Diesel & Motor Engineering : INTERIM FINANCIAL STATEMENTS - FOR THE 6 MONTHS PERIOD ENDED 30TH SEPTEMBER 2022

DIESEL & MOTOR ENGINEERING PLC

INTERIM FINANCIAL STATEMENTS - FOR THE 6 MONTHS PERIOD ENDED 30TH SEPTEMBER 2022

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	Group					Group
	Audited		Unaudited	Unaudited					Unaudited		Unaudited
	Year ended		6 months to	6 months to		Variance	3 months to		3 months to		Variance
31-03-2022			30-09-2022	30-09-2021	%			30-09-2022	30-09-2021	%
	Rs.'000		Rs.'000	Rs.'000					Rs.'000		Rs.'000
37,507,480		Revenue	16,356,961	18,339,539	(11)			8,755,752	10,646,798	(18)
(27,643,775)		Cost of sales	(9,399,105)	(14,065,526)	(33)			(5,207,855)		(8,086,559)	(36)
9,863,705		Gross profit	6,957,856	4,274,013	63			3,547,897	2,560,239	39
220,499		Other operating income	161,457	136,825	18			100,298	46,755	115
(497,640)		Selling and distribution expenses	(190,033)	(274,347)	(31)			(121,307)	(168,810)	(28)
(117,195)		Impairment reversal/(loss) on trade receivables	96,349	16,555	482			71,667	67,392	6
	(6,055,956)		Administrative expenses	(3,794,065)	(2,710,326)	40			(1,994,369)		(1,359,491)	47
3,413,413		Operating profit	3,231,564	1,442,720	124			1,604,186	1,146,085	40
56,313		Finance income	45,219	11,107	307			19,579	6,544	199
	(2,320,011)		Finance costs	(2,394,763)	(426,772)	461			(896,313)		(275,718)	225
(2,263,698)		Net finance costs	(2,349,544)	(415,665)	465			(876,734)	(269,174)	226
			Share of results of equity-accounted investees,
	15,630		net of tax	16,376	(120)	(13,747)			13,678		(1,036)	(1,420)
1,165,345		Profit before tax	898,396	1,026,935	(13)			741,130	875,875	(15)
	(310,975)		Income tax expense	(231,913)	(244,015)	(5)			(207,547)		(223,905)	(7)
854,370		Profit for the period	666,483	782,920	(15)			533,583	651,970	(18)
			Other comprehensive income
			Items that will not be reclassified to profit
			or loss in subsequent periods
			Remeasurement loss on defined benefit
(15,399)		obligation	-	-	-			-	-	-
3,696		Deferred tax reversal on actuarial loss	-	-	-			-	-	-
			Net change in fair value of equity investments at
	2,224		FVOCI	1,543	1,099	40			3,879		798	386
(9,479)			1,543	1,099					3,879	798
			Items that are or may be reclassified to
			profit or loss in subsequent periods
			Foreign currency translation differences of
	62,471		foreign operations	47,682	(31,435)	252			(25,320)		(18,882)	(34)
62,471			47,682	(31,435)					(25,320)	(18,882)
			Total other comprehensive income for the
	52,992		period, net of tax	49,225	(30,336)	262			(21,441)		(18,084)	(19)
907,362		Total comprehensive income for the	715,708	752,584	(5)			512,142	633,886	(19)
	period
			Profit attributable to:
702,119		Equity holders of the parent	606,923	662,236					508,002	562,839
	152,251		Non-controlling interest	59,560	120,684					25,581		89,131
854,370			666,483	782,920					533,583	651,970
			Total comprehensive income attributable
			to:
753,108		Equity holders of the parent	656,442	635,618					486,356	546,953
	154,254		Non-controlling interest	59,266	116,966					25,786		86,933
	907,362			715,708	752,584					512,142		633,886
76.06		Basic and diluted earnings per share (Rs.)	65.74	71.74					55.03		60.97
			Figures in brackets indicate deductions

