Tokyo Cement Co (Lanka) sees revenue up 4%

Tokyo Cement Co (Lanka) has reported a four per cent YoY increase in revenue to LKR11.88bn (US$58.96m) in the third quarter of 2021. However, net profit fell 94 per cent to LKR127m.

The quarter saw the company face a weakening rupee, foreign exchange shortage, which caused a delay in opening LCs, shortages and delays in raw material imports, soaring shipping costs and re-imposed lockdowns.

While the fuel price increase and a lack of vessels escalated inbound freight rates by over 300 per cent within a short period, the cost of clinker continued to increase in line with coal prices, as demand outstripped supply, said the company.

The cost of sales therefore advanced 32 per cent YoY to LKR9.83bn in the quarter, while distribution expenses surged to LKR1.44bn.