The United Motors Lanka PLC (UML) Group says it turned in a strong performance in the first half of 2010/11 posting a pre-tax profit of Rs. 309 million on a turnover of Rs. 3.6 billion.
Group turnover grew by 50.4% from the same period of the previous year mainly owing to the recent reductions in import taxes which has resulted in a significant increase in passenger vehicle sales during the second quarter.
Post-tax profit at the group was Rs.194.7 million which is an increase of Rs.287.7 million (309%) from a post tax loss of Rs. 92.9 million for the first half of the previous year.
Chanaka Yatawara, Chief Executive Officer / Executive Director said in a statement that the growth came from a combination of increased sales, reduction of working capital cost and overall rationalisation of expenses in all areas.
Main firm, UML said it also performed exceptionally well achieving a pre tax profit of Rs. 142 million for the first half of the current year compared with the previous year loss of Rs. 23 million for the same period.
The company’s spare parts and workshop divisions have also shown strong growth through its main workshop and strategically located branch network.
In the area of new business, the group has added to its portfolio, the TVS Three wheeler from India in December 2009 through its joint venture company TVS Lanka (Pvt) Ltd, which has shown a very good demand island wide within a short period of time. In addition the fully owned subsidiary Unimo Enterprises Ltd has introduced the JMC commercial truck range from China, which is expected to perform well due to its high quality and competitive pricing.