Tokyo Cement records commendable growth

Tokyo Cement records commendable growth
Published: 25 November 2010

Sri Lanka’s Tokyo Cement Group for six months ended September 30 2010 recorded a pre tax profit of INR537.3m as against INR69.5m for the same period previous year. Post tax profit was INR514.9m as against INR60.5m for the same periods previous year; a growth of 750 per cent. Although the demand for cement was sluggish for the most of the period under review, the Group continued to supply cement to most domestic mega projects. The Group imports its raw materials using its own ships which results in a cost saving and consequently a drop in the cost of production.
 
The Companies’ Biomass Power Plant Project is now also in full operation which not only show a reduction in the cost of electricity but also sales of excess power to the National Grid. Due to reduction in interest rates there were saving on cost of borrowings. The company also operates several concrete batching plants including one in Jaffna and their contributions were recorded at a very satisfactory level, according to company reports.