Thursday, November 25, 2010

Tokyo Cement profits up 750%

Tokyo Cement Group for six months ended 30th September 2010 recorded a pre tax profit of Rs. 537.3 million as against Rs. 69.5 million for the same period previous year. Post tax profit was Rs. 514.9 million as against Rs. 60.5 million 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, the group continued to supply cement to most mega projects undertaken by foreigners in the country. The group enjoys 34 percent market share, it said announcing the interim results.

"The group imports its raw materials using its own ships which results in a cost saving and consequently a drop in the cost of production. The company’s biomass power plant project is now in full operation resulting in a reduction in the cost of electricity but also sales of excess power to the national grid. Due to reduction in interest rates there were saving on cost of borrowings," the company said.

The company operates several batching plants including one in Jaffna and their contributions were recorded at a very satisfactory level. Tokyo Cement Joint Managing Director S. R. Gnanam is optimistic that the results for the coming six months will continue to improve in comparison with the same period of the previous year.

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