DIESEL & MOTOR ENGINEERING PLC_DIMO.N0000_2025_Financial Analysis

Added: 2026-05-07

[00:00:00]Hello everyone. I'm Nawodya Nikmini Buddika Vithana. I am following Higher National Diploma in Accountancy at the Sri Lanka Institute of Advanced [music] Technological Education ATI Gampaha.

[00:00:13]Today I am going to present the financial ratio analysis [music] of Diesel and Motor Engineering PLC. First, let me introduce the company. The name of the company is Diesel and Motor Engineering PLC. It was incorporated in 1939. [music] Dimo is one of the leading diversified company in [music] Sri Lanka.

[00:00:39]Its main business include vehicle distribution, engineering solution, agriculture machinery, construction equipment, [music] health care equipment, and retail mobility solution.

[00:00:53]The main shareholder is the Pandithage family with controlling interest. The chairman of the company, Ranjit [music] Pandithage, and the CEO is Gahanath Pandithage. The annual report period used for >> [music] >> ratio analysis is from 1st April 2024 to 31st March 2025.

[00:01:21]The latest financial information shows [music] total asset were Sri Lankan rupees 56,703 [music] million.

[00:01:34]Revenue was >> [music] >> Sri Lankan rupees 50,174 million. EBITA was Sri Lankan rupees 2,060 [music] million.

[00:01:51]Taxation was Sri Lankan rupees 356 million. Profit after tax was a loss of Sri Lankan rupees 1,308 [music] million. The company has 1,800 employees. First, I analysis profitability ratio. The gross profit margin in 2025 was 22.7% compared to 27.3% in 2024.

[00:02:28]This [music] decrease indicate a higher cost of sale and reduced profitability.

[00:02:35]The net profit margin in 2025 was negative 2.6% while in 2024 it was >> [music] >> 0.2%.

[00:02:51]This mean the company recorded a net loss in 2025 and overall profitability declined significantly. [music] Next, I analysis liquidity ratio. The current ratio in 2025 was 1.32 [music] time compared to 1.48 time in 2024.

[00:03:18]This decline indicate weaker short-term liquidity. The quick ratio in 2025 was 0.79 times [music] while in 2024 it was 0.91 [music] time.

[00:03:36]This shows the company has a lower ability to meet [music] short-term obligation without depending on inventory sales.

[00:03:47]>> [music] >> Now, let's move to efficiency ratio.

[00:03:50]Inventory turnover in 2025 was 3.1 time compared to 2.8 [music] times in 2025.

[00:04:03]This shows a slight improvement in inventory management.

[00:04:08]Receivable turnover in 2025 was 4.6 time while in 2024 it was 5.2 times. [music] This decline mean slower collection from customers. Next, I analysis solvency ratio. The debt-to-equity ratio in 2025 was >> [music] >> 2.67 times compared to 1.91 time in 2024.

[00:04:37]This increase indicate higher financial risk due to increased borrowing.

[00:04:42]>> [music] >> The interest coverage ratio in 2025 was 1.3 time while in 2024 it was 2.2 times. [music] This decline shows reduced ability to cover finance cost. Finally, I analysis >> [music] >> investor valuation ratio. Earning per share in 2025 was negative in Sri Lankan rupees 19.72 [music] compared to positive Sri Lankan rupees 1.39 in 2024.

[00:05:19]This significant decline happened because of the net loss.

[00:05:24]>> [music] >> The price earning ratio for 2025 is not meaningful because the company had negative earning. In 2024 the price earning ratio was [music] 12.4 times. Next, I move to the recommendation for Dimo.

[00:05:49]In conclusion, the financial ratio analysis of Diesel and Motor Engineering PLC shows a decline in profitability and liquidity during the financial year 2025 compared to 2024.

[00:06:07]At the same time, [music] solvency risk has increased due to higher borrowing and weaker interest coverage. However, with effective cost control, improved working capital management, and [music] reduced dependence on debt, the company [music] has the potential to improve its financial performance in future [music] periods. Thank you very much for listening to my presentation. I hope this analysis provided a clear understanding of the financial performance of Dimo PLC. Have a nice [music] day.