United Motors profits up by 150%

United Motors has completed a successful half year ended September 30 2005 both in terms of revenue and profitability.

United Motors Lanka Ltd (UMLL) recorded a turnover of Rs. 1,275.2 million, (an increase of 40.8% over the first half of the last financial year) and a Profit After Tax of Rs. 105.6 million which is an increase of 150% over the corresponding period of last year. Chairman of the company, M.J.C. Amarasuriya, in his half yearly review, said.

The subsidiary companies collectively earned a profit of Rs. 13.8 million for the Group. It is noteworthy that the Consolidated Profit After Tax of Rs. 119.4 million was 183% above that of the first half of the previous financial year and in the highest recorded profit for any financial year.

The parent company, UMLL is the sole distributor of brand new Mitsubishi vehicles, genuine Mitsubishi spare parts, Valvolene lubricants and Eagle Care products in Sri Lanka.

Despite last year's phenomenal increase in import taxes which pushed vehicle prices up by 30 to 60%, the company fared exceptionally well on account of its strong marketing in the growing commercial segments and successful cost management strategies.

After sales service also recorded substantial growth with spare part sales improving over the first half of last year by 21.5% and revenue from repairs and services at the company's state of the art workshop, increasing by 33.2%. The business volumes of Valvolene lubricants and car care products have also doubled during the period.

TVS Lanka Ltd. fared considerably better in the first half of 2005/06, achieving a PAT of Rs. 41.3 million as against Rs. 4 million earned in the first half of last year. UMLL's fully owned subsidiaries also succeeded in improving their performance in the period under review.

Orient Financial Services Corporation earned a profit of Rs. 7.7 million and increased its new business by 65%.

Due to the growth achieved in a significantly short time and the increasing business potential, this company is in the process of restructuring its capital, Unimo Enterprises Ltd. maintained last year's profit level with improved sales of all its products whilst Orient Motor Company succeeded in reducing its losses by 29%.