Tokyo Cement Group 1H pre-tax profit soars by 750%

Thursday, 25 November 2010 01:22 - - {{hitsCtrl.values.hits}}

Tokyo Cement Group recorded a pre-tax profit of Rs. 537.3 m for the six months ended 30 September 2010 as against Rs. 69.5 m for the same period previous year. Post tax profit was Rs. 514.9 m as against Rs. 60.5 m for the same periods previous year – a growth of 750%.

Although the demand for cement was sluggish for the most of the period under review, due to the high quality of the Group’s products, it continued to supply cement to most mega projects undertaken by foreigners in the country.

The Group enjoys a 34% market share.

Tokyo Cement Group imports its raw materials using its own ships, which results in a cost saving and consequently a drop in the cost of production. Its Biomass Power Plant Project is now in full operation, which not only shows a reduction in the cost of electricity but also sales of excess power to the National Grid. Due to the reduction in interest rates, there were savings on cost of borrowings.

Tokyo Cement Group operates several batching plants, including one in Jaffna, and their contributions were recorded at a very satisfactory level. Joint Managing Director S. R. Gnanam expressed optimism that the results for the six months ahead would continue to improve in comparison with the same period of the previous year.