Oct 28, 2013 (LBO) – Profits and Diesel and Motor Engineering Plc, agents for Mercedes and Tata in Sri Lanka slipped 58 percent to 47,590 million rupees in the September 2013 quarter form a year earlier. The firm reported earnings of 5.36 rupees per share for the quarter. For the six months to September profits were down 84 percent to 76.4 million rupees.
Sri Lanka’s motor sector has been badly hit after taxes were raised in 2012 in response to a balance of payments crisis brought on largely by bank credit subsidized energy.
DIMO said revenues fell 26 percent to 5.2 billion rupees in the September quarter and cost of sales fell at a faster 32 percent to 1.1 billion rupees.
But the firm said distribution expenses rose 205 percent to 152 million rupees and administrative expenses were up 15 percent to 799 million rupees.