Tokyo Cement navigates competitive headwinds to post strong FY24/25 earnings

TOKYO Cement Group (Tokyo Cement) has reported a turnover of Rs. 12,960 million and a Profit After Tax (PAT) of Rs. 664 million for the fourth Quarter ending 31 March 2025, compared to a turnover of Rs. 13,145 million and a PAT of Rs. 722 million, in the same period last year.

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The diminished earnings can be attributed to price reductions as volumes grew by 13% in the quarter, Tokyo Cement said in a statement.

For the Financial Year ending 31 March 2025, the Group reported a turnover of Rs. 50,096 million compared to Rs. 49,824 million, and a PAT of Rs. 3,459 million against Rs. 2,422 million, respectively, over the previous year. Despite a 15% year-on-year increase in sales volume, turnover grew by only 1% due to widespread price reductions across the industry aimed at defending market share in a highly competitive environment. The 43% rise in PAT reflects the lower margin base of the prior year, further supported by strategic cost savings from optimised sourcing, currency appreciation, lower freight rates, and downward trending finance costs.

The Company said the economy in FY25 continued its positive trajectory this quarter, with key indicators pointing towards a more resilient recovery. Residential and commercial sectors drove an increase in demand for construction related credit facilities, encouraged by declining interest rates and material costs due to stable forex and freight rates.