United Motors records Rs.366 million Group Profit in Q2 despite challenges in the Automobile sector
UML Group recorded a profit of Rs.366 million for Q2 compared to Rs.13.5 million in Q2 for the financial year 2019/20. The recorded Group revenue was Rs.4.3 billion for the quarter, up from Rs.3.06 billion in the comparable period last year. The year to-date Group profit recorded was Rs.140 million compared to a loss of Rs.185 million during the comparable period, the previous year. The second-quarter EPS was Rs.3.63 while NAV as of 30th September 2020 has risen to Rs.128.24.
Group CEO, Chanaka Yatawara said that the profit growth was driven by all-round performance from the increase in revenue and margins in vehicle sales, aftersales, and lubricants supported by uninterrupted business operations. 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.
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. 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.