Sri Lanka Tokyo Cement December quarter net down 62-pct

EconomyNext – Sri Lanka’s Tokyo Cement Company (Lanka) reported December 2014 quarter net profit fell 62 percent to 195 million rupees from a year ago.

Earnings per share were 54 cents, according to interim results filed with the stock exchange.

Sales fell eight percent to 6.7 billion rupees in the quarter which saw he firm’s other income falling by half to 64 million rupees although costs and distribution expenses came down.

Income tax costs shot up 156 percent to 44 million rupees in the quarter in the company in which St. Anthony’s Consolidated has a 27.50 percent stake and Japan’s Nippon Coke & Engineering Co. 23.42 percent.

In the nine months to 31st December 2014, Tokyo Cement Company (Lanka) EPS were 4.07 rupees with net profit down 22 percent to 1.3 billion rupees and sales virtually stagnant at 22 billion rupees.

The company faces higher competition from imports after the government budget of January 29 removed customs duty on cement but this is expected to be countered by lower construction costs which will boost demand for cement.