Sri Lanka’s United Motors earns Rs366 profits amid import controls
ECONOMYNEXT – Sri Lanka’s United Motors Lanka Plc said it had earned profits of 366 million rupees in the September 2020 quarter with a focus on after sales, lubricants and construction equipment amid import controls.
United Motors reported earnings of 3.63 rupees per share for the quarter. In the six months to September the group reported earnings of 1.39 rupees on total profits of 140 million rupees.
Revenues grew 40 percent to 4.3 billion rupees in the September quarter, cost of sales fell 33 percent allowing the firm to expand gross profits 68 percent to 1.0 billion rupees.
Group CEO, Chanaka Yatawara said in a statement that profit growth was driven by from the increase in revenue and margins in vehicle sales, aftersales, and lubricants supported by uninterrupted business operations in the quarter.
“Considering the challenges at the moment with the import ban on vehicles in place, UML will
focus mainly on expanding its after-sales revenue, lubricant business, and the construction
equipment sector,” the firm said.
“While employee safety was the priority in these trying times, the Group continues to take all precautions to protect its employees and the customers’ health and wellbeing.
“On the expenses front, there was a significant reduction in finance cost due to the improved cash position and favorable interest rates. It is noteworthy that, despite strict cost control measures undertaken across the organization, employee salaries remained unchanged.”
Sri Lanka has placed import control on vehicles after money printing and call money rate targeting triggered currency pressure. (Colombo/Nov09/2020)