Cement sector optimism lifts Tokyo Cement’s outlook despite seasonal slowdown

Tokyo Cement Group has kicked off the 2025/26 financial year on a cautiously optimistic note, projecting steady demand for cement supported by improving macroeconomic conditions and continued private sector investment.

For the first quarter ended 30 June 2025, the group posted a turnover of Rs. 12,544 million, up from Rs. 11,665 million a year earlier. Profit after tax (PAT) was Rs. 668 million, slightly lower than Rs. 707 million in the same period last year. 

The growth in revenue was driven by higher sales volumes and momentum from ongoing construction projects, although seasonal slowdowns and monsoon-related disruptions affected overall demand.

Lower interest rates and improved access to credit have continued to stimulate real estate and commercial construction activity. Yet,  Tokyo Cement noted that delays in public infrastructure investments remain a hurdle for the sector’s full recovery. Key projects such as the BIA Phase II and the Kadawatha–Mirigama section of the Central Expressway are expected to be critical drivers of future demand.

“While we maintain a conservative short to medium-term outlook, we are confident in the underlying economic fundamentals and prepared to capitalise on industry growth opportunities,” the group said, noting that its production capacity of 4 million metric tonnes remains underutilised.

The company emphasised continued strict cost control measures to safeguard stakeholder interests, with optimism that improving foreign Forex inflows, subdued inflation, and growing investor confidence will support sustained industry growth.