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Property News

OSK’s 4Q net profit down 19.3% on higher taxes, lower share of profits from associates and JV

KUALA LUMPUR (Feb 27): OSK Holdings Bhd’s net profit for its fourth quarter of financial year 2023 fell 19.29% to RM97.8 million from RM121.17 million a year earlier, despite higher revenue, as its bottom line was crimped by higher tax expenses and cost of sales, and lower share of profits from its associates and a joint venture (JV).
Tax expenses for the September to December quarter (4QFY2023) jumped to RM42.01 million, over three times the RM12.63 million it posted in the corresponding quarter in 2022, according to the diversified conglomerate’s filing on Tuesday, while cost of sales rose RM61 million to RM283.79 million. Share of results from associates and its JV dropped 23% to RM60.96 million from RM78.74 million, while other income dropped 34.22% to RM12.32 million from RM18.73 million.
Revenue for 4QFY2023 rose 27.3% to RM423.54 million from RM332.71 million in 4QFY2022, lifted by higher contributions from all the group’s business segments except for its financial services and investment holding segment.
Its property business saw a 6% rise in profit before tax (PBT) to RM42.34 million, while its industries business saw PBT jumping to RM11.1 million from RM2.14 million, and its hospitality business’ PBT rose to RM1.55 million from RM859,000.
But its investment holding business recorded a lower PBT of RM62.3 million compared with RM75.4 million previously, due mainly to the lower share of profit from RHB Group, which dragged down its financial services and investment holdings segment’s PBT to RM85.28 million from RM91.63 million.
The group recommended a single-tier final dividend of four sen per share for its FY2023, to be approved by shareholders.
For FY2023, OSK recorded a 10.08% rise in net profit to RM466.95 million — its highest since FY2015 — from RM424.2 million a year ago, mainly due to improved profitability of its industries segment. Full-year revenue rose 20.21% to RM1.59 billion from RM1.32 billion previously, supported by improved revenue contributions across all its segments.
For FY2024, OSK remains positive on the prospects of all its segments, adding the group is confident of delivering satisfactory results. 
OSK shares closed six sen or 3.97% lower at RM1.45 on Tuesday, giving the group a market capitalisation of RM3.04 billion.
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Source: EdgeProp.my

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