Sri Lanka’s United Motors tax reversal boosts March profits

ECONOMYNEXT- Profits at United Motors (UML) Sri Lanka rose 9.9 percent to 237.5 million rupees in the March quarter due to a tax reversal, despite trade controls, the firm’s interim financials showed. 

Group earnings per share for the quarter was 2.35 cents. The UML share was trading at 67.10 rupees a share on Wednesday.
Revenue in March fell 21.9 percent from a year earlier to 2.6 billion rupees, while cost of sales fell 22.1 percent to 2.1 billion rupees, leading to gross profits falling 21.1 percent to 571.2 million rupees.
Sales fell with the government increasing duties and restricting credit for vehicle imports amid a depreciating rupee.
Net finance costs grew 47.8 percent to 93 million rupees.
UML received an income tax reversal of 183.9 million rupees, up from a tax charge of 183.9 million rupees.
The group borrowings grew to 3.6 billion rupees in March from 2.7 billion rupees a year earlier. (Colombo/May29/2019)

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