"E" Class best seller for DIMO
Diesel & Motor Engineering Company (DIMO) has reported a sharp
rise in profits, with the year's best selling car being the Mercedes
Benz "E" Class, and has announced plans to rebuild tyres
and make auto filters.
DIMO chairman and managing director A.R. Pandithage warned that
last year's import tariff hike had adversely affected the market
for cars. DIMO group profit after tax rose 77 percent to Rs 177
million in the financial year ended March 31, 2005 while group turnover
increased 58 percent to Rs 7.6 billion.
Hayleys conglomerate owns 28 percent of DIMO. Pandithage said in
his annual report to shareholders that the year's best-seller was
the Mercedes Benz "E" Class and that DIMO plans to introduce
new Mercedes models - S, M, B, and CLS.
has done initial studies on an investment in commercial vehicle
tyre rebuilding that will complement the present tyre business and
plans to launch this manufacturing project in the latter half of
2005. DIMO now markets Michelin, BF Goodrich and MRF truck tyres.
also said DIMO was considering another investment in a project to
manufacture auto filters. But he said the general economic and regulatory
climate is unfavourable going into 2005/06 financial year.
exchange and interest rates plus a dire tariffs policy badly affecting
the vehicle business are not desirable trends." The appreciation
of the euro against the rupee and sharp increase in import tariffs
adversely affected the passenger car market. However, he said the
company remains optimistic of improving on last year's results.