Tokyo Cement Plc saw its April-June quarter net profit increase 38 per cent YoY to LKR643.8m (US$4.42m) amid strong top-line gains and better cost management.
The group was able to keep its operational costs in check as distribution and administrative costs increased only two and four per cent YoY, to LKR680.3m and LKR267m, respectively. This boosted the group’s operational profit 42 per cent YoY to LKR883.5m. However, the income tax paid for the period rose 237 per cent YoY to LKR119m.
Cement sales have risen with strong demand from Sri Lanka’s private and household sectors as well as state projects recommencing, reports the Sri Lankan Daily Mirror.
The government increased the price of 50kg cement bag by LKR60 with effect from 30 June 2016 in line with the revisions to the value added tax (VAT). However, the implementation of VAT has been suspended by the courts, while no reduction in cement prices has been announced so far.