ANNUAL REPORT 2024/ 25
Thi 2024/2025 financial year ha been one of the mo
Our revenue for the
Kingfishgr Mgtuphor
& Our Annual Report
https://www.dimolanka. com/2024-2025-dimo-annual-report/url.php?id=1
Much like the Kingfisher, a creature renowned for its unique, specialised structures that support incredible precision, agility, and speed, DIMO has focused on maximizing efficiency, minimizing impact, and maintaining momentum. The kingfisher's form has long inspired the scientific community for its ability to embody these very principles. This intrinsic drive for excellence, combined with its wide-ranging presence, unmatched insightfulness, endurance, and responsiveness to change, positions it as a trailblazing species—a true symbol of excellence and innovation.
Dedicated Microsite For the Annual Report
https://www.dimolanka. com/2024-2025-dimo-
annual-report/
Here at DIMO, we’re designed for the future. While the past financial year presented a period of considerable challenge, culminating in an overall reported loss, this phase was a critical component in our strategic momentum. It allowed us to intensely focus on streamlining and aligning the DIMO group, transforming it into an efficiently managed organization poised for sustainable growth. This deliberate recalibration has strengthened our foundations, enabling us to emerge more robust and resilient.
Today, our underlying structures have been engineered to perfection; designed to help us break through adversity and soar beyond the challenges of today. As we prepare to realign into a whole new paradigm of excellence, we're ready to revolutionize the landscape in which we operate and take flight into a future filled with infinite potential.
DIMO. Experience the power of momentum in motion.
FUELLING DREAMS AND ASPIRATIONS: OUR STRATEGIES FOR SUCCESS
Diversification:The versatility and opportunistic adaptability of a Kingfisher mirrors an organization's successful diversification. Just as the Kingfisher doesn't exclusively rely on one food source or habitat to survive and thrive, a diversified organization expands its offerings and operations into new markets or product lines. This strategic expansion reduces dependence on a single revenue stream, allows for resilience against market fluctuations, and creates new avenues for growth, much like the Kingfisher leveraging different food sources and habitats to ensure its survival and proliferation.
TABLE OF CONTENTS
4 Welcome to DIMO's 15th Integrated Annual Report
DIMO at a Glance
Our internal structures have positioned us to remain agile and responsive, and pursue progress.
Management Commentary
DIMO relies on the strength of its people and partners to achieve superior power and dynamism that enables success.
Enterprise Governance
A farsighted vision and the right controls help us mitigate threats and maintain focus on the things that matter the most.
8 | DIMO in a Nutshell | 20 | Value Creation Model | 100 | Stakeholder Engagement |
9 | Group Structure | 22 | Our Purpose-Driven Strategy | 105 | Risk Management |
11 | Chairman's Message | 31 | Overview of the Operating | 119 | Corporate Governance |
14 | Group MD & CEO's message | Environment | 159 | Investor Relations | |
17 | Board of Directors | 35 | Business Reports | ||
18 | Group Management Committee | 64 | Capital Reports |
2 Diesel & Motor Engineering PLC | Annual Report 2024/25
One highly distinctive behavioral characteristic of the Kingfisher that perfectly illustrates organizational differentiation is its unique and highly specialized hunting technique: the precise, almost surgical plunge dive.
While many birds prey on fish, the Kingfisher stands apart through its signature method. It doesn't just catch fish; it does so with an unparalleled level of focus, accuracy, and a visually stunning, specialized maneuver. This isn't merely what it does, but how it does it that defines its unique identity and effectiveness in its niche.
Similarly, organizational differentiation is about an entity's ability to stand out from competitors by performing a core function or delivering value in a distinctly superior, more efficient, or innovative way. Just as the Kingfisher's dive is instantly recognizable and signifies mastery in its domain, a differentiated organization achieves a competitive advantage by offering unique value that competitors struggle to replicate, making it the preferred choice in its specific segment.
Collaboration:One compelling behavioral characteristic of the Kingfisher that exemplifies collaboration in organization is the shared responsibility and coordinated effort exhibited by a breeding pair in building their nest, incubating eggs, and critically, in rearing their young.
While many species of kingfishers are often perceived as solitary hunters, the success of their progeny relies heavily on the intricate partnership between the male and female. Both parents diligently work together to excavate the precise burrow nest, share incubation duties, and tirelessly bring food to their growing chicks. Just as the Kingfisher parents coordinate seamlessly to ensure the survival and growth of their brood, organizational success in complex projects, product development, or market expansion is achieved through coordinated teamwork, shared accountability, and open communication that transcends individual functions to achieve collective triumph.
Sustainability
By maintaining the right controls, we can achieve a balanced performance and manoeuvre through changing conditions with ease.
166 Creating Harmony – One Step at a Time
183 Consolidated Statement of Environmental, Social and Governance (ESG) Performance
184 Notes to the Consolidated
ESG Statement
195 GRI, ESG and SASB Assurance
Financial Statements
We use every strategy and resource at our disposal to move onwards, deliver progressive performance and achieve success.
