UML records pre-tax profit of Rs. 309 m

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% 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%) from a post tax loss of Rs. 92.9 million for the first half of the previous year.

According to Chanaka Yatawara, Chief Executive Officer/Executive Director, 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.