Ceylon Finance Today: Diesel and Motor Engineering PLC, (DIMO), General Sales Agents for premium brands – Mercedes Benz, Tata and Bosch, has reported a group profit of Rs. 67 million for six months 30 ending September, down 12% against the corresponding 2013 period.
The capital reserves of the company were substantially boosted by the land revaluation done on 15 September 2014, by an independent valuer. The result of the revaluation was incorporated in the quarterly financial statements. Revaluation surplus amounting to Rs 818.5 million was transferred to revaluation reserve.
During the three months up to 30 September, group profits fell 22% as against its corresponding 2013 period. Although the group showed a loss, the company made an improved profit of Rs 46 million, up 130% from the 20 million of the previous year.
The company has five main business segments - 1. Vehicle sales — sale of brand new passenger and commercial vehicles, agri machinery, and second hand vehicles. 2. Vehicle after services — repair and service of vehicles including sale of vehicle spare parts, accessories and components. 3. Marketing — the sale of power tools and accessories, Lamps, Lighting Fittings, tyres and retreaded tyres. 4. Construction & Material Handling Equipment — sales and services of earth moving machinery, forklifts, and car parking systems and so on, and lastly 5. electro-mechanical, bio medical and marine engineering — sale, installation, commissioning and maintenance of medical equipment, generating sets, diesel engines for marine propulsion and, fluid management systems, industrial refrigeration systems and related items.
Of the total segment revenue of Rs 12,677 million the largest segment or 59% was the sale of Mercedes Benz and other vehicles – Rs 7,501 million.
The stated capital of Rs 425 million consists of 8,876,437 ordinary shares. The share traded at between Rs 510 and Rs 730 during the quarter which was an improvement in the price range of Rs 450 to 530 during the corresponding last year's quarter. The company has a stated capital of Rs 425 million with reserves of Rs 7,666 million.
The Employees Provident Fund (EPF) is DIMO's largest shareholder, with 18% of the shares, Director - A. R. Pandithage has 11% while J. C. Pandithage has 10%. A. R. Pandithage and his spouse together hold 21%.
The contingent liabilities as at 30 September 2014, on guarantees given by the company in respect of bid bonds, performance bonds and advance payments amounted to Rs 855.8 million.
Capital expenditure contracted by the company for which provision has not been made in the accounts amounts to Rs 908.6 million.