201 Annual Report of the Board of Directors
206 Directors' Interests in Contracts with the Company
208 Statement of Directors' Responsibility for Financial Statements
209 Board of Directors’ Statement on
Internal Controls
210 Statement of Responsibility of the Chairman, Group Managing Director/ Chief Executive Officer and Chief Financial Officer
211 Independent Auditors' report
214 Section 1 – Financial Statements
220 Section 2 – Corporate Information
223 Section 3 – Basis of Accounting
230 Section 4 – Specific Accounting Policies
and Notes
Annexures
We’re a truly one of a kind entity that is designed to adapt to a range of environments. We’re built to safeguard the well-being of our stakeholders, capture opportunities, and deliver value in the years ahead.
292 GRI Content Index
296 SASB Indicators
305 SLFRS S1 & S2 Index
307 | Independent Report Assurance |
310 | Ten Year Summary |
311 | Annexure 1 |
312 | Corporate Information |
314 | Notice of Meeting |
315 | Form of Proxy |
MOMENTUM IN MOTION 3
WELCOME TO DIMO'S
15th INTEGRATED ANNUAL REPORT
This Report has been careFully prepared as the primary communication tool For DIMO’s shareholders and stakeholders. It oFFers a balanced, transparent, and comprehensive overview oF the Group's eFForts to create sustainable value For society and to enhance enterprise value through the 12 months From 01 April 2024 to 31 March 2025.
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Our Integrated Annual Report goes beyond traditional financial reporting to present a holistic view of DIMO’s journey. It illustrates how we create, preserve, or erode value over time across the financial, social, environmental, and governance dimensions of our business.
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We integrate broader factors into our strategy and decision-making, leveraging the capital provided by stakeholders to drive value. We outline our strategic objectives for the short, medium, and long term, and demonstrate how we align our operations, resources, and impacts to achieve these goals.
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At DIMO, we apply a double materiality approach to provide a comprehensive picture through our Integrated Annual Report. This fosters trust and helps stakeholders make informed decisions, identifying factors that influence our ability to create or sustain value (financial materiality) and our impact on the environment, communities, and society (impact materiality) across the short, medium, and long term.
Our Approach to Developing the 2024/25 DIMO Integrated Report
The 2024/25 Integrated Report was developed using the inputs of the Board of Directors and Group Management Committee, business plans, performance and internal and external reporting requirements.
A cross-functional team led by the CFO coordinated content creation, with the involvement of business and segment heads. The Group Management Committee and Board contributed to and approved the report, supported by independent assurance and final sign-off from the Group Integrated Report Approval Committee.
Stakeholder-Centric Value: Benefits to stakeholder
Shareholders
Better insight into long- term sustainability and risk management practices for more informed investment decisions
Employees
Deeper insight into the company’s values and strategic goals, fostering a stronger sense of purpose and motivation
Customers
Recognize the company's dedication to ethical conduct and social responsibility, fostering greater trust and, in turn, stronger brand loyalty
Figure 01: Double Materiality
Major Global
Events & News
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Impact materiality
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The company's impact on people and the planet
Top Down
(World's insight)
Regulatory
Requirement
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Double Materiality
Your Industry & Peers
Financial materiality
The impact of global risks and opportunities on your company
Business Partners
Understand the company's long-term vision for shared value to enable better alignment and collaboration
Communities
Assess the company’s local environmental and social impact to gauge its value as a corporate citizen
Regulators and governments
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Verify corporate compliance and responsible conduct, fostering good governance and sustainable practices
Stakeholders Impact & Concerns
Risk Opportunity Company
Strategy & Goals
Bottom Up
(DIMO insight)
Dedicated Microsite For the Annual Report
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https://www.dimolanka.com/2024-2025-dimo-annual-report/
AI Powered Interaction
https://www.dimolanka.com/2024-2025-dimo-annual-report/url.php?id=2
4 Diesel & Motor Engineering PLC | Annual Report 2024/25
Table 01: Our Reporting Landscape
Reporting Boundary and Scope Assurance Regulatory And Reporting Framework
Financial reporting boundary
Aligns with our financial statements reporting boundary (defined by control and joint control) and includes
Diesel & Motor Engineering PLC
referred to as DIMO (Parent)
Subsidiaries
Joint Venture
Non-Financial Reporting Boundary Value Creation Model (Page 20) Purpose Driven Strategy (Page 22)
Sustainability Agenda
2030 (Page 22)
Operating Environment (Page 31)
Business Reports (Page 35)
Capital Reports (Page 64)
Risk Management (Page 105) Corporate Governance (Page 119) ESG Performance
Statement (Page 183)
Figure 02: Capital Navigation Icons
Financial Capital FC
Assurance from the independent auditors on the consolidated financial statements as per Sri Lanka Auditing standards (Page 211)
Assurance from the independent auditors on the integrated report as per Sri Lanka standard on Assurance engagements 3,000 (revised)
Assurance from the independent auditors on the statement on
GRI standards (Page 195)
ESG Performance (Page 195)
SASB disclosure as per Sri Lanka standard on Assurance Engagements 3000 (revised) (Page 195)
Assurance on our web disclosures: Independent Assurances have been obtained for both our financial and non-financial information from Messrs. KPMG on the Financial Statements, Integrated Reporting practices, ESG
The Companies Act No. 07 of 2007
The Listing Rules of the Colombo Stock Exchange (CSE)
Sri Lanka Financial Reporting Standards
Sri Lanka Accounting Standards (LKASS/ SLFRSS)
Integrated Reporting
- International Integrated Reporting Framework (International Framework) 2021, of which the Company is a Business Network Member
Guidelines for the Presentation of Annual Reports & Handbook on Integrated Corporate Reporting Issued by CA Sri Lanka
- IFRS Foundation’s International Framework
ESG Reporting
GRI Standards issued by the Global Sustainability Standards Board (GSSB). (This report has been prepared accordance with the GRI Standards: Comprehensive Option)
The Industry Standards Published by The Sustainability Accounting Standards Board (SASB)
Multiline & Specialty Retailers & Distributors | Agricultural Products | Engineering & Construction Services
Manufactured
Capital
Performance Statement indicators,
MC and indicators from GRI Standards and relevant SASB Standards.
