United Motors Group achieves highest ever Rs 2.27 b PAT
United Motors Group (UML) recorded strong financial results for the
year ending March 31, 2012. During the year under review, the Group
achieved a turnover of Rs. 20.8 billion and a post-tax profit of Rs.
2.27 billion which compares with a post-tax profit of Rs. 907.8 million
achieved during the previous financial year.
Commenting on the financial performance, UML Chief Executive Officer
/ Executive Director Chanaka Yatawara said, ďUMLís increased
profitability was due to a multitude of factors. From an organizational
point of view, UMLís strategic price negotiations with its principals,
strong cost management framework, introduction of new products, and
expansion of the branch network, all contributed to the strong financial
performance. On the macro-economic front, the reduced import duties on
motor vehicles, lower interest rates and government decision to issue
duty free permits created an economic climate conducive to our industry.
Mitsubishi vehicle sales division recorded a sale of 2,652 units up
from 928 units in the previous year which is a 186% increase while the
company also saw a significant increase in the sale of genuine parts and
workshop services as a result of the increased number of vehicles in the
He said UMLís 100% subsidiary, ďUnimo Enterprises Ltd. (UEL) also
showed a strong performance, fueled by the sales of the fast moving
Perodua Viva. During the year, Unimo sold 4,446 units of the Perudua
Viva, an increase of 159%.
ďUELís Chinese division which markets JMC commercial vehicles and
Zotye compact sports utility vehicles also performed exceptionally well
recording a sale of 712 units - up from 139 units last year which was a
UMLís joint venture, TVS Lanka, also contributed significantly
towards the bottom-line, recording two wheeler sales of 37,432 units -
up from 25,494 during the previous year which was an increase of 46%.
The three wheeler segment also showed growth compared to the previous
The groups Earnings per share of Rs. 33.83 which was an increase of
151.9% in comparison to last year reflected the strong performance by
the group for the year.
The excellent results enabled UML to declare the highest ever
dividend payment in its history which was Rs. 9 per share for the year
ended March 31, 2012. The results further pushed up the groupís net
asset per share by 46.56% to Rs.86.81.
However, Yatawara said that this financial year is going to be more
challenging with the recent increases in duty, the devaluation of the
currency and the higher interest rates. UML over the last few years has
focused on building a portfolio of commercial vehicles that cater to
most segments and applications. This segment has not been affected with
the changes in duty, and as a result the company will focus more on this
sector, while the assembly operation and after sales services would also
help minimize the negative impact.
The United Motors Group has a history of over 65 years in the motor
vehicle retail industry and over the years has developed strong
partnerships with world renowned brands which include Mitsubishi
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 and Valvoline lubricants and Eagle One car care
products from USA, TVS two and three wheelers from India. (SJ)