Tokyo Cement records Rs.16.3bn turnover amid construction boom

Tokyo Cement Group reported a turnover of Rs.16,322 million and a profit after tax (PAT) of Rs.1,003 million for the second quarter ending September 30, 2025, compared with Rs.13,833 million in turnover and a PAT of Rs.1,082 million in the same period last year. Whilst volume growth remained stable quarter-on-quarter, profit margins contracted with the capitalisation of the Trincomalee expansion projects, the company said in a commentary that followed the release of the financial performance.
The quarter began with renewed optimism in the construction sector, reflecting a sustained boom in activity. The manufacturers and suppliers of construction materials reported continued volume growth, supported by stable pricing, driving overall sector performance. September recorded the highest cement sales volumes since the 2022 economic crisis, aided by notably lower rainfall that allowed construction sites to operate relatively uninterrupted.
“Lower interest rates and improved macroeconomic stability spurred a significant expansion in private sector credit, driving increased investment activity across both construction and real estate sectors,” Tokyo Cement said. 
The developers of large-scale residential and mixed-use projects leveraged the low-interest environment with attractive financing schemes, stimulating end-user demand. The government-led infrastructure initiatives, including the Kadawatha-Mirigama section of the Central Expressway and several regional developments, further bolstered sector activity.
Economic fundamentals strengthened, with improved government revenue collection and an estimated 4.8 percent growth in the first half of 2025. Increased inflows from tourism and workers’ remittances helped stabilise the rupee against the dollar, leading to upgrades of the country’s sovereign rating by all three major rating agencies.
“Tokyo Cement maintains its conservative short- to medium-term outlook but remains confident in the country’s economic fundamentals,” the company said. 
“The group is well positioned to capture the anticipated growth in demand arising from renewed development activity with a robust production capacity. Continuing its disciplined cost management approach, Tokyo Cement Group remains committed to safeguarding stakeholder value and playing an active role in supporting the nation’s economic resurgence.”