United Nations Sustainability Development Goals (SDGs)
Human Capital HC
Intellectual Capital IC
Ten Principles of the United Nations Global Compact (UNGC)
The Greenhouse Gas Protocol Corporate Standard Published by World Resource Institute (WRI) And
Social and
Relationship Capital
SRC
World Business Council for Sustainable Development (WBCSD) (Used to Measure and Report on The Group’s
Natural Capital NC
Forward Looking Statements: This report contains forward-looking statements based on current expectations, which may differ materially from actual outcomes due to emerging risks, opportunities, or other significant factors.
Carbon Footprint)
Code of Best Practice on Corporate Governance Jointly Issued by the Institute of Chartered Accountant of Sri Lanka and Securities and Exchange Commission of Sri Lanka.
Ǫualitative Disclosures for SLFRS S1 And S2
MOMENTUM IN MOTION 5
WELCOME TO DIMO'S
15th INTEGRATED ANNUAL REPORT
Navigating Our 2024/25 Annual Report
https://www. dimolanka.com/2024-2025-dimo-annual-report/url.php?id=3
Integrated Annual Report oF Board oF Directors
The Board of Directors of Diesel & Motor Engineering PLC, hereby present DIMO’s 15th Integrated Annual Report to its Financial Capital Providers and other stakeholders.
The Board, to the best of its knowledge, believes that the content in this report is prepared after carefully assessing all material matters that affect DIMO's ability to create value in short, medium and long term. The Board also agrees that the Integrated Annual Report has been presented in
We recognize that an annual report achieves its full potential only through robust stakeholder engagement. To this end, our 2024/25 Annual Report is presented on a dedicated Microsite, enhanced with cutting-edge technologies to provide an interactive and immersive experience for all users. We are committed to continuously elevating the stakeholder experience, offering diverse and optional engagement methods to suit individual preferences.
This year, our Annual Report prioritizes ease of navigation, accessibility, and the strategic use of modern technology to reach a broad spectrum of stakeholders.
Key innovative Features include:
Profile Dependent Content: A profile selector at the Microsite's outset allows users to tailor content to their specific needs and preferences.
accordance with the International Integrated Reporting Council's Integrated Reporting Framework 2021.
The Board of Directors further acknowledges that reasonable care has been exercised in the preparation and presentation of this Integrated Report and Financial Statements while preserving its integrity.
Signed by the Board on 5th June 2025
Augmented Reality Experience: Engage with the Chairman's message through immersive
augmented reality technology.
AI-Powered Avatar Assistance: An avatar-driven AI assistant provides voice interaction for enhanced user support.
Dynamic Visuals: Animated elements throughout the Microsite create a vibrant and engaging user experience.
Enhanced Inclusivity: Demonstrating our commitment to social responsibility and wider accessibility, we offer a concise summary in braille. Furthermore, we are pioneers in corporate reporting by incorporating sign language across our video content for greater inclusivity.
Multilingual Access: The Chairman's and Group CEO's messages are available in PDF (English, Sinhala, and Tamil) and as audio and video formats (English, Sinhala, and Tamil).
Downloadable Financial Statements: Financial statements can be downloaded as PDFs in English,
Sinhala, and Tamil.
Gamified Engagement: To foster excitement and active participation, the Microsite includes
gamification, allowing users to test their knowledge on DIMO and compete on a leaderboard.
Advanced Accessibility Features: Our Microsite is equipped with advanced accessibility features, ensuring equal access and opportunity for individuals with diverse abilities, particularly those with varying levels of visual and hearing impairments.
Dynamic Chart Generator: Users can interact with and customize charts and graphs, generating
printable soft copies tailored to their specific requirements.
AI-Assisted Search: Enhanced AI-assisted PDF search functionality simplifies the process of finding specific content within the Annual Report.
Dedicated Support Channel: A dedicated contact number has been established for all stakeholders
to address queries regarding the Annual Report information.
Truly Sustainable Reporting: In a commitment to environmental sustainability, we have forgone the traditional printing of hundreds of annual reports. Instead, the report is accessible via multiple ǪR codes on a simple single-fold card, enabling access on any device.
