Financial Times

Interest rates too high –DIMO chief

 

Diesel and Motor Engineering PLC (DIMO) has reported a net profit increase of 31% year on year for first half of the year to Rs.72 million. According to the company's interim report for the six months ended 30th September 2008, its 2Q09 net profits are up by 17% year on year to Rs.55 million. The company's gross profit margins have improved year on year despite a sharp year on year decline in turnover.

Furthermore, the company's land for its property plant and equipment was revalued on 30th September 2008 by an independent valuer. The interim report stated that the result of such revaluation was incorporated in the quarterly financial statement. The revaluation surplus amounting to Rs.824,090,448 was transferred to the revaluation reserve.

DIMO's Chairman, Managing Director and CEO A.R. Pandithage noted that the Group recorded a 31% reduction in turnover in comparison to the corresponding period of the previous year. However, he said the impact of this reduction was mitigated by strategies adopted by the Group which resulted in a 14% increase in pre-tax profit for the period. He added that lighting and power tools, construction and material handling and diversified activities were the segments which demonstrated both growth in turnover and profitability. Vehicle parts and services recorded a growth in profitability during the quarter under review.

Mr. Pandithage said interest rates continue to remain at a high level with the average weighted prime lending rate for the six months under review averaging 18.69% compared to 17.44% during the corresponding period of the previous year. He noted that the company has adopted stringent control measures over working capital management in order to alleviate the impact of high cost of bank borrowings. With the current meltdown in the global financial markets and the world economy displaying indications of slipping into recession, he anticipates that the next two quarters will be very challenging.


 
Top to the page  |  E-mail  |  views[1]
 
Other Financial Times Articles
CPC in the dock over hedging
LMS – BOI case now before Supreme Court
Foreigners sell JKH due to global crisis, company performance
AMW-JKH-Finlays project by 2009
MAXIS nominee as SLT CEO takes over this week
Fowzie, De Mel disagree on oil drilling
Handicraft - assets of Sri Lanka
Doosra by the Banks?
New dimension in Banking and Payment System
Regulation no panacea for all ills
Sri Lanka’s gift in song mesmerises world audience
Monopolies and less geared firms to survive global economic crisis
Hayleys Agro helps boost paddy yields
ST Biz Club discusses ‘Global Economic crisis’
Nestle, Aitken Spence take top awards at CCC awards
Business brief
Bailing out greedy business leaders
Risking his business to develop a downtrodden village
Holistic training for pastry chefs helps southern youth
Important to maintain Ceylon Cinnamon botanical name
Interest rates too high –DIMO chief
Finlays Colombo in medical waste disposal business
Public sector enterprises must improve performance – Amunugama
Weaker Indian rupee makes Indian fabrics more attractive here
Higher debt provisioning, fewer loans slow ComBank growth
SriLankan Airlines focusing on ancillary services
Some Rs 81 bln owed to Treasury from state agencies-report
NCCSL seminar on family businesses
E-WIS wins again at HP awards 2008
CPC energy hedge: Anatomy of a crisis
CPC - Is it heading for liquidation?
Tender procedures deviated in oil deals
Coconut growers worried about growing palm oil imports
Mobile industry settles dispute with Airtel
New-look Nawaloka now biggest private hospital in Sri Lanka
Loss of the EU’s GSP+ will hurt entire economy - exporters
Mlesna opens “Tea Castle” in Talawakelle

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2008 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution