Sri Lanka’s Tokyo Cement returns to profit in Dec 2019 quarter
ECONOMYNEXT – Tokyo Cement Plc, which runs grinding plants in Sri Lanka and also distributes imported cement earned profits of 257 million rupees in the December quarter, reversing losses last year, helped by lower costs.
The firm reported earnings of 64 cents for the quarter. In the 9 months to December 2019, Tokyo Cement reported earnings of 4.02 rupees, on total profits of 1.6 billion rupees against a loss of 663 million rupees last year.
The stock closed at 47.30 rupees up 60 cents on Wednesday.
Revenues fell 13 percent to 8.2 billion rupees in the quarter, but cost of sales fell at a faster 23 percent to 6.0 billion rupees, helping grow gross profits 32 percent to 2.2 billion rupees.
Distribution expense grew 18 percent to 1.05 billion rupees.
Sri Lanka has cut value added tax on cement, but also tightened price controls. Tokyo Cement has been using coal ash from Sri Lanka’s power plants to supplement clinker at its grinding plants.
Last year’s losses were also worsened by a one of 380 million rupees loss on the sale of vessel. (Colombo/Jan30/2020)