Ranjith Pandithage
Chairman
Dr. Harsha Cabral
Independent
Non-Executive Director
Manil Jayasinghe
Independent
Non-Executive Director
Dilrukshi Kurukulasuriya Executive Director
Rajeev Pandithage
Executive Director
Wijith Pushpawela
Executive Director
Asite Talwatte
Independent
Non-Executive Director
Gahanath Pandithage Group Managing Director/ Chief Executive Officer
Suresh Gooneratne Executive Director/ Chief Financial Officer
R.A Jayawardane
Independence
Non- Executive Director
Mohan Pandithage
Non-Executive Director
H.A.C.Perera
Independence
Non-Executive Director
Chaminda Ranawana
Executive Director
6 Diesel & Motor Engineering PLC | Annual Report 2024/25
A DIVERSE STRENGTH
DIMO at a Glance
With diverse capabilities and attributes at our disposal, we are ideally positioned to adapt to change, and deliver an effective
performance across wide-ranging conditions.
Kingfishers exhibit remarkable diversity, with over 90 species recorded worldwide, with seven found in Sri Lanka alone. Their presence across every continent except Antarctica underscores their extraordinary ability to adapt to a wide range of habitats and extreme climates – which in turn resonates with the power of our diverse solutions, and our time- tested capacity to navigate diverse environments with ease.
MOMENTUM IN MOTION 7
9 Group Structure
11 Chairman's Message
Board of Directors
Group Management Committee
8 DIMO in a Nutshell 14 Group MD & CEO's message
DIMO IN A NUTSHELL
DIMO: An Evolving Diversified Conglomerate
Since 1939, DIMO has been a Diversified Conglomerate dedicated to building lasting relationships and enriching the lives of Sri Lankans.
We strive to be your "Perfect Partner" by enhancing your lifestyle multiple times every day. We achieve this by offering world-class solutions and representing some of the best-engineered brands globally, whose excellence further strengthens our own.
Our unique culture, driven by a strong sense of purpose and core values, forms the foundation of our value creation philosophy. Our key sustainability initiatives demonstrate our commitment to a better tomorrow.
Our Purpose
Our purpose is to fuel dreams and aspirations of the communities we serve.
Our Brand Promise
We are building sustained relationships with world class principals and stakeholders as their Perfect Partner.
Our Values
Figure 01: Our values
1964
DIMO becomes a Public Ǫuoted company
Practice oF Being a
honesty
catalyst to empower people,
to deliver results
Do what you do to the best oF your ability
Amuse customers
Taking responsibility
through every For your
interaction actions with them
1945
DIMO is incorporated as a Private Limited
Liability company
1939
Four young entrepreneurs started DIMO as an automobile related business
More About DIMO
https://www.dimolanka.com/ about-us/
Our core values are the deeply ingrained principles that guide all our decisions and actions; they serve as our cultural cornerstones.
Our PerFect Partnerships
As your Perfect Partner, the way we cultivate relationships with our stakeholders, both in Sri Lanka and globally, has been fundamental to our enduring presence, achievements, and ongoing operations.
We foster passionate and committed relationships with our customers, offering prompt and caring support powered by the right technologies to deliver effective solutions. Our employees are treated with dignity, respecting diversity and ensuring everyone is included in all our endeavors. Furthermore, our mutually beneficial relationships with our principals open up limitless possibilities for growth.
Our Journey
DIMO’s origination as a business entity goes way back to 1939.
Integrity
People Centricity
Excellence
Customer Delight
Accountability
GROUP STRUCTURE
LOCAL
Diesel & Motor Engineering PLC 1
Figure 02: Group Structure
INDUSTRY
Learn more about our Subsidiaries
https://www.dimolanka.com/ about-us/our-subsidiaries/
BUSINESS SEGMENT
Plant Seeds (Pvt) Ltd3
PlantChem (Pvt) Ltd4
DIMO Travels (Pvt) Ltd5
DIMO Industries (Pvt) Ltd6
DIMO Lifeline (Private) Limited7
Moveflex (Private) Limited8
Virgin Oil International (Pvt) Ltd9
Azend Technologies (Pvt) Ltd10
Mansel Ceylon (Pvt) Ltd11
Associated Laboratories (Pvt) Ltd12
Tropical Health Food (Pvt) Ltd13
DI Solar Beliatta (Pvt) Ltd14
DIMO Solar Anuradhapura (Pvt) Ltd15
DIMO Solar Galle (Pvt) Ltd16
DIMO Solar Galle Two (Pvt) Ltd17
DIMO Solar Galle Three (Pvt) Ltd18
DIMO Solar Galle Four (Pvt) Ltd19
DIMO College of Higher Education
(Pvt) Ltd20
DIMO Global PTE LTD21
DIMO Australia Pty Ltd22
DIMO Coastline Pvt Ltd 23
DIMO Bangladesh Pvt Ltd 24
Diesel & Motor Engineering PLC
-Uganda Branch25
DIMO Lanka Company Ltd26
United DIMO Company Ltd27
Agriculture
1 3 4 9 13
Building Services
1 2
Construction
1 2 24
Digital
10
Education
1 20
Healthcare
2 7 11 12
Home and Garden
1
Industrial
1 2 6 14 21 23 24 25 26 27
