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| Thursday, 10 June 2004 |
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DIMO net profit soars158% to Rs. 100 million in 2003/04 Diesel & Motor Engineering Co. Ltd. (DIMO) according to the annual report released for the year ending March 31, 2004 has shown a record impressive growth in many areas. The group turnover has increased to Rs. 4,796 million in comparison to Rs. 3,404 million growth recorded for the previous year which is an increase of 41%. The pre tax profit has recorded Rs. 148 million in comparison to Rs. 58 million recorded for the year 2002/2003, with a growth of 152%. The net profit for the year under review is Rs. 100 million an all time record compared to Rs. 38 million the previous year, with a growth of 158%. The company increased the paid up capital from Rs. 60 million to Rs. 90 million in 2003 and the earning per share on the increased capital is Rs. 11.58 at present trading at a P.E. of six substantially cheaper compared to overall P.E. of 11.5 and sector P.E. of 9.4. During the past 12 months the share peaked at Rs. 99. The group has increased its capital and revenue reserves from Rs. 613 million to Rs. 742 million this year and the book value of a share is Rs. 82.49. DIMO which commenced operations in 1939 has diversified into many segments of businesses. Commercial and passenger vehicles, MRF, Michelin tyres, Mahendra Tractors, Siemens, Telecom products and non franchise auto parts. The group has maintained a business relationship with world renowned companies such as Mercedes Benz, Robert Bosch AG, G.M.B.H. of Germany, BF Goodrich, Siemens A.G. of Germany, Komatsu, Tata of India, Michelin and several other companies. The company was recently appointed sole distributor for Chrysler vehicles in Sri Lanka by M/s. Daimler Chrysler. According to the report the vehicle segment again fared well with a notable performance by the commercial vehicles business. The Auto parts and service segment achieved the best segment results with all units including franchise and non franchise spare parts and accessories and passenger and commercial vehicle repairs contributing to this success. The construction and material handling machinery showed recovery from a negative segment result in the previous year and the group expects to improve on the recovery made. The group has invested in new technology in the form of plant and machinery to the tune of Rs. 35 million. The group has further invested Rs. 98 million on IT todate. Total expenditure of the group on property, plant and equipment during the year amounted to Rs. 80 million. It was possible for the group to recommend a final dividend of 20% on top of an interim dividend of 15% already paid due to the excellent performance. |
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