United Motors says highest ever first half profits in 2011/12

United Motors Group’s net profit after tax for the half year ended 30 September 2011 rose 396% year-on-year to Rs 966 million, the highest ever net profit the group said it has recorded.

Group revenue rose 147 % from Rs. 3.61 billion for same period to Rs.8.95 billion for the same period of the current year. The company United Motors Lanka PLC (UML) has also achieved significant growth as revenue increased 119% and net profit rose 458 % from Rs. 88 million to Rs.484 million.

United Motors CEO Chanaka Yatawara said that over the last few years UML Group companies have added on a significant range of vehicles and products to its product portfolio. This strategic move has been valuable as the group is now placed better in terms of risk against policy and taxation changes in any one segment, he said.

Source - Sunday Times

United Motors Group’s net profit after tax for the half year ended 30 September 2011 rose 396% year-on-year to Rs. 966 million. This is the highest ever net profit the group has recorded.

The revenue of the group rose 147% from Rs. 3.61 billion for the half year ended 30 September 2010 to Rs. 8.95 billion for the same period of the current year.

The company United Motors Lanka PLC (UML) has also achieved significant growth as revenue increased 119% and net profit rose 458% from Rs. 88 million for the six months ended 30 September 2010 to Rs. 484 million in the same period of the current year.

United Motors Chief Executive Officer Chanaka Yatawara stated that over the last few years, the UML Group of Companies have added on a significant range of vehicles and products to its product portfolio and this strategic move has been valuable as the group is now placed better in terms of risk against policy and taxation changes in any one segment.

The current range includes motorbikes, three wheelers, compact cars, sedans, compact and medium sized SUVs, single and double cabs, vans, lorries, buses, genuine parts, lubricants, workshop facilities and car care products.

He further stated that all companies under the group has performed exceptionally well during the period. With the increasing demand for its vehicles, services and products, UML is also making arrangements to expand its main workshop in Orugodawatte to accommodate more vehicles at any given time, while also increasing workshop capacities at its branches.

The company’s branch network is strategically located in Kandy, Anuradapura, Matara, Kurunegala, Ratnapura, Nuwera Eliya, Nugegoda and the latest is underway in Jaffna. Most of these branches offer sales of all vehicles, spares and service, which allows customers from outstations to get a similar service as that from Colombo in their own areas for added convenience.

The group has over 2,000 dealers island-wide for the distribution of tyres, lubricants, two wheelers and three wheelers, with a representation in both urban and rural areas.

UML’s fully owned subsidiary Unimo Enterprises Ltd. (UEL) too has done extremely well with its range of Perodua passenger cars by doubling its sales volumes by the end of the second quarter of the current year in comparison to the financial year of 2010.

Another contributing factor for the exceptional performance has been the growth in the Chinese vehicle division which has performed remarkably well in its segments due to the quality of products, price and after sales support.

UEL continues to locally assemble the Zotye Extreme compact SUV which has an exemption of excise duty, resulting in it being one of the cheapest 1.3 litre petrol vehicles available in the market today. The company is also looking at increasing capacity of the local plant to meet the increasing demand for this SUV.

The TVS joint venture companies too delivered very strong results with better two and three wheeler sales.
http://www.ft.lk/2012/11/06/united-motors-records-highest-ever-net-profit-of-rs-966-m/#more-118396

Hi Sri, this is last year 2011 Sept 6 months earnings news ? current year FY 2012/13 - 6 months results not out as yet.

next half may not be good.

The Alchemist wrote:Hi Sri, this is last year 2011 Sept 6 months earnings news ? current year FY 2012/13 - 6 months results not out as yet.

Missleading Topic.

http://www.cse.lk/cmt/upload_cse_announcements/971352180840_.pdf

Seen the following today Daily Mirror that new vechile registration slump by 39% in August.. so i am fully agree with econ...next half may be not good.

New motor vehicle registration during the month of August fell 38.7 percent Year-on-Year (YoY) to 27, 766 amidst import duty increase on motor vehicles, the official data issued by the Central Bank showed.

During August the importation of motor cars fell as sharply as 62.8 percent YoY to 1, 880 while importation of three wheelers and motor cycles also fell 38.7 percent and 36.6 percent YoY, respectively.

The importation of buses too slowed down 38.7 percent YoY to 27, 766 while dual purpose vehicle importation saw a 45.5 percent YoY drop during August.
Meanwhile, new vehicle registration for the period from January to August 2012 fell 14.2 percent YoY to 289, 475 with importation of motor cars and dual purpose vehicles sliding most.

Earlier in the year the government imposed new taxes of as much as 100 percent the import value on most of the imported motor vehicles to ease congestion on roads and reduce the oil import bill amidst a balance of payment crisis.