Sri Lanka’s United Motors net down 61-pct

ECONOMYNEXT – Profits at Sri Lanka’s United Motors Plc, which has agencies for Mitsubishi and Perodua, fell 61 percent to 226 million rupees in the December 2016 quarter amid flat revenues and narrower margins, interim accounts show.

The group reported earnings of 2.24 rupees per share for the quarter. In the nine months to December the group reported earnings of 8.57 rupees per share on total profits of 861 million rupees, which were down 41 percent.

Sri Lanka’s car imports plunged in 2016 amid tax and interest rates hikes and an administrative credit squeeze.

Vehicle registration data shows steep falls in sports utility vehicles as Mitsubishi Montero and Outlander. However smaller Perodua vehicles sales have been resilient, according to data compiled by JB Securities.

Revenues at United Motors rose 4.1 percent in the December quarter to 4.8 billion rupees, but cost of sales grew at a faster 15 percent to 3.9 billion rupees, shrinking gross profits 26 percent to 895 million rupees.  (Colombo/Jan31/2017)