Wednesday Nov 27, 2024
Wednesday Nov 27, 2024
Monday, 16 May 2011 02:09 - - {{hitsCtrl.values.hits}}
United Motors Lanka Plc (UML) has enjoyed a massive 522.5% increase in net profit attributable to equity holders to Rs. 902.5 million in the just concluded 2010/11 financial year.
Of the full year figure, Rs. 344 million had been generated in the fourth quarter ended on 31 March, 2011.
Consolidated pre-tax profit was Rs. 1.37 billion, up by 929% from Rs. 134 million in 2009/10 financial year whilst post-tax profit was Rs. 906.6 million, up by 520% from Rs. 146.3 million in the previous year.
Profit from operating activities in 2010/11 had increased by 105% to Rs. 1.56 billion. Group revenue had risen by 87/5% to Rs. 10.9 billion. That of the Company was Rs. 4.9 billion, up by 63% over 2009/10 financial year. Pre-tax profit figure had been supported with Rs. 115.5 million by way of other income for the Group up from Rs. 111 million last year and Rs. 152 million for the Company up from Rs. 59 million a year ago.
Company’s operating profit grew by 131% to Rs. 741 million whilst pre-tax profit rose by 286% to Rs. 735 million and post-tax profit by 328% to Rs. 519 million.
The Company’s flagship vehicle brand is Mitsubishi whilst the Group also represents several other brands such as TVS, Perodua cars, Zotye Nomad SUV, JMC cabs and Unimo and Escorts tractors in addition to import and distribute Yokohama and Apollo tyres as well as distribution of Valvoline lubricants.
In 2010/11 revenue from sale of vehicles had increased to Rs. 8.53 billion, up from Rs. 3.56 billion in the previous year. Pre-tax profit from this business segment was Rs. 1.19 billion as against Rs. 201.6 million in 2009/10. Spare parts business had generated Rs. 1.2 billion revenue as against Rs. 981 million last year whilst its profit rose from Rs. 261.8 million to Rs. 323.4 million. Revenues from repairs and services grew from Rs. 687 million to Rs. 815.4 million and profits amounted to Rs. 115.8 million, up from Rs. 95 million in 2009/10. Tyre business of UML Group had marginally improved with revenue increasing from Rs. 405.4 million to Rs. 410.2 million whilst profit had declined from Rs. 77.2 million to Rs. 63.4 million.
Lubricants and other business revenue had improved from Rs. 366 million to Rs. 437.7 million but profits had dipped from Rs. 475.7 million to Rs. 289 million. Finance leasing business revenue had declined from Rs. 457 million in 2009/10 to Rs. 276 million but profits had increased to Rs. 46 million from Rs. 40.7 million a year earlier.
In February 2011, UML disposed of its wholly owned subsidiary Orient Financial Services Corporation Limited for Rs. 230 million. As per the sales and purchase agreement between United Motors Lanka PLC and the purchaser entered, the corporate guarantees issued by United Motors Lanka PLC on behalf of Orient Financial Services Corporation (OFSCL) totalling to Rs.647.8 million of which overdraft amounting to Rs.250 million and term loan facilities of Rs.397.8 million obtained by OFSCL are to be substituted within 3 months and 6 months respectively from the date of the agreement.
UML’s share price closed the financial year 2010/11 at Rs. 152 whilst the highest for the last quarter was Rs. 275 whilst the lowest was Rs. 85. In 2009/10 financial year the closing price was Rs. 90 whilst the highest and lowest for the 4Q was Rs. 90 and Rs. 33.
