23-May-2013 Interim Financial Statements 31-03-2013 - DIMO

Gaja

Gaja

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http://www.cse.lk/cmt/upload_report_file/694_1369235225451.pdf

salt

salt

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fairly valued. If the situation remains same, next year is a loss

Gaja · 3 Sri Lanka's Dimo in the red in March quarter Thu May 23, 2013 11:17 am

Gaja

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May 23, 2013 (LBO) - Sri Lanka's Diesel and Motor Engineering Company Plc, has reported losses of 36 million rupees in the March 2013 quarter down from profits of 427 million rupees, following a tax hike which hit the auto market.

The group reported losses of 90 cents per share in the quarter. The stock was quoted at 595.10 down 4.50 rupees on Thursday.

For the year to March it reported earnings of 52 rupees per share on total profits of 434 million rupees, down from 3.5 billion rupees a year earlier.

Last year's profits included an 879 million rupees gain on land value.

The group said revenues fell 52 percent to 5.4 billion rupees, and cost of sales fell 51 percent to 5.4 billion and gross profits fell 55 percent to 869 million rupees.

Dimo is the agents in Sri Lanka for Mercedes Benz and Tata vehicles.

In 2012 Sri Lanka jacked up taxes on vehicles as a misguided effort to emerge from a balance of payments crisis triggered by money printed to subsidize imported energy.

Taxes on cars were raised despite warnings from the both the International Monetary Fund and analysts who said the tax hike would hit economic activity state tax revenues and worsen a downturn by keeping interest rates higher than needed.

Higher imports during a BOP crisis is a symptom of credit growth stemming mostly from low interest rates and central bank credit (printed money).

Corrective measures, which include interest rates, energy prices and allowing the rupee to fall in line with the pressure generated by printed money, automatically curbs imports and slows credit driven activity without any need to kill imports through prohibitive taxes.
http://www.lankabusinessonline.com/news/sri-lankas-dimo-in-the-red-in-march-quarter/2146519887http://www.lankabusinessonline.com/news/sri-lankas-dimo-in-the-red-in-march-quarter/2146519887