DRB-Hicom posts higher revenue, operating profit

SHAH ALAM: Conglomerate DRB-Hicom Bhd posted higher pre-tax profit of RM701.5 million for FY11 ended March 31, an increase of 6.6% y-o-y on the back of higher revenue of RM6.8 billion versus to RM6.31 billion in the previous year.

Net profit was largely flat at RM472.5 million or 24.44 sen a share compared with RM472.3 million a year ago.  

The group noted that included in the current and previous financial year's result were one-off exceptional items of negative goodwill and gain on disposal of estates respectively. If these items were excluded, operating profit would have increased by 41% y-o-y to RM630.3 million.

The group attributed FY11's higher revenue and profitability to better performance achieved by its automotive and services sectors, which contributed 59% and 39% respectively to its total revenue. For FY11, automotive sector recorded revenue of RM4.05 billion, while the services sector contributed RM2.66 billion to the group's total revenue.

In line with the improved performance, total gross dividend payout for FY11 will be 50% higher at six sen per share compared with four sen allocated in FY10. Note that DRB-Hicom had paid an interim dividend of two sen on March 28 and the balance of four sen will be paid after shareholders' approval.

According to DRB-Hicom's managing director Datuk Sri Mohd Khamil Jamil, the group was able to maintain its growth momentum amid a challenging environment due to the strong emphasis on effective and efficient quality, cost and delivery management.

In a statement, DRB-Hicom said as at March 31, the group's market capitalisation has increased from RM2.24 billion during the previous financial year to RM4.44 billion, while group's net asset per share had gained from RM2.37 to RM2.58. Meanwhile, group's total asset as at March 31 stood at RM28.02 billion against RM25.99 billion a year ago, said Khamil.