Latest news with #RM17.7
The Sun
5 days ago
- Business
- The Sun
India GDP seen up in January-March on rural demand, state spending
NEW DELHI: India's economic growth likely picked up pace in the January–March quarter, buoyed by stronger rural demand and higher government spending, even as private firms delayed investments amid global uncertainties. GDP is expected to have grown 6.7% year-on-year in the March quarter, up from 6.2% in the previous three months, according to a Reuters poll of economists. Rural consumption improved during the quarter, while urban demand indicators remained mixed, said Gaura Sen Gupta, chief economist at IDFC First Bank Economic Research. Investment was supported by government spending, she said. The Ministry of Statistics will release March-quarter GDP data and provisional estimates for the 2024-25 (April-March) fiscal year on Friday. Some economists expect GDP growth to print significantly above expectations due to a fall in government subsidies. But they caution that true economic growth, as measured by gross value added (GVA), will be lower than the headline number. The calculation of GDP includes indirect taxes and government subsidy payouts which tend to be volatile, while GVA strips out those components. JP Morgan expects March quarter GDP growth at 7.5% year-on-year, while GVA growth is seen lower at 6.7% compared to 6.2% in the previous quarter. India's central bank, the Reserve Bank of India (RBI), expects GDP growth at 6.5% in the fiscal year beginning April 1. At that rate, India remains the fastest growing among major economies and its size could match Japan's this year at US$4.18 trillion (RM17.7 trillion), according to projections by the IMF. Economists said that while global trade tensions have weakened the outlook, India seems relatively insulated thanks to lower goods trade dependence, tax cuts, and low interest rates. 'Despite the various downside risks, we think the policy coordination between the government and the RBI remains the strongest at this juncture,' said Kaushik Das, India chief economist at Deutsche Bank, adding that authorities are showing strong resolve to do 'whatever it takes' to support growth. Retail inflation, which eased to a near six-year low of 3.16% in April, alongside a favourable monsoon forecast, is expected to keep food prices in check and pave the way for another policy repo rate cut by the RBI in June. The government's income tax relief, recent fiscal measures and central bank rate cuts, could lift growth to 6.3–6.8% in the current fiscal year, the finance ministry said. – Reuters
New Straits Times
28-05-2025
- Business
- New Straits Times
UEM Edgenta slumps 16pct after Q1 loss, RHB ends coverage
KUALA LUMPUR: UEM Edgenta Bhd tumbled nearly 16 per cent or 13.5 sen, to 72.5 sen at midday after the company reported a net loss in the first quarter of its financial year 2025. At the last price, the company had a market capitalisation of about RM602.9 million. The share opened at 77 sen, down nine sen from Tuesday's close of 86 sen, and hovered between 72 sen and 77.5 sen throughout the morning session. A total of 7.43 million shares changed hands. The share price has been volatile since the beginning of this year, before peaking at 93 sen on May 16. Year-to-date, the stock has declined 10 per cent. UEM Edgenta's biggest shareholder is Khazanah Nasional Bhd's UEM Group Bhd, which owns 69.14 per cent of the company. This is followed by Urusharta Jamaah Sdn Bhd with a 5.75 per cent stake in the company. RHB Investment Bank Bhd (RHB Research) noted today that it is ceasing coverage on UEM Edgenta due to a reallocation of internal resources. The firm's last call was "Buy" with a target price of RM1.04. It stated that UEM Edgenta's core net loss of RM17.7 million in the first quarter of the financial year 2025 (1QFY25) came in below expectations. This was mainly attributed to a decline in the healthcare support division due to contract termination in Malaysia. The company also recorded lower revenue contribution from the infrastructure services segment, following changes in the scope of work performed during the quarter. "Seasonality factors and higher operational costs – primarily because of increased manpower expenses stemming from the minimum wage hike – also contributed to dragging UEM Edgenta into the red," RHB Research added.
New Straits Times
23-05-2025
- Automotive
- New Straits Times
Analyst reaffirms DRB-Hicom forecasts after profit rebound
KUALA LUMPUR: Public Investment Bank Bhd (PublicInvest) has maintained its earnings forecasts for DRB-Hicom Bhd after the group returned to profitability in the first quarter ended March 31, 2025 (1Q25), driven by stronger sales and improved cost efficiency. "The results were in line with our estimates but fell short of consensus, representing 22.6 per cent and 19.3 per cent of full-year forecasts, respectively," the research house said in a note. PublicInvest reaffirmed its 'Neutral' call on the counter with an unchanged sum-of-parts-based target price of RM0.84. DRB-Hicom posted a net profit of RM17.7 million for the quarter, reversing three consecutive quarters of losses. Excluding non-recurring items, core net profit is estimated at RM28.9 million, reflecting a stronger underlying performance. The improvement was supported by better cost control and healthier sales across most business segments, underscoring the group's operational turnaround. Looking ahead, PublicInvest cautioned that heightened competition, particularly from competitively priced Chinese carmakers, could pressure margins and pose challenges to earnings growth. It also noted that Malaysia's automotive sector is expected to normalise in 2025 after a record-setting year in 2024. The Malaysia Automotive Association reported a five per cent year-on-year decline in total industry volume for the first four months of the year, with full-year sales projected to ease 3.5 per cent to 780,000 units. PublicInvest said the anticipated softer demand is partly due to the easing of order backlogs and a potential increase in excise duties for completely knocked-down vehicles. Other contributing factors include the rollout of targeted RON95 fuel subsidies, and the introduction of a high-value goods tax.
New Straits Times
22-05-2025
- Business
- New Straits Times
DRB-HICOM records RM17.7mil net profit in Q1
KUALA LUMPUR: DRB-HICOM Bhd recorded an 80.6 per cent decline in net profit for the first quarter ended March 31, 2025 to RM17.7 million from RM91.5 million in the same period last year. This was attributed to reduced revenue across major segments, coupled with higher depreciation and amortisation expenses. According to its filing on Bursa Malaysia, DRB-HICOM's revenue for the quarter slipped five per cent to RM4.11 billion from RM4.33 billion. This was mainly impacted by lower sales of Proton vehicles and lower contributions from its manufacturing and engineering businesses. No interim dividend was announced for the financial period. DRB-HICOM said it continues to prioritise digital transformation in core sectors like banking and postal services, aiming to enhance operational efficiency through these ongoing initiatives. "In other areas, including aerospace and defence, services, and properties, the group continues to strengthen business fundamentals to support resilience and long-term sustainability. "The group anticipates a moderate outlook for the financial year ending Dec 31, 2025," it added.
