Diesel & Motor Engineering : INTERIM FINANCIAL STATEMENTS - FOR THE 9 MONTHS PERIOD ENDED 31ST DECMBER 2022

DIESEL & MOTOR ENGINEERING PLC

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INTERIM FINANCIAL STATEMENTS - FOR THE 9 MONTHS PERIOD ENDED 31ST DECEMBER 2022

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	Group					Group
	Audited		Unaudited	Unaudited				Unaudited		Unaudited
	Year ended		9 months to	9 months to		Variance	3 months to		3 months to		Variance
31-03-2022			31-12-2022	31-12-2021	%		31-12-2022	31-12-2021	%
	Rs.'000		Rs.'000	Rs.'000				Rs.'000		Rs.'000
37,507,480		Revenue	26,887,783	27,374,118	(2)		10,530,822	9,034,579	17
	-		Sales taxes	(134,176)	-	100		(134,176)		-	100
37,507,480		Net revenue	26,753,607	27,374,118	(2)		10,396,646	9,034,579	15
(27,643,775)		Cost of sales	(15,965,072)	(20,394,176)	(22)		(6,565,967)		(6,328,650)	4
9,863,705		Gross profit	10,788,535	6,979,942	55		3,830,679	2,705,929	42
220,499		Other operating income	188,679	164,307	15		27,222	27,482	(1)
(497,640)		Selling and distribution expenses	(390,774)	(466,776)	(16)		(200,741)	(192,429)	4
(117,195)		Impairment reversal/(loss) on trade receivables	62,460	25,244	147		(33,889)	8,689	(490)
	(6,055,956)		Administrative expenses	(5,979,734)	(4,292,547)	39		(2,185,669)		(1,582,221)	38
3,413,413		Operating profit	4,669,166	2,410,170	94		1,437,602	967,450	49
56,313		Finance income	78,341	30,800	154		33,122	19,693	68
	(2,320,011)		Finance costs	(3,467,473)	(713,774)	386		(1,072,710)		(287,002)	274
(2,263,698)		Net finance costs	(3,389,132)	(682,974)	396		(1,039,588)	(267,309)	289
			Share of results of equity-accounted investees,
	15,630		net of tax	(2,751)	(869)	217		(19,127)		(749)	2,454
1,165,345		Profit before tax	1,277,283	1,726,327	(26)		378,887	699,392	(46)
	(310,975)		Income tax expense	(807,669)	(432,011)	87		(575,756)		(187,996)	206
854,370		Profit for the period	469,614	1,294,316	(64)		(196,869)	511,396	(138)
			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	671	1,947	(66)		(872)		848	(203)
(9,479)			671	1,947				(872)	848
			Items that are or may be reclassified to
			profit or loss in subsequent periods
			Foreign currency translation differences of
	62,471		foreign operations	48,617	(24,992)	295		935		6,443	(85)
62,471			48,617	(24,992)				935	6,443
			Total other comprehensive income for the
	52,992		period, net of tax	49,288	(23,045)	314		63		7,291	(99)
907,362		Total comprehensive income for the	518,902	1,271,271	(59)		(196,806)	518,687	(138)
	period
			Profit attributable to:
702,119		Equity holders of the parent	384,026	1,110,710				(222,897)	448,474
	152,251		Non-controlling interest	85,588	183,606				26,028		62,922
854,370			469,614	1,294,316				(196,869)	511,396
			Total comprehensive income attributable
			to:
753,108		Equity holders of the parent	433,662	1,089,415				(222,780)	453,797
	154,254		Non-controlling interest	85,240	181,856				25,974		64,890
	907,362			518,902	1,271,271				(196,806)		518,687
76.06		Basic and diluted earnings per share (Rs.)	41.60	120.32				(24.15)		48.58
			Figures in brackets indicate deductions

Diesel & Motor Engineering PLC

Interim Financial Statements - For the 9 months period ended 31st December 2022

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STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	Company				Company
	Audited		Unaudited	Unaudited				Unaudited		Unaudited
	Year ended	9 months to	9 months to		Variance	3 months to		3 months to	Variance
31-03-2022		31-12-2022	31-12-2021	%		31-12-2022	31-12-2021	%
	Rs.'000	Rs.'000	Rs.'000				Rs.'000		Rs.'000