Diesel & Motor Engineering PLC

Interim Financial Statements - For the 6 months period ended 30th September 2022

Page 1 of 10

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	Company				Company
	Audited		Unaudited	Unaudited				Unaudited		Unaudited
	Year ended	6 months to	6 months to		Variance	3 months to		3 months to	Variance
31-03-2022		30-09-2022	30-09-2021	%		30-09-2022	30-09-2021	%
	Rs.'000	Rs.'000	Rs.'000				Rs.'000		Rs.'000

30,086,993	Revenue	12,694,986	14,587,894
(21,741,818)	Cost of sales	(6,865,357)	(11,190,441)
8,345,175	Gross profit	5,829,629	3,397,453
506,333	Other operating income	298,647	248,458
(518,780)	Selling and distribution expenses	(157,354)	(218,239)
(40,370)	Impairment reversal/(loss) on trade receivables	16,034	11,359
(5,289,252)	Administrative expenses	(3,148,233)	(2,345,954)
3,003,106	Operating profit	2,838,723	1,093,077
27,565	Finance income	166,563	7,062
(2,303,824)	Finance costs	(2,343,986)	(350,775)
(2,276,259)	Net finance costs	(2,177,423)	(343,713)
15,630	Share of results of equity-accounted investees, net of tax	16,376	(120)
742,477	Profit before tax	677,676	749,244
(159,500)	Income tax expense	(151,284)	(179,564)
582,977	Profit for the period	526,392	569,680
	Other comprehensive income
	Items that will not be reclassified to profit or loss
	in subsequent periods
(14,723)	Remeasurement (loss)/gain on defined benefit obligation	-	-
3,534	Deferred tax reversal/(charge) on actuarial (loss)/gain	-	-
1,415	Net change in fair value of equity investments at FVOCI	(56)	1,090
(9,774)		(56)	1,090
	Items that are or may be reclassified to profit or
	loss in subsequent periods
	Foreign currency translation differences of foreign
48,941	operations	35,902	(11,324)
48,941		35,902	(11,324)
	Total other comprehensive income for the period,
39,167	net of tax	35,846	(10,234)
622,144	Total comprehensive income for the period	562,238	559,446

(13)	6,698,927	8,243,644	(19)
(39)	(3,833,262)	(6,263,033)	(39)
72	2,865,665	1,980,611	45
20	173,693	107,955	61
(28)	(77,763)	(131,690)	(41)
41	55,217	50,791	9
34	(1,668,163)	(1,209,595)	38
160	1,348,649	798,072	(69)
2,259	105,312	4,107	2,464
568	(815,611)		(225,542)	262
534	(710,299)		(221,435)	221
13,747	13,678		(1,036)	1,420
(10)	652,028	575,601	13
(16)	(145,749)		(147,662)	(1)
(8)	506,279		427,939	18
-	-	-	-
-	-	-	-
(105)	1,881		798	136
	1,881		798
417	(152)		(6,887)	(98)
	(152)		(6,887)
450	1,729		(6,089)	128
0	508,008		421,850	20

