Wheels Wealth

Oct 31, 2011 (LBO) – A post-war economic boom and lower import taxes helped sharply increase September 2011 quarter profits at two Sri Lankan vehicle importers which are agents for top German, Japanese and Indian brands. Diesel & Motor Engineering Company (DIMO), agents for Mercedes Benz and Tata, said September quarter net profit rose 175 percent to 921 million rupees from a year ago with sales doubling to 10.8 billion rupees.

Diluted earnings per share rose to 103.76 rupees from 37.78 rupees in the quarter, a stock exchange filing said.

For the six months ending September 2011 net profit shot up 220 percent to 1.6 billion rupees.

DIMO said profit from vehicle sales shot up to 1.87 billion rupees in the September 2011 quarter from 740 million rupees a year ago while profit from its construction, agricultural and material handling machinery business more than doubled to 230 million rupees.

Sri Lanka’s vehicle imports are seeing a boom after taxes were cut on cars and commercial vehicle with sales also picking up as the economy recovered after a 30-year war.

A note to the accounts said lands owned by the DIMO group were revalued in September 2011 and 879 million rupees transferred to the revaluat