United Motors Lanka PLC, the agents for Mitusbishi and several other leading auto brands in the country recorded net profit of Rs.902 million for the financial year ended March 31 against Rs.146 million net profit reported in the previous year.
The company achieved a turnover of Rs.10.9 billion and a recorded a pre tax profit of Rs.1.38 billion for the year ended 31March 2011.
According to Chanaka Yatawara Chief Executive Officer / Executive Director United Motors Lanka PLC “This is the highest ever profit recorded by the group, where the current year profit after tax of the group and company increased by 520% and 328% respectively as compared to the previous year”.
He further stated that the year under review saw a 48% increase in Mitsubishi vehicle sales, which was supported by increased sales of Mitsubishi spare parts and workshop services.
The increase in profitability was due to a multitude of factors, including an increase in vehicle sales due to reduced import duties on motor vehicles, reduction in interest rates, expansion of the branch network for greater accessibility of products and services, and strong cost management.
Unimo Enterprises Ltd which is a fully owned subsidiary of United Motors Lanka PLC showed a very robust turnaround, recording a sale of 1,716 units of its fast moving Perodua Viva, which is predominantly in the under 1000 cc category. Viva sales showed an increase of 808% compared to last year. Its other divisions too performed better than the previous year with an encouraging turnaround by its Chinese Division which markets JMC commercial trucks, Zotye mini Sports Utility Vehicles and its recently launched DFSK mini trucks.
UML’s main joint venture, TVS Lanka, also delivered significant profits, contributing Rs. 194 million to the Group’s profit. In the year ahead the company is confident that the momentum would continue due to favorable economic conditions and infrastructure development of the country, and the expectation that the current tax structure will remain.
In addition, issuance of permits to senior government officials is expected to bring in incremental income to United Motors and its subsidiary Unimo Enterprises Ltd.
The group is also considering a state-of-the-art assembly facility for TVS Lanka which will accommodate TVS two wheelers and three wheelers under one roof, to be built in the company’s 6 acre property at Kaduwela
Unimo Enterprises Ltd is also expected to perform well in view of the spectacular demand for its Perodua vehicles, its local assembly operation for the Zotye brand and its other Chinese products that have proven to be a popular choice for commercial vehicles.
source - www.dailymirror.lk
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