Feb 05, 2014 (LBO) - Profits at Sri Lanka's Diesel and Motor Engineering Plc rose to 110 million rupees in the December 2014 quarter from 4.5 million rupees a year earlier helped by better margins and lower interest costs, interim accounts showed.
Dimo has the agency for Mercedes and Tata in Sri Lanka.
The firm reported earnings of 12.47 rupees per share for the quarter. For the nine months to December DIMO reported earnings of 21.09 rupees per share on total profits of 187 million rupees, which were down 60 percent.
Dimo said revenues fell 13 percent to 5.6 billion rupees in the December 2014 quarter from a year earlier, but costs also fell 13 percent to 5.5 billion rupees, and it grew gross profits 20 percent to 1.09 billion rupees.
Interest costs also fell 21 percent to 107 million rupees.
Sri Lanka's motor companies have been hit after the state raised taxes on cars used by ordinary citizens, especially small ones, while the elected ruling class gets tax free cars and state workers get tax slashed cars.
State workers have also been selling their tax free 'permits' to ordinary citizens allowing the richer people to import luxury vehicles.
Sri Lanka has a habit of subsidizing energy with bank and central bank credit, which triggers even more imports, a balance of payments crisis and currency depreciation.
Policy makers then raise taxes on identified imports like cars, imagining that it will help cure currency pressure, which is a monetary problem needing higher interest rates and a halt of liquidity injections (printing money) in to the banking system.
Dimo has the agency for Mercedes and Tata in Sri Lanka.
The firm reported earnings of 12.47 rupees per share for the quarter. For the nine months to December DIMO reported earnings of 21.09 rupees per share on total profits of 187 million rupees, which were down 60 percent.
Dimo said revenues fell 13 percent to 5.6 billion rupees in the December 2014 quarter from a year earlier, but costs also fell 13 percent to 5.5 billion rupees, and it grew gross profits 20 percent to 1.09 billion rupees.
Interest costs also fell 21 percent to 107 million rupees.
Sri Lanka's motor companies have been hit after the state raised taxes on cars used by ordinary citizens, especially small ones, while the elected ruling class gets tax free cars and state workers get tax slashed cars.
State workers have also been selling their tax free 'permits' to ordinary citizens allowing the richer people to import luxury vehicles.
Sri Lanka has a habit of subsidizing energy with bank and central bank credit, which triggers even more imports, a balance of payments crisis and currency depreciation.
Policy makers then raise taxes on identified imports like cars, imagining that it will help cure currency pressure, which is a monetary problem needing higher interest rates and a halt of liquidity injections (printing money) in to the banking system.
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