63.15 Basic and diluted earnings per share (Rs.)	57.02	61.71		54.84	46.36

Figures in brackets indicate deductions

Diesel & Motor Engineering PLC

Interim Financial Statements - For the 6 months period ended 30th September 2022

Page 2 of 10

STATEMENT OF FINANCIAL POSITION

Group		Company		Group			Company
Audited		Audited		Unaudited			Unaudited	Unaudited		Unaudited
as at		as at		as at			as at	as at		as at
31-03-2022	31-03-2022		30-09-2022			30-09-2021		30-09-2022	30-09-2021
Rs.'000		Rs.'000		Rs.'000			Rs.'000	Rs.'000		Rs.'000
			ASSETS
14,071,712	13,648,665	Property, plant and equipment	14,409,071			13,891,242		13,625,460	13,509,445
624,385	548,254	Right-of-use assets	569,848			449,559		504,727	362,417
316,123	194,726	Intangible assets and goodwill	1,121,723			139,682		240,882	16,950
-	728,278	Investments in subsidiaries	-			-		1,669,224	823,979
45,430	45,430	Investments in equity accounted investees	116,877			1,739		116,877	1,739
7,829	6,952	Equity securities	9,372			6,704		6,896	6,627
164,436		-	Deferred tax assets	273,301			161,619		-		-
15,229,915		15,172,305	Total non-current assets	16,500,192			14,650,545		16,164,066		14,721,157
9,799,949	7,529,200	Inventories	10,266,637			8,355,859		7,214,692	6,604,693
9,299,796	6,944,985	Trade and other receivables	8,940,454			9,819,759		5,528,626	7,340,842
2,032,933	1,149,175	Other current assets	2,989,756			3,258,722		1,280,154	2,039,058
83,377	-	Current tax asset	95,772			94,231		-	-
40,923	1,070,985	Amounts due from related parties	26,384			30,161		1,748,029	165,631
3,818,097		2,337,628	Cash and cash equivalents	2,541,278			2,512,569		1,533,568		1,578,319
25,075,075		19,031,973	Total current assets	24,860,281			24,071,301		17,305,069		17,728,543
40,304,990	34,204,278	TOTAL ASSETS	41,360,473			38,721,846		33,469,135	32,449,700
			EQUITY AND LIABILITIES
			EQUITY
620,578	620,578	Stated capital	620,578			620,578		620,578	620,578
6,202,697	6,149,097	Other components of equity	6,252,216			6,113,387		6,184,943	6,088,507
8,237,608		6,912,926	Revenue reserves	8,729,137			8,209,428		7,323,924		6,910,818
15,060,883	13,682,601	Equity attributable to equity holders of the parent	15,601,931			14,943,393		14,129,445	13,619,903
405,604		-	Non-controlling interests	335,068			368,316		-		-
15,466,487		13,682,601	Total equity	15,936,999			15,311,709		14,129,445		13,619,903
1,164,133	1,164,133	Long-term borrowings	1,194,026			1,272,960		919,305	1,272,960
574,443	505,849	Lease liabilities	478,791			367,472		427,161	293,929
864,286	781,892	Employee benefits	984,449			829,751		848,917	738,652
1,417,856	1,417,856	Deferred tax liabilities	1,127,154			1,821,246		1,127,154	1,821,246
361,524		22,663	Contract liabilities	361,569			328,939		-		39,215
4,382,242		3,892,393	Total non-current liabilities	4,145,989			4,620,368		3,322,537		4,166,002
7,793,051	7,292,195	Trade and other payables	2,828,428			3,730,502		1,901,054	2,841,156
3,045,424	2,179,222	Other current liabilities	2,630,966			2,875,654		1,946,339	1,987,221
564,441	559,541	Long term-borrowings	820,493			498,804		573,926	483,854
105,140	78,039	Lease liabilities	164,503			135,409		130,982	98,702
1,221,572	365,358	Contract liabilities	1,470,409			1,167,725		438,648	603,774
-	-	Government grant	-			36,254		-	36,254
503,666	441,451	Current tax liability	503,144			353,954		450,492	246,265
7,222,967	5,712,212	Short-term borrowings	12,329,387			9,991,467		10,272,837	8,235,181
-		1,266	Amounts due to related parties	530,155			-		302,875		131,388
20,456,261		16,629,284	Total current liabilities	21,277,485			18,789,769		16,017,153		14,663,795
24,838,503		20,521,677	Total liabilities	25,423,474			23,410,137		19,339,690		18,829,797
40,304,990		34,204,278	TOTAL EQUITY AND LIABILITIES	41,360,473			38,721,846		33,469,135		32,449,700

It is certified that the Financial Statements have been prepared in accordance with the requirements of the Companies Act No.7 of 2007.

(Sgd.) M.H.B.U.S.B. Mahagedara

General Manager - Finance

The Board of Directors is responsible for these Financial Statements.

Signed for and on behalf of the Board.

