UML Group records Rs. 1.6 b PAT

Despite the auto industry shrinking by 26 percent, the UML Group showed a relatively strong performance in the face of market challenges and made headway in new growth segments that presented opportunities.

While the year ending March 31, 2014 was challenging for the automobile industry, the company's net profit reached Rs. 1.5 billion, a decrease of 21 percent compared to last year.

The UML Group recorded a profit after tax of Rs.1.6 billion, a drop of 20% compared to the previous year. The Group's earnings per share was Rs. 23.90 which was a 20% drop from the Rs. 29.92 achieved last year.

The UML Group's strong Balance Sheet is reflected in the Rs.120.37 NAV per share achieved as at March 31.

Chief Executive Officer and Executive Director Chanaka Yatawara said 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.

The company has strengthened its presence in the emerging eco-friendly automobile market. In the previous year the company introduced the Mitsubishi Mirage which has much lower emission levels and fuel consumption than traditional petrol vehicles.

During the year, the company introduced a similar eco-friendly Sedan, Attrage, providing customers with two cost-effective and environment-friendly vehicle options from Mitsubishi.

The company will expand its environment-friendly line of products during the new financial year. The company also entered the heavy truck segment for the first time with a range of Fuso trucks ranging from nine tons to 25 tons, manufactured with German and Japanese expertise. Each of these models had endured extensive testing including over nine million kilometres of driving to ensure high standards and optimum loading while maximising fuel efficiency.

The decision to assemble vehicles within the country has also helped to reduce the impact of unpredictability of import taxes on vehicles.

The Group's priority now is to further strengthen its commitment to the highest levels of service excellence. Its branch expansion has made service facilities more accessible and captured otherwise lost after sales income.