United Motors profit tops Rs 309 million

United Motors Lanka PLC (UML) and its Group Companies posted a pre tax profit of Rs 309 million on a turnover of Rs 3.6 billion for the first half of 2010/11. The group turnover grew by 50.4 percent compared with the same period of the previous year mainly owing to the recent reductions in import taxes which has resulted in a significant increase in passenger vehicle sales during the second quarter. The Group recorded a profit after tax of Rs 194.7 million which is an increase of Rs 287.7 million (309 percent) from a post tax loss of Rs 92.9 million for the first half of the previous year.

Chief Executive Officer and Executive Director Chanaka Yatawara said the growth is a combination of increased sales, reduction of working capital cost and overall rationalisation of expenses in all areas. United Motors Lanka PLC has also performed exceptionally well achieving a pre tax profit of Rs 142 million for the first half of the current year compared with the previous year loss of Rs 23 million for the same period.

The company's spare parts and workshop divisions have also shown strong growth through its main workshop and strategically located branch network.

In the area of new business, United Motors Group has added to its portfolio, the TVS Three wheeler from India in December 2009 through its joint venture company TVS Lanka (Pvt) Limited, which has shown a very good demand island wide within a short period of time. In addition the fully owned subsidiary Unimo Enterprises Limited has introduced the JMC commercial truck range from China, which is expected to perform well due to its high quality and competitive pricing. With the improvement in the macro economic environment and increasing investment opportunities in the country the company sees a promising future for the automobile industry in Sri Lanka.

source - www.dailynews.lk