.

The group’s other business sectors, namely banking, aerospace and defence, services and properties will remain focused on preserving value and intensifying sustainability efforts.

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 December 31, 2023,” it added. — Bernama