Financial Times - United Motors profits up 95.2%, strong growth

United Motors profits up 95.2%, strong growth

United Motors Lanka Limited (UMLL )posted its best results last year with a profit of Rs. 247.3 million compared to Rs.125.2 million in 2004, yielding a return of 14.5 percent on shareholder's funds.

The consolidated results of the Group were also the highest achieved so far as most of the subsidiaries improved on their previous year's performance.

Group profit after tax and minority interest of Rs. 288.8 million was an improvement of 95.2 percent from 2004. Nearly all the subsidiary companies succeeded in increasing their profitability last year, whereas the shareholders funds in UMLL increased from Rs.1. 4 billion to Rs.1. 7 billion, rendering an increase of 13.6 percent due to the accumulation of undistributed profits.

The company said that import statistics released by government indicates that the volume of brand new Japanese vehicles imported to Sri Lanka increased by around 10 percent in 2005 and Mitsubishi's share in this market increased from 18 percent in 2004 to 30 percent in 2005.

The company further said that TVS Lanka (Pvt) Ltd, UMLL's Joint Venture with T.V. Sundram Iyengar & Sons of India has, within a period of 3 years, increased market share in Sri Lanka's two wheeler market with the Indian made TVS motorcycle acquiring the second largest market share in Sri Lanka. TVS achieved a turnover of 2.4 billion, which is an increase of 58.5 percent over last year. TVS achieved an after tax profit of Rs. 57.9 million, an increase of 139 percent over last year.

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