Tokyo Cement’s 1H profits soar by 287% to Rs. 1.26 b
Monday, 11 November 2013 00:19
-
- {{hitsCtrl.values.hits}}
Tokyo Cement Company Plc has reported a profit after tax growth of 286.9% to Rs. 1.26 billion y-o-y in 1H 2013/14, amid a 6% y-o-y decline in cost of sales and the resultant increase in the gross profit margin.
First Capital Equities said Tokyo Cement revenue growth was flat at Rs. 7.6 b while its cost of sales declined by 7% y-o-y from Rs. 6.6 b to Rs. 6.2 b. During the period, other income declined by 37% y-o-y from Rs. 245.4 m to Rs. 153.9 m while distribution expenses fell by 3% to Rs. 645.9 m although administrative expenses rose by 59% y-o-y to Rs. 90 m. Net profit for the company meanwhile rose by 166% from Rs. 232.6 m to Rs. 619.7 m during 2Q2014.
Acuity Stockbrokers research said as part of its expansion strategy, Tokyo Cement is planning a US$ 50 m investment which includes a new power plant and the expansion of its shipping fleet and harbor operations.
The company is in the process of seeking BOI approval for these expansion projects.
John Keells Stock Brokers said sharp improvements in GP and operational margins have driven earnings at Tokyo Cement despite flat revenues.
