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ManageMent report
Finance Expenses*
Net finance cost, which is usually a significant component in the cost
structure, reduced by 38% (increase of 16% in 2008/09) to Rs. 366 mn
(2008/09 Rs. 585 mn), due to lower interest rates and reduced level of
borrowings. As a result of increased profits during the last three quarters
and reduction in interest cost, the interest cover moved towards a favorable
position of 2.20 times to that of 1.31 times during the period of 2008/09.
Earnings
The net profit after tax increased by 178% (reduction of 56% in 2008/09) to
Rs. 248 mn (Rs. 89,444 - 2008/09) with the help of turnover increase and
the reduction in finance expenses during the year.
Earnings before interest and tax (EBIT) marginally increased to Rs. 778 mn
from Rs. 761 mn previous year. However, as seen from the graph below, EBIT
showed a significant improvement in the second half of the year compared
to the corresponding period in the previous year.
Earnings per share (EPS) increased to Rs. 28.53 by a percentage of 205%
compared to the last year’s EPS of Rs. 9.36.
EPS from continuing operations was Rs. 31.97 per share (Rs. 10.79 - 2008/09)
*Includes only continuing operations
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F i n a n C i a l r e v i e W
ANNUAL REPORT 2009/10 DIESEL & MOTOR ENGINEERING PLC
Financial highlights 05 Operational highlights 06 Chairman & CEO's Review 10 Board of Directors 14 Group Management Committee 18