Mobility
1 5 8 22
Power, Energy and Water
2
DIMO (Pvt) Ltd
Vehicle Sales
Automotive Engineering
Solutions
Agriculture
Retail
Power Engineering & Building
Services
Infrastructure
Engineering
Healthcare
FOREIGN
1 2 14 15 16 17 18 19
* Divested Interests : AzendTech LLC-FZ − Closure on 17th March 2025 | Azend Technologies (Pvt) Ltd − Closure on 8th April 2025
MOMENTUM IN MOTION 9
FINANCIAL AND ESG HIGHLIGHTS
Customizable Charts & Report Generator
https://www.dimolanka. com/2024-2025-dimo-annual-report/url.php?id=4
Group Revenue
Rs. 50,175 million(2023/24 - Rs 43,644 million)
Group Loss After Tax
Rs. 1,308 million(2023/24 - Profit Rs. 183 million)
Employee Engagement Score
4.27
(2023/24 - 4.2)
Turnover per employee
Rs. 22.16 million(2023/24 - Rs. 22.58 million)
Net Assets Per Share
Rs. 1,618.08(2023/24 - Rs. 1,776.76)
Customer Satisfaction Index
91.2%
(2023/24 - 91%)
GOVERNANCE
ENVIRONMENT
SOCIAL
Anti-harassment Policy and
Helpline
17 reported & resolved
(2023/24 – 17 Reported & resolved)
Carbon emission to generate one million turnover
2.43 tCO2e
(2023/24 – 0.11 tCO2e)
DIMO Academy for Technical Skills (DATS) was able to produce.
33 graduates
(2023/24 – 51 graduates)
Payment of taxes and other tariffs
Rs. 10,359 million(2023/24 – Rs. 5.782 million)
No major non compliances in Environmental & Ǫuality Management System and Occupational Health & Safety.
2 whistle-blower cases reported during
the year.
(2023/24 – zero)
Water consumption to generate one million turnover
1.49 m3
(2023/24 – 1.60 m3)
Non-renewable energy consumption to generate one million turnover
0.36 GJ
(2023/24 – 1.18 GJ)
Voluntary investments in social progress
Rs. 62.7 million(2023/24 – Rs. 31 million)
Employee benefits distributed
Rs. 5,865 million(2023/24 – Rs. 5,571 million)
10 Diesel & Motor Engineering PLC | Annual Report 2024/25
CHAIRMAN'S MESSAGE
Chairman's multilingual Video, Audio and PDF about the finunciul ygur.
https://www.dimolanka. com/2024-2025-dimo-annual-report/url.php?id=5
Dear Shareholders,
It has always been a privilege and a pleasure for me to be the Chair of the Board of Directors of the company and bring you an update of the year that passed by and the outlook. Historically, I have always had the privilege of briefing you about our achievements financially and otherwise, and how well positioned we are to face the future. Perhaps, this year, this message is slightly different in terms of the story about our financial achievements, as the group has made a loss before tax, although the positivity regarding all other aspects, including the future, remain the same.
A strong headwind
Automobile, construction, agriculture, power, water and healthcare are industries that are key industries on
which the fortunes of the group rests. Taken individually, all these had their own challenges, which may not be reflected in the country’s macro-economic indicators.
We completed another financial year without vehicle imports due to the import ban on vehicles that prevailed, though the ban was lifted towards the end of the financial year signalling the prospects of an automobile led growth. The collapse of infrastructure related investments, consequent to the economic crisis, strongly affected the construction, power and water related businesses stalling many projects, resulting in a reduction in business and challenges in securing payments for work done. The recovery of the infrastructure sector has been rather slow and has affected the businesses in this domain. This also meant reduced demand for construction machinery, heavy commercial vehicles used in the construction industry and other vehicles used in businesses feeding the construction industry.
The agriculture inputs business was a key contributor to the loss, with profitability severely impacted due to erosion of margins because of intense
The indications are that the company will overcome the challenges and obstacles it Faced and be on its course towards profitability and growth in the ensuing year.
As we move Forward, we remain Focused on our core strategy and are committed to driving growth across our portFolio.
Our eFForts to diversiFy, diFFerentiate, and collaborate will continue to be the cornerstone oF our approach.
MOMENTUM IN MOTION 11
CHAIRMAN'S MESSAGE
competition in the market for agricultural inputs. Changes in weather patterns too prompted disposal of stocks at lower margins to avoid a stock build up. Investments in the agriculture segment, including the investments in agriculture related exports, too contributed to the loss for the year, with revenue streams from these investments being delayed more than expected.
Healthcare segment, a good part of which is fed by bio-medical equipment, similarly experienced a severe lack of demand from the government sector as well as the private sector.
