Friday, May 20, 2011

Profit windfall for DIMO following tax cut

By Athraja de Silva

Diesel and Motor Engineering PLC (DIMO) saw a very lucrative financial year as the company’s net profit rose 755 percent to a whopping Rs.2.1 billion against the previous year, financials released to the Colombo Stock Exchange showed.

During the fourth quarter, the company’s post tax profit has rocketed 379 percent to Rs.664 million, when compared with the corresponding quarter of the previous year.

The yearly Earnings Per Share (EPS) also increased significantly to Rs.245 from just Rs.28.50, and the quarterly EPS to 76.30 from Rs.16 in the corresponding quarter.

In the full year to March 2011, DIMO reported revenue of Rs.29.3 billion and for the last quarter Rs.8.5 billion.

“We did good business and its has resulted in such an increase,’ said Ranjith Pandithage, Chairman, DIMO PLC.

DIMO with its various segments including vehicle, vehicle parts and spares, lighting and power tools, construction and material handling machinery and electro mechanical and bio medical engineering segments has had its largest contribution from the vehicle segment (Rs. 3.1 billion).

“There has been a growth in the Commercial Vehicle. DIMO Batta has been the more popular of the commercial vehicles we have sold, and this is due to the opportunities available in an emerging country,” said Pandithage.

The recent increase in vehicle duty has not fazed the group, said Pandithage, as the duty affects passenger vehicles which are not their primary sub-segment. But he admitted the duty waiver by the government during latter part of the last year had been helpful to produce such good numbers.

Looking forward, DIMO expects to record larger revenue in the future.

“We look forward to servicing a growing country, especially the commercial sector, and with new entrepreneurs entering the arena, we can help sustain future growth” added Pandithage.

source - www.dailymirror.lk

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