By Chester Tay
Sime Darby Bhd.'s net profit for its fiscal first quarter ended Sep. 30 grew 14% compared with the same period a year earlier, thanks to stronger vehicle sales in China while results from its Singapore operations also improved due to higher sales of BMW vehicles.
Net profit rose to 281.0 million ringgit ($68.7 million), while revenue grew 15% to MYR10.88 billion, the diversified conglomerate said in a stock exchange filing on Thursday.
The group said the recovery in motor vehicle sales has generally been strong although there remains a risk of resurgence in Covid-19 cases.
Also, Sime Darby noted the risk of disruptions to supply chains that could limit sales as there may not be sufficient inventory for certain new models.
The impact of the coronavirus outbreak in the remaining months of the financial year cannot be accurately estimated at this juncture as there is still uncertainty in the timing of vaccine administration and the possible risk of resurgence in Covid-19 cases, it said.
However, the group said based on the latest results, it is cautiously optimistic its financial performance for the remaining of current fiscal year would be satisfactory.
Write to Chester Tay at firstname.lastname@example.org
(END) Dow Jones Newswires