30,086,993	Revenue	20,414,295	21,669,991
-	Sales taxes	(116,022)	-
30,086,993	Net revenue	20,298,273	21,669,991
(21,741,818)	Cost of sales	(11,419,815)	(16,054,599)
8,345,175	Gross profit	8,878,458	5,615,392
506,333	Other operating income	415,259	362,566
(518,780)	Selling and distribution expenses	(316,181)	(390,951)
(40,370)	Impairment (loss)/reversal on trade receivables	(14,290)	30,488
(5,289,252)	Administrative expenses	(4,947,959)	(3,846,065)
3,003,106	Operating profit	4,015,287	1,771,430
27,565	Finance income	310,687	14,778
(2,303,824)	Finance costs	(3,297,036)	(571,259)
(2,276,259)	Net finance costs	(2,986,349)	(556,481)
15,630	Share of results of equity-accounted investees, net of tax	(2,751)	(869)
742,477	Profit before tax	1,026,187	1,214,080
(159,500)	Income tax expense	(634,620)	(295,762)
582,977	Profit for the period	391,567	918,318
	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	(463)	1,520
(9,774)		(463)	1,520
	Items that are or may be reclassified to profit or
	loss in subsequent periods
	Foreign currency translation differences of foreign
48,941	operations	38,571	(13,452)
48,941		38,571	(13,452)
	Total other comprehensive income for the period,
39,167	net of tax	38,108	(11,932)
622,144	Total comprehensive income for the period	429,675	906,386

(6)	7,719,309	7,082,097	9
100	(116,022)		-	100
(6)	7,603,287	7,082,097	7
(29)	(4,554,458)	(4,864,158)	(6)
58	3,048,829	2,217,939	37
15	116,612	114,108	2
(19)	(158,827)	(172,712)	(8)
(147)	(30,324)	19,129	(259)
29	(1,799,726)	(1,500,111)	20
127	1,176,564	678,353	73
2,002	144,124	7,716	1,768
477	(953,050)		(220,484)	332
437	(808,926)		(212,768)	280
217	(19,127)		(749)	2,454
(15)	348,511	464,836	(25)
115	(483,336)		(116,198)	316
(57)	(134,825)		348,638	(139)
-	-	-	-
-	-	-	-
(130)	(407)		430	(195)
	(407)		430
387	2,669		(2,128)	225
	2,669		(2,128)
419	2,262		(1,698)	233
(53)	(132,563)		346,940	(138)

