12/08/2011 (Business Times) - Delloyd Ventures Bhd, an automotive components manufacturer and oil palm plantation company, expects to grow its revenue and profit by 20 per cent for its financial year ending March 31, 2012.

Managing Director Datuk Seri Tee Boon Kee said the growth will be mainly supported by the comfortable crude palm oil (CPO) price for the company's plantation business and ongoing talks with new auto makers for original equipment manufacturer (OEM) deals.

"We are hoping that the talks would be finalised in the near future and as a result, the cash would flow in the current financial year," he said after the company's annual general meeting today.

Tee said the current main contributor towards the company's revenue was its automotive segment but added that the plantation business would see the fastest growth.
 
"We are expecting to balance the contribution more equally in the coming years, with the plantation business as our main revenue and profit driver in coming years.

For the 15 months financial period ended March 31, 2011, the company recorded a revenue of RM510.319 million compared to the previous 12-month financial period revenue of RM286.271 million.

For the same 15-month period, pre-tax profit was RM84.858 million versus RM44.217 million for the financial year ended Dec 31, 2009.

The company moved its financial year end to March 31, effective the latest financial year end, to be more in synch with its customers and partners.

"Our major clients in the OEM business, Proton and Perodua (Perusahaan Otomobil Kedua) end their financial year on March 31 and so do many companies in Japan, which we deal with," Tee said.

For the financial year ended March 31, 2011 the automotive segment experienced a quantum leap, registering a revenue of RM368.7 million and the plantation business recorded a turnover of RM82.8 million.

Pre-tax profit for the automotive segment and plantation business was at RM52.1 million and RM35.3 million respectively compared with RM31.8 million and RM15.2 million previously.

Even though the current contribution from plantation is still low, the business scored some 90 per cent revenue growth compared to RM43.8 million recorded in the 2009 financial year, Tee said.

He attributed the growth mainly to the acquisition of 14,422 hectares of oil palm plantation in Indonesia. -- Bernama