Impact oF New Investments on PerFormance
During the past few years, we made strategic acquisitions or entered strategic new ventures. Majority of these investments were Agriculture segment related. One of the main reasons for our foray into Agriculture based expansions was to consolidate the agriculture business by increasing our footprint in the domain, and to enhance our presence in Agri inputs, value addition and Agri outputs. This included exports as well, in line with our strategic priorities. However, most of these investments took longer than anticipated to generate envisaged revenues. These delays too contributed to the loss made for the year. The increase in coconut prices was another factor that adversely affected our ventures in virgin coconut oil, coconut milk and charcoal production businesses.
Collection of trade receivables was an added concern, which perhaps was led by the recent economic crisis, though improvements were noticed towards the latter part of the financial year.
Strategic Direction
We continue to pursue diversification, differentiation and collaboration as the Strategic Pillars for growth. Technology,
12
People and Sustainability are three areas through which these strategies are brought to life.
Looking Inwards
Against a background of many adversities. our key segments were able to produce positive results only to be totally offset by losses made in the agriculture segment and a few other businesses.
During the toughest times, the group was able to sail through, partly due to revenue streams produced by relatively new businesses such as agricultural inputs, though same could not be said about the financial year 2024/25, due to the reasons explained. With strategic adjustments made to our approach, the agriculture inputs business is expected to perform well in the ensuing year.
The prolonged vehicle ban made us rationalise our investments in automobile business, in some cases discontinuing a few of the customer interaction points spread over the country. With vehicle imports being permitted, we are considering improving our footprint in this segment. The Agri machinery businesses led by tractors and harvesters boosted the produced satisfactory results showing good prospects for the future. We are closely watching the developments in the automobile market, and are ready to face challenges such eventualities may bring about.
In terms of geographical diversification, we could see our construction machinery business in Bangladesh maturing to take its due place in the market. We have also mapped our future footprint in the Education segment and the first steps will shortly be taken for expansion, when we re-locate Dimo Academy for Technical Studies (DATS) to a more convenient location with increased capacity.
The Healthcare segment has acquired a well-rounded portfolio during the past few years through acquisitions
and diversification. The company is also seeking aggressive medium-term growth in the pharmaceutical business through our recently acquired two subsidiaries.
Technology TransFormation
In alignment with our strategic focus on innovation and efficiency, the implementation of SAP marked a significant milestone in our journey towards digital transformation. This advanced enterprise resource planning system helped to further streamline our operations, enabling us to integrate processes across all business segments more effectively. By embracing SAP’s capabilities, we have enhanced data visibility, improved decision-making, and strengthened our ability to respond swiftly to market dynamics.
The adoption of SAP positions our company to confidently navigate the complexities of today’s rapidly changing business environment. As a key enabler, it allows us to keep pace or stay ahead of industry trends and compete in the marketplace. This transformation underscores our commitment to leveraging technology as a cornerstone of growth, ensuring that we remain adaptable and resilient in the face of future challenges.
Our People
Traditionally, DIMO has been a company that has relied heavily on its people to succeed. Over the years we have been investing in our employees to deliver on this expectation. I am happy to inform you that DIMO was recognised as a “Great Place to Work” for the 13th consecutive year, during the financial year under review.
Sustainability
Sustainability has emerged as a cornerstone of modern business success, shaping the way companies operate, innovate, and grow. For DIMO, the commitment to sustainability is not only an ethical imperative but also a strategic one.
By embedding sustainable practices into every facet of our operations, we secure long-term value for our shareholders. This focus on economic viability enables us to remain resilient amidst shifting market dynamics and regulatory frameworks.
Our "Sustainability Agenda" exemplifies this dedication by outlining a roadmap for change. This agenda encompasses ambitious yet attainable goals to reduce our carbon footprint, enhance resource efficiency, and foster inclusivity across our diverse business segments. Through targeted initiatives in renewable energy, eco-friendly technology adoption, and strategic partnerships, we aim to align our growth trajectory with the principles of sustainability. By focusing on innovation and collaboration, the agenda not only ensures compliance with global best practices and standards but also positions DIMO to lead as a pioneer in responsible business practices. In doing so, it empowers us to balance profitability with purpose, creating a legacy of enduring progress.
Looking Ahead
The indications are that the company will overcome the challenges and obstacles it faced and be on its course towards profitability and growth in the ensuing year. The opening of the automobile market is expected to lead the way in growing our revenues substantially. Return of infrastructure projects and the likely commencement of power and water related projects are expected to further boost revenues. The Agricultural segment’s return to profitability upon strategic changes, is also expected to contribute positively. Business plans indicate a turnaround in financial performance to provide satisfactory returns.
As we move forward, we remain focused on our core strategy and are committed to driving growth across our portfolio. Our efforts to diversify, differentiate, and collaborate will continue to be the cornerstone of our approach. We are optimistic about the future and confident
in our ability to overcome challenges and seize opportunities.
Returns
The result for the year does not warrant declaration of a dividend for the financial year 24/25. However, with the expectation of favourable changes in external factors and changes to strategy in certain segments such as Agriculture, the company is on course to returning satisfactory results for the financial year 25/26.