	(Sgd.) A.R.Pandithage	(Sgd.) B.C.S.A.P.Gooneratne
	Chairman/Managing Director	Director/Chief Financial Officer
	15th November 2022

Diesel & Motor Engineering PLC

Interim Financial Statements - For the 6 months period ended 30th September 2022

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Group

For the six months ended 30th September

As at 01st April 2021

Total comprehensive income

Profit for the period

Other comprehensive income/(loss), net of tax

Dividends to equity holders 2020/21 Final dividend Acquisition of non-controlling interest

• contributions and distributions Reserve capitalisation

As at 30th September 2021

As at 01st April 2022

Total comprehensive income

Profit for the period

Other comprehensive income/(loss), net of tax

Acquisition of subsidiary with non-controlling interests Dividends to equity owners

-2021/22 Final dividend

As at 30th September 2022

Company

For the six months ended 30th September

As at 01st April 2021

Total comprehensive income Profit for the period

Other comprehensive income/(loss), net of tax

Dividends to equity owners 2020/21 Final dividend Reserve capitalisation

As at 30th September 2021

As at 01st April 2022

Total comprehensive income

Profit for the period

Other comprehensive income/(loss), net of tax

Dividends to equity owners -2021/22 Final dividend

As at 30th September 2022

Figures in brackets indicate deductions.

Statement of Changes in Equity

		Other Components of Equity		Revenue Reserves	Non-
				Foreign				Controlling
				Currency				Interests
	Stated	Revaluation	Fair value	Translation		General	Retained
	Capital	Reserve	Reserve	Reserve		Reserve	Earnings		Total
	Rs.'000	Rs.'000	Rs.'000	Rs.'000		Rs.'000	Rs.'000	Rs.'000	Rs.'000
	425,297	6,112,161	4,147	23,697	5,392,290	2,584,390	419,270	14,961,252
	-	-	-	-	-	662,236	120,684	782,920
	-	-	1,099	(27,717)	-	-	(3,718)	(30,336)
	-	-	1,099	(27,717)	-	662,236	116,966	752,584
	-	-	-	-	-	(110,955)	-	(110,955)
	-	-	-	-	-	(123,252)	(167,920)	(291,172)
	195,281	-	-	-	-	(195,281)	-	-
	195,281	-	-	-	-	(429,488)	(167,920)	(402,127)
	620,578	6,112,161	5,246	(4,020)	5,392,290	2,817,138	368,316	15,311,709
	620,578	6,112,161	6,371	84,165	5,392,290	2,845,318	405,604	15,466,487
	-	-	-	-	-	606,923	59,560	666,483
	-	-	1,543	47,976	-	-	(294)	49,225
	-	-	1,543	47,976	-	606,923	59,266	715,708
	-	-	-	-	-	-	(129,802)	(129,802)
	-	-	-	-	-	(115,394)	-	(115,394)
	-	-	-	-	-	(115,394)	(129,802)	(245,196)
	620,578	6,112,161	7,914	132,141	5,392,290	3,336,847	335,068	15,936,999
		Other Components of Equity		Revenue Reserves
				Foreign
				Currency
	Stated	Revaluation	Fair Value	Translation		General	Retained
	Capital	Reserve	Reserve	Reserve		Reserve	Earnings	Total
	Rs.'000	Rs.'000	Rs.'000	Rs.'000		Rs.'000	Rs.'000	Rs.'000
	425,297	6,090,133	4,087	4,521	4,929,464	1,717,910	13,171,412
	-	-	-	-	-	569,680	569,680
	-	-	1,090	(11,324)	-	-	(10,234)
	-	-	1,090	(11,324)	-	569,680	559,446
	-	-	-	-	-	(110,955)	(110,955)
	195,281	-	-	-	-	(195,281)	-
	195,281	-	-	-	-	(306,236)	(110,955)
	620,578	6,090,133	5,177	(6,803)	4,929,464	1,981,354	13,619,903
	620,578	6,090,133	5,502	53,462	4,929,464	1,983,462	13,682,601
	-	-	-	-	-	526,392	526,392
	-	-	(56)	35,902	-	-	35,846
	-	-	(56)	35,902	-	526,392	562,238
	-	-	-	-	-	(115,394)	(115,394)
	-	-	-	-	-	(115,394)	(115,394)
	620,578	6,090,133	5,446	89,364	4,929,464	2,394,460	14,129,445

Diesel & Motor Engineering PLC

Interim Financial Statements - For the 6 months period ended 30th September 2022

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