63.15 Basic and diluted earnings per share (Rs.)	42.42	99.48		(14.60)	37.77

Figures in brackets indicate deductions

Diesel & Motor Engineering PLC

Interim Financial Statements - For the 9 months period ended 31st December 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		31-12-2022			31-12-2021		31-12-2022	31-12-2021
Rs.'000		Rs.'000		Rs.'000			Rs.'000	Rs.'000		Rs.'000
			ASSETS
14,071,712	13,648,665	Property, plant and equipment	14,385,363			14,087,081		13,569,591	13,701,163
624,385	548,254	Right-of-use assets	548,196			586,965		488,581	505,328
316,123	194,726	Intangible assets and goodwill	1,195,191			137,400		312,148	15,330
-	728,278	Investments in subsidiaries	-			-		1,669,224	727,330
45,430	45,430	Investments in equity accounted investees	97,784			25,998		97,784	25,998
7,829	6,952	Equity securities	8,500			7,552		6,489	7,057
164,436		-	Deferred tax assets	241,912			158,714		-		-
15,229,915		15,172,305	Total non-current assets	16,476,946			15,003,710		16,143,817		14,982,206
9,799,949	7,529,200	Inventories	11,364,793			9,272,097		7,179,046	7,034,272
9,299,796	6,944,985	Trade and other receivables	9,221,060			9,586,315		5,575,535	6,915,995
2,032,933	1,149,175	Other current assets	2,449,939			1,724,210		1,315,501	1,065,512
83,377	-	Current tax asset	112,142			83,377		16,432	-
40,923	1,070,985	Amounts due from related parties	31,929			18,544		2,782,427	287,762
3,818,097		2,337,628	Cash and cash equivalents	2,852,099			3,061,687		1,479,803		1,639,797
25,075,075		19,031,973	Total current assets	26,031,962			23,746,230		18,348,744		16,943,338
40,304,990	34,204,278	TOTAL ASSETS	42,508,908			38,749,940		34,492,561	31,925,544
			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	6,252,333			6,118,710		6,187,205	6,086,809
8,237,608		6,912,926	Revenue reserves	8,506,240			8,657,902		7,189,099		7,259,456
15,060,883	13,682,601	Equity attributable to equity holders of the parent	15,379,151			15,397,190		13,996,882	13,966,843
405,604		-	Non-controlling interests	357,844			433,206		-		-
15,466,487		13,682,601	Total equity	15,736,995			15,830,396		13,996,882		13,966,843
1,164,133	1,164,133	Long-term borrowings	1,469,211			1,254,560		1,218,860	1,254,560
574,443	505,849	Lease liabilities	472,966			525,916		418,054	438,258
864,286	781,892	Employee benefits	1,022,619			840,663		881,399	760,852
1,417,856	1,417,856	Deferred tax liabilities	2,055,945			1,779,758		2,052,476	1,779,758
361,524		22,663	Contract liabilities	581,097			331,736		34,611		35,930
4,382,242		3,892,393	Total non-current liabilities	5,601,838			4,732,633		4,605,400		4,269,358
7,793,051	7,292,195	Trade and other payables	2,337,589			3,530,489		1,546,437	2,927,875
3,045,424	2,179,222	Other current liabilities	3,662,542			2,775,651		2,545,943	2,091,521
564,441	559,541	Long term-borrowings	720,094			545,463		571,235	535,538
105,140	78,039	Lease liabilities	165,521			118,780		134,819	103,420
1,221,572	365,358	Contract liabilities	1,069,889			1,163,956		338,113	404,466
-	-	Government grant	-			31,766		-	31,766
503,666	441,451	Current tax liability	98,740			515,129		-	384,696
7,222,967	5,712,212	Short-term borrowings	12,585,545			9,505,677		10,558,564	7,200,309
-		1,266	Amounts due to related parties	530,155			-		195,168		9,752
20,456,261		16,629,284	Total current liabilities	21,170,075			18,186,911		15,890,279		13,689,343
24,838,503		20,521,677	Total liabilities	26,771,913			22,919,544		20,495,679		17,958,701
40,304,990		34,204,278	TOTAL EQUITY AND LIABILITIES	42,508,908			38,749,940		34,492,561		31,925,544

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

13th February 2023

Diesel & Motor Engineering PLC

Interim Financial Statements - For the 9 months period ended 31st December 2022

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Group

For the nine months ended 31st December

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 31st December 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 31st December 2022

Company

For the nine months ended 31st December

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 31st December 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 31st December 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
	-	-	-	-	-	1,110,710	183,606	1,294,316
	-	-	1,947	(23,242)	-	-	(1,750)	(23,045)
	-	-	1,947	(23,242)	-	1,110,710	181,856	1,271,271
	-	-	-	-	-	(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	6,094	455	5,392,290	3,265,612	433,206	15,830,396
	620,578	6,112,161	6,371	84,165	5,392,290	2,845,318	405,604	15,466,487
	-	-	-	-	-	384,026	85,588	469,614
	-	-	671	48,965	-	-	(348)	49,288
	-	-	671	48,965	-	384,026	85,240	518,902
	-	-	-	-	-	-	(133,000)	(133,000)
	-	-	-	-	-	(115,394)	-	(115,394)
	-	-	-	-	-	(115,394)	(133,000)	(248,394)
	620,578	6,112,161	7,042	133,130	5,392,290	3,113,950	357,844	15,736,995
		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
	-	-	-	-	-	918,318	918,318
	-	-	1,520	(13,452)	-	-	(11,932)
	-	-	1,520	(13,452)	-	918,318	906,386
	-	-	-	-	-	(110,955)	(110,955)
	195,281	-	-	-	-	(195,281)	-
	195,281	-	-	-	-	(306,236)	(110,955)
	620,578	6,090,133	5,607	(8,931)	4,929,464	2,329,992	13,966,843
	620,578	6,090,133	5,502	53,462	4,929,464	1,983,462	13,682,601
	-	-	-	-	-	391,567	391,567
	-	-	(463)	38,571	-	-	38,108
	-	-	(463)	38,571	-	391,567	429,675
	-	-	-	-	-	(115,394)	(115,394)
	-	-	-	-	-	(115,394)	(115,394)
	620,578	6,090,133	5,039	92,033	4,929,464	2,259,635	13,996,882

Diesel & Motor Engineering PLC

Interim Financial Statements - For the 9 months period ended 31st December 2022

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