Acknowledgement
DIMO is privileged to have best-in-class principals with whom we collaborate to deliver state of the art solutions in Sri Lanka. They are an important part of the DIMO eco-system and has been playing a vital role in evolution of DIMO. I acknowledge the influence they bear in shaping DIMO to what it is today and thank each foreign principal who has contributed to the success of DIMO, over the years.
Members of my tribe led by my management team have worked as a closely-knit unit to face challenges with foresight and determination. The Board of Directors, as always, has strengthened me and offered its invaluable advice to sail through the difficult times. I offer my heartfelt thanks to all of them.
Your Sincerely,
Ranjith Pandithage
Chairman
5th June 2025 Colombo
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MOMENTUM IN MOTION 13
GROUP MANAGING DIRECTOR / CEO'S MESSAGE
Dear Stakeholder,
It is with conviction and confidence that I address you in DIMO’s Annual Report for 2024/25, titled “Momentum in Motion.” This has been one of the most difficult years in our company’s history in terms of financial performance. Yet, we emerge from it stronger, having laid the foundation for sustainable transformation.
This year unfolded against ongoing economic instability. Although 2024 showed signs of macroeconomic recovery, reflected in sectors such as tourism and construction, overall household income, employment, and general welfare levels remained below pre-crisis standards. The national poverty rate stayed high, and these socioeconomic challenges directly affected our markets, particularly vehicle sales. While the lifting of the vehicle import ban offered some relief, high import tariffs continued to impact affordability and demand.
Despite these conditions, we remained focused on long-term value creation. We advanced structural reforms, digital transformation, and future-focused initiatives, reaffirming our resilience and commitment to stakeholder value.
Though we report a financial loss this year, we take pride in the meaningful groundwork put in during the year to ensure sustainable growth in upcoming years. This report is a reflection of that journey, and our commitment to being the “Perfect Partner” in all that we do.
Our Purpose Endures
We continue to stand by our purpose— "Fueling Dreams and Aspirations”, and our brand promise of being the “Perfect Partner”. These principles guide our strategic alignment and stakeholder engagement. Recognising shifts in our operating context, we remain committed to our three strategic pillars: Diversification, Differentiation, and Collaboration, which are embedded through nine strategic priorities, detailed in this report.
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We continue to stand by our purpose—"Fueling Dreams and Aspirations”, and our brand promise oF being the “PerFect Partner”. These principles guide our strategic alignment and stakeholder engagement.
We remain committed to our three strategic pillars: Diversification, DiFFerentiation, and Collaboration, which are embedded through nine strategic priorities.
14 Diesel & Motor Engineering PLC | Annual Report 2024/25
Digital TransFormation Gaining Momentum
Following last year’s major ERP implementation, 2024/25 saw us navigate the complexities of change while ensuring operational continuity. Our team’s dedication ensured the stabilization and optimization of Phase 1. We look ahead to launching Phase 2 of the ERP in 2025/26. This next phase will introduce a suite of value-adding functionalities to enhance the experience of both our internal and external stakeholders.
In parallel, we embarked on several digitalization projects across internal operations to strengthen controls, enhance efficiency and ensure realtime data accuracy, and improve the stakeholder experience. A dedicated transformation team now partners with business units to drive digital and AI-led innovation initiatives from which we anticipate tangible benefits in the coming year and beyond.
Year oF resilience and building For Future
The economic tide began to turn in the latter part of the financial year, marked by a recovery in construction activity and the lifting of the vehicle import ban. While the full impact of these developments will be realized in FY 2025/26, our performance this year reflects the resilience and perseverance of our teams.
Despite constrained market conditions, the Mobility segment posted higher financial performance during the year compared to the preceding year. Leveraging our local vehicle assembly operations and strategic import allowances, we continued to meet customer needs and kept operations active even during vehicle import restrictions. The recent introduction of electric vehicles, positions this segment well to support our Group’s sustainability agenda and deliver improved performance in the upcoming year.
The Automotive Engineering Solutions Segment remained a cornerstone of Group performance, generating the highest contribution to Group PBT for the year. Beyond financial results, we fulfilled critical fleet maintenance needs of our valued customers during the vehicle import ban where they did not have access to renewing their fleet, yet required cost efficient fleet operations, thereby reinforcing our value proposition. The education division within the segment gained traction, offering vocational pathways for youth, and expansion is planned for FY 2025/26.
The Retail segment, although challenged by reduced household spending and margin pressure, recorded higher financial performance during the year compared to last year. Growth was led by the revenue streams of Automotive Parts and Tyres, while many revenue streams were under pressure on performance. The segment underwent structural changes and realignment of the sales operation to align with the current market demands. Strategic supply chain realignment and process improvements are expected to yield stronger results in the upcoming year. The Chemical Solutions arm of the segment plans growth in terms of financial performance and sustainable product innovations in different avenues within the chemical solutions domain.
Despite a turnover increase during the year, the Agriculture segment posted a negative contribution to the Group Profit for the year, impacted by adverse climatic conditions and severe price competition affecting Agri inputs revenue streams. Nonetheless, further investments were made in capital expenditure during the year on new initiatives, Agri Technology and improvements within the segment, appreciating the potential of this industry, portfolio strategies of the group and the sustainable contributions to the group and the industry. We have stepped in to the export market during the year with our locally produced value-added products, and forward to seeing this area taking
positive turns during 25/26. We remain confident in this sector’s future and are committed to unlocking its full potential in FY 2025/26 and beyond.
