DIMO posts Rs 2 b profit

Diesel and Motor Engineering PLC (DIMO) recorded after tax profit of Rs 2,104 million up from Rs 189 million last year.

Commenting on the tenfold increase in profits in a single year, DIMO Chairman Managing Director and CEO Ranjith Pandithage said key factors that contributed to this success have also bought about so much opportunity that every corner of DIMO is a fresh hive of activity.

The first was the reduction in interest rates. This made it easier for customers to finance their purchases. “The reduced interest rates also gave an additional impetus to the steady increasing economic activity in all the sectors that we serve.” he said.

This was on top of the already buoyant economic environment owing to the opening up of markets in the North and East of the country and other infrastructure development projects, he said.

The government’s decision to rationalize tariffs on imports, particularly those of passenger motor vehicles benefited the company. Motor car registrations which had shrunk by 75 percent in 2009 bounced back dramatically.

“An examination of our results over the past ten years demonstrate protracted challenge punctuated with years of severe strife. Through all these years we have systematically built on our intellectual capital and profits were reinvested to develop and maintain all our physical facilities in peak performing condition,” he said.

A phenomenal increase in turnover accompanied by a corresponding increase in net profit, generation of significant amount of funds through operations and investments made in working capital and property, plant and equipment are key highlights for the financial year under review.

“Funds generated during the year leaves the company with resources to provide the platform for future sustainable growth,” Pandithage said. (SJ)