United Motors Group records Rs. 1.6 b profit after tax

Wednesday, 9 July 2014 00:35 - - {{hitsCtrl.values.hits}}

Despite the auto industry shrinking by 26%, the UML Group demonstrated a relatively strong performance in the face of market challenges and also made headway in new growth segments that presented opportunities. While the year ended 31 March 2014 was very challenging for the automobile industry the company net profit reached Rs. 1.5 billion, a decrease of 21% compared to last year while the UML Group was able to record a profit after tax of Rs. 1.6 billion, a drop of 20% from the previous year. The Group’s earnings per share for the year under review was Rs. 23.90, which was a 20% drop from Rs. 29.92 achieved last year. The strong balance sheet UML Group has is reflected in the Rs. 120.37 NAV per share achieved as at 31 March 2014. Chief Executive Officer/Executive Director Chanaka Yatawara mentioned that given the unpredictability and limited growth opportunities within the market for new vehicles, United Motors adopted a two-pronged strategy of targeting new and emerging market segments and the growing market for after sales services for existing vehicles.

The company strengthened its presence in the emerging eco-friendly automobile market. In the previous year the company introduced the Mitsubishi Mirage which had much lower emission levels and fuel consumption than traditional petrol vehicles. During the current year the company introduced a similar eco- friendly sedan named Attrage providing customers with two cost effective and environmentally friendly vehicle options from Mitsubishi. The company is making plans to expand its environmentally friendly line of products during the new financial year. The company also entered the heavy truck segment for the first time with the new range of Fuso trucks ranging from nine to 25 tons, manufactured with German and Japanese expertise, each of these models have endured extensive testing including over nine million km of driving to ensure high standards and optimum loading while maximising fuel efficiency. Further the Group entered the luxury car category, with the legendary MG expanding the Group’s range of vehicle brands even further. It is the first all-new MG to be launched in 16 years and also the 21st century incarnation of a 90-year-old brand that was once a byword for speed, open-topped and carefree about British sports cars. The decision to assemble vehicles within the country has also helped to reduce the impact of unpredictability of import taxes of the cost of vehicles. The Group’s priority now is to further strengthen its 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. The primary workshop made a significant contribution in terms of both financial value and ensuring that customers receive industry best after sales services. 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 world renowned brands, including Mitsubishi passenger and Fuso commercial vehicles from Japan, Perodua compact cars from Malaysia, MG cars, 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.