With the construction sector regaining momentum, the Infrastructure Engineering Segment is poised for revival. The pipeline for FY 2025/26 reflects renewed optimism on the performance of this segment.
The Health Care Segment encountered headwinds with reduced demand for medical equipment. Efforts are underway to revitalise performance across the pharmaceutical and consumables streams.
Power Engineering and Building Technologies Segment took a major step in the renewable energy arena during the year whilst contributing as a strong performer within the Group. Apart from the major projects that are undertaken in power engineering and building solutions, the renewable energy portfolio gained significant traction, contributing both financially and toward our long-term sustainability goals.
We are confident of our plans for the ensuing year and are looking forward to seizing market opportunities to bounce back strong with our initiatives and the momentum built up this year in each segment, and thereby grow our Group financial performance positively.
Operational Focus
Reflecting on our performance during the year under review, we have identified key operational areas that warrant targeted attention and action in the upcoming year. Margin management, working capital optimisation, and optimising new structures and processes for overhead cost management have emerged as operational priorities to strengthen operating profitability and cash flow management, complementing our growth ambitions. Dedicated teams have been aligned to drive initiatives in these focus areas.
MOMENTUM IN MOTION 15
GROUP MANAGING DIRECTOR / CEO'S MESSAGE
Accelerating into the Future
As we look ahead, we do so with clarity and purpose. Our transformation journey is anchored in our strategic pillars and the nine strategic priorities (pg 22);
To execute this roadmap effectively, we are realigning our core functions, Marketing, HR, IT and Finance for sharper market development, to drive digitalisation, to align with emerging talent and cultural shift needs and to support innovation and growth.
The strategies, guided by the definitive sustainability agenda of the group, and the risk management framework; have geared us to accelerate into the future with built up momentum.
Value chain in Focus
To realize our ambitions for accelerated growth and strategic transformation, we remain steadfast in our commitment to creating lasting value for all stakeholders. As a key enabler of this journey, we drew our focus to optimizing value chains across all facets of the organization. We have made concerted efforts to meticulously design and streamline our value chains, aligned with the successful implementation and operationalization of our ERP system. Critical functions have been strategically repositioned on a gradual yet deliberate path towards centralization.
Information flow mechanisms have been refined, enabling agile decision-making and a sharper customer focus across the enterprise, driving towards an enriched customer experience.
Stewardship in motion
Our passion and commitment to our purpose and brand promise is at all times harboured in a vigorous framework of governance, risk, and opportunity management. These frameworks encompass corporate governance, IT & cybersecurity governance, and sustainability governance, all of which
provide the structure within which our operations are conducted.
DIMO’s values are ingrained across the organization through consistent policies and practices. We’ve also enhanced our risk and opportunity management systems to proactively address uncertainties while embedding sustainability into strategic decisions.
Elevated Employee Experience: Enriched Customer Experience
We believe that it is our valued staff members that make it happen, all the time, and every time. At DIMO, we firmly believe that delivering a superior and enduring customer experience begins with cultivating a highly engaged, empowered, and fulfilled workforce. This belief is a cornerstone of our ongoing transformation agenda.
To that end, we have prioritized the holistic development and retention of talent, focusing on nurturing a learning-oriented culture and instilling accountability for customer excellence at every level. Key initiatives are underway, including enhanced learning and development interventions.
Assurances
At DIMO we uphold Transparency as a fundamental commitment to our stakeholders. Keeping to the highest standards of ethical conduct and disclosure, we ensure the integrity and reliability of all information presented in our corporate reporting. This Integrated Annual Report is a reflection of that commitment. In addition to the statutory independent auditors’ assurance, we have obtained third-party assurance for disclosures as stated in the Reporting Landscape [Page 5]
Sustainability and ESG Commitment
In alignment with our strategic imperatives, we continue to advance our sustainability agenda by embedding
environmental, social, and governance (ESG) considerations into our business model. Our ‘Sustainability Agenda 2030’ outlines our long-term vision and specific targets for contributing positively to society and the environment, while sustaining financial growth.
This year’s report details our key ESG performance indicators and the progress we have made. Recognizing the escalating significance of climate risk, we reaffirm our role as a responsible corporate citizen by addressing climate challenges with urgency and purpose.
Looking ahead with Confidence
As we enter FY 2025/26, we do so with clarity, optimism, and purpose. The resilience shown, the momentum built, and the strategic realignment undertaken position us well for future success.
On behalf of the Board of Directors and the leadership team, I extend our heartfelt thanks to our employees, partners, customers, and shareholders. Your continued trust and support inspire us to move forward - Not just progressing, but accelerating -towards a future defined by transformation, inclusive growth, and long-term value creation.
Yours Sincerely,
A G Pandithage
Group Managing Director/ Chief Executive Officer
5th June 2025
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16 Diesel & Motor Engineering PLC | Annual Report 2024/25
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