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| Tuesday, 29 June 2004 |
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DIMO posts Rs 100,265 million profit after tax Diesel and Motor Engineering Company Ltd (DIMO) recorded a Rs. 100, 265 million profit after tax for the financial year 2003/2004 registering a 41% increase in turnover. The company attributes notable performance in the commercial vehicles business as the key factor for the growth. Chairman of DIMO S. Mendis in his review on the annual performance said that the Group completed a successful year, recording the highest post tax profit to-date. The Group recorded a 41% increase in turnover (85% - 2002/03). Profit before tax increased by 152% (52%-2002/2003) The Vehicle Segment again fared well, with a notable performance by the Commercial Vehicles business. The increase in sales of Commercial Vehicles contributed to the increase in working capital. Mercedes Benz remains the market leader in the brand new luxury sedan car category. The Auto Parts and Service segment achieved the best segment result, with all units, including franchise and non-franchise spare parts and accessories and passenger and commercial vehicle repairs, contributing to this success. DIMO has been appointed the sole-distributor for Chrysler Vehicles in Sri Lanka by M/s. Daimler Chrysler. The prestigious Chrysler range, which includes Sedans, Four Wheel Drive Vehicles and Vans, presents an opportunity to enter other segments of the automobile market and add variety to our offering. Arrangements are under way to launch the range in Sri Lanka during the current year. Substantial investments will have to be made in this business. The TATA passenger car was an addition to our portfolio of vehicles during the year. The TATA double cab introduced during the last quarter especially showed encouraging results. Anaesthesia and Monitoring equipment from Drager Medical, Bosch Packaging machines, SV Robotics, Conveyor System. Specturmkind Supermarket Shelving, DEMAG Goods Hoists and Dock Leveuers, MRF Industrial/Earthmover tyres and IPWT Garbage and Sewerage disposal equipment are other ranges that were added to our product portfolio during the year", Mendis said. The rights issue of one share for two held, at a premium of Rs. 10 per share, during the year increased issued share capital from Rs. 60 million to Rs. 90 million. The total received from the shareholders on this issue was Rs. 60 million. The Board recommends a final dividend of 20%. The total dividend for the year, including the 15% interim dividend paid in March 8, 2004, is 35%. The total dividend amounts to Rs. 31.5 million, he said. Chief Executive Officer of DIMO A. R. Pandithage said that the Group will concentrate not just on reporting on financial performance but also on the non-financial wealth and achievements which have enriched the Dimo Group over the year gone by. This year has seen a vindication of that life force at Dimo - the will to go the extra mile; striving for excellence and quality; pursuing optimum returns; furthering enduring partnerships, moving ahead with will and faith - in a word, momentum". "Our core business is firmly rooted in the motor trade. During the year under review, vehicle registrations grew significantly - passenger vehicles by over 76% and commercial vehicles by over 36%. Thus, the industry within which our core business is situated remains vibrant and continues to grow, Pandithage said. (SP) |
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