United Motors records Rs. 2 bln post-tax profit, drop from 2011-12
View(s):The United Motors Company (UMC) net profit reached its highest ever in history at Rs. 1.89 billion in the financial year ending March 31, 2013, up 41 per cent from last year. However due to a very challenging year for the automobile industry the UML group post-tax profit fell by 13 per cent to Rs. 2 billion.
Commenting on the financial performance, Chanaka Yatawara, Chief Executive Officer of UML noted that “UML’s success is due to a number of factors. One of our main strengths is our continuous cost 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’.”
In a media release on the performance, Mr. Yatawara said the permit scheme would be a great opportunity during a time where taxes are extremely high for retail sales among other challenges.
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,” he said. In support of this point, the group’s provisional financial statement revealed an impressive contribution to its bottom-line from Unimo Enterprises Ltd and Orient Motor Company Ltd which are both fully owned subsidiaries of UML, marketing brands such as Perodua, and Chinese brands namely JMC, Zotye and DFSK. Group’s earnings per share for the year under review were Rs 29.92, down from Rs.33.91 last year.
The group said it was looking ahead to exciting new possibilities in the year ahead with launches of several new products during the course of the year.
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