Tokyo Cement first quarter profits increase

Tokyo Cement Company (Lanka) Ltd, has reached and impressive first quarter performance with net profit attributable to ordinary shareholders soaring by a hefty 201 per cent to Rs. 162 million form Rs. 54 million a year earlier.

The group revenue had increased by 66 pc to Rs. 2.09 billion in the first quarter ended June 30, 2005 while gross operating profit was up by 62 pc to Rs. 276 million. Pre-tax profit reached a massive 329 pc increase to Rs. 170 million.

This was despite a 137 pc increase in finance income to Rs. 51.7 million. Consolidated after tax profit was up by 349 pc to Rs. 168 million from Rs. 37.3 million.

The joint Managing Director of Tokyo Cement, S.R. Gnanam told Lankapuvath that the first quarter had been outstanding as the company had regained a market share in the cement industry representing 30 pc.

He added that the fully-fledged operation of two cement bulk carriers has reduced freight cost apart from benefiting out of improved cost and energy efficiency.

The group had also produced more cement in tandem with growing demand for the quality offering of branded cement including Mitsui, Tokyo Super, Samudra, Hinode Pozalana and super mix concrete.

Demand has come from commercial constructions as well as residential market while there has also been a switch over from other brands.