United Motors Group records Rs. 2 bn PAT

The company net profit reached its highest ever in historyto Rs. 1.89 billion, an increase of 41% in comparison to last year. While the year under review was very challenging for the automobile industry the UML group was able to record a profit after tax of Rs. 2 billion, a drop of 13% from the previous.

Commenting on the financial performance Mr. Chanaka Yatawara,Chief Executive Officer of UML noted that “UML’s success is due to a number of factors. One of our main strengthsis our continuouscost management framework in all our operations;in addition,he pointed to the Group’s success in the market for vehicle permit-holders, stating that “we are able to give our customers the best value for money products”.We are offering the diesel Montero-sport and the Montero for the permits, after successful negotiations with our principles.We understoodearlythat the permit scheme would be a great opportunity during a time where taxes are extremely high for retail sales among other challenges. Today these two vehicles we offer have become the most popularoptions in the market.

He further emphasized that a strategic decision the company had taken a few years ago to minimize the impact from various macro-economic factors that affect the industry had paid off, today we have products for almost every application and requirement. In support of this point, the Group’s provisionalfinancial statement revealed an impressive contribution to its bottom-line from Unimo Enterprises Ltd and Orient Motor Company Ltdwhich are both fully owned subsidiaries of UML, marketing brands such as Perodua, and Chinese brands namely JMC, Zotye and DFSK.

Hesaid that the groups priority now is to further strengthen the Group’s commitment to the highest levels of service excellence, noting that its branch network expansions around the island had made service facilities more accessible and as a result captured otherwise lost after sales income. He underlined the important contribution made by the Group’s primary workshop, not only in terms of financial value but also in ensuring that customers get industry-best after-sales services.

The group’s earnings per share for the year under review was Rs 29.92 which was a 12% drop from Rs.33.91 achieved last year. The strong balance sheet UML has is reflected in the 109.57 NAV per share achieved as at 31st March 2013.

United Motors Group is looking ahead to exciting new possibilities in the year ahead with launches of several new products during the course of the year. It has partnerships with some of the worldrenowned brands, includingMitsubishi passenger and Fuso commercial vehicles from Japan, Perodua compact cars from Malaysia, JMC commercial vehicles, DFSK mini trucks and Zotye compact SUVs from China, Yokohama tyres from Japan, JK tyres and Mak lubricants from India, Valvoline lubricants and Eagle One car care products from the US, and TVS motorcycles and three-wheelers from India.