Tokyo Cement Ltd, the island’s biggest cement maker, said that its group net profits had jumped 89 per cent for the 12 months to March, boosted by sustained demand in the construction industry.
The 22-year old company which operates a cement making plant in Cod Bay, Trincomalee, has benefited a lot from post-tsunami rebuilding and a surge in condominiums coming up in and around Colombo.
Sales for the 12 months to March 31, advanced 52 percent to 8.9bn rupees, while net profits jumped 89 percent to 629.35m rupees over the corresponding period 2005.
The results, which were announced after trading hours, came as a pleasant surprise to market players.
"The numbers exceeded our expectations of 605m rupees," explains Vajira Premawardhana Head of Research at Lanka Orix Securities.
Tokyo also imports cement and bags them at their plant in Colombo under different brand names.
Sri Lanka’s annual demand for cement is around 3.5Mt, with Tokyo supplying around 30 per cent of it. Holcim Lanka Ltd also has a significant presence in the local market.
Japan’s Mitsui Mining Company Ltd and the privately held St Anthony’s Consolidated Ltd each control 27.5 percent of Tokyo Cement.