Filtered Press Release : 2023 Nov
Tokyo Cement Invites Nature-lovers to Forest-Bathe in The Horton Plains
Sri Lanka’s Horton Plains National Park with sweeping grasslands and montane evergreen cloud forests is an outstanding natural wonder. The remarkable biodiversity of this UNESCO World Heritage Site is reaffirmed by the astounding number of flora and fauna there that are not seen anywhere else on the planet. Mr. S. R. Gnanam, Managing Director of …
Sri Lanka’s Horton Plains National Park with sweeping grasslands and montane evergreen cloud forests is an outstanding natural wonder. The remarkable biodiversity of this UNESCO World Heritage Site is reaffirmed by the astounding number of flora and fauna there that are not seen anywhere else on the planet.
Mr. S. R. Gnanam, Managing Director of the Tokyo Cement Group, whilst bestowing a new Ranger Office at the Dayagama Walking Trail of the HPNP to the Department of Wildlife Conservation (DWC) commented, “This marks the beginning of a ‘Culture of Forest Bathing’ in our country, made famous by the Japanese who revive their lives bathing in the healing tranquility among trees and nature. I have personally experienced this walking trail to be the most picturesque route to the Horton Plains, providing an incomparable forest-bathing experience as you walk through the dense tropical montane forest.”
Whilst thanking the DWC for assuring exclusivity of the trail for trekkers and cyclists, he added that Tokyo Cement Group partnered this initiative because the Group understood the importance of scientific conservation of unique nature reserves such as The Horton Plains National Park (HPNP). It is the only nature reserve where visitors are allowed on foot, across the rolling plains and tropical hills. Whilst many visitors take the motorable routes from Pattipola or Ohiya, the 5 km long Dayagama East Walking Trail is taken essentially by discerning nature lovers. This trekking path, a section of the world-famous Pekoe Trail, is an undisputed favourite among ardent birding enthusiasts, guaranteeing encounters with an array of migratory and resident bird species, many of them endemic to Horton Plains.
Tokyo Cement Group bestows the Horton Plains – Dayagama Walking Trail to true nature-lovers
Being less popular, the Dayagama East entrance was largely unmonitored, thus making it a vulnerable entry and exit route. The DWC sought ways to streamline visitor activity on this route, whilst contending with limited resources for many years. The DWC invited Tokyo Cement Group, known for its extensive environmental conservation initiatives and a deep attachment with the Horton Plains, to establish a DWC Ranger Office at the entrance of the Dayagama East Walking Trail.
Chairman of the Tokyo Cement Group Dr. Harsha Cabral PC and Managing Director, Mr. S. R. Gnanam handed over the newly built office complex to the Minister of Wildlife and Forest Resources Conservation, Hon. (Mrs.) Pavithra Wanniarachchi and the Director General of DWC, Mr. Chandana Sooriyabandara.
Dr. Harsha Cabral PC, Chairman of the Tokyo Cement Group, commending the efforts of Hon. Minister Wanniarachchi said, “This Dayagama visitor entrance, dedicated to those who come here purely to enjoy the scenic peak wilderness, extends Tokyo Cement Group’s commitment to environmental sustainability. Prohibiting the entry of all forms of motor vehicles and unauthorized trespassers will ensure the protection of this unique flora and fauna not just today, but for our future generations.”
(standing from left) Dr. Harsha Cabral PC, Chairman of Tokyo Cement Group, Mr. Kanchana Jayaratne, Hon. (Mrs.) Pavithra Wanniarachchi, Minister of Wildlife and Forest Resources Conservation, and Mr. S. R. Gnanam Managing Director of Tokyo Cement Group inspect the newly opened Dayagama Walking Trail to the Horton Plains National Park.
In addition to the new DWC office, Tokyo Cement Group established educational signage boards at key points of the walking trail and main road, revealing the unique flora and fauna spotted at the HPNP. These informative boards designed by the Parrotfish Collective, create awareness on the park’s rich biodiversity and educate visitors about the importance of its conservation. Tokyo Cement Group intends this far-reaching nature conservation project will enrich the immersive experience of visitors to the Horton Plains National Park. –
Photo:
Mr. S. R. Gnanam Managing Director of Tokyo Cement Group, Hon. Minister of Wildlife and Forest Resources Conservation Pavithra Wanniarachchi, and Dr. Harsha Cabral PC, Chairman of Tokyo Cement Group inaugurate the Dayagama DWC Ranger Office at the Horton Plains National Park.
Tokyo Cement Group Q2 Results Indicate Steady Growth in Demand
Quarterly Financial Review For the 2nd quarter ending 30th September 2023, Tokyo Cement Group (Tokyo Cement) reported a turnover of Rs. 13,311 million, and a profit after tax of Rs. 642 million. This is a 5% decline in turnover and an 80% decline in profits after tax against the same period of the previous year. …
Quarterly Financial Review
For the 2nd quarter ending 30th September 2023, Tokyo Cement Group (Tokyo Cement) reported a turnover of Rs. 13,311 million, and a profit after tax of Rs. 642 million. This is a 5% decline in turnover and an 80% decline in profits after tax against the same period of the previous year. A significant portion of this profit decline can be attributed to the uniquely high baseline of Q2 FY22/23, during which a 50kg Cement Bag had an MRP of Rs. 3,200/-. This price was reflective of the economic environment which had rising interest rates, inflating global raw material prices, unpredictable increases in transportation and energy costs, volatility of foreign exchange, and mitigating against exchange losses. However, in the quarter under review the price of a 50kg bag of cement was reduced by 28% to Rs. 2,300/-, reflecting a relative stabilisation of the local economic environment.
The comparatively smaller reduction in turnover vis-a-vis the considerable drop in price indicates a significant and encouraging growth in sales volumes year-on-year. The reduced profitability can be attributed to the reduction in prices that have been adjusted downwards periodically by the volition of cement manufacturers, for the benefit of the consumers. The profitability was further impacted by the addition of a CESS on the importation of clinker, increases in Administrative Expenses due to the imposition of the Social Security Contribution Levy (SSCL), and the raising of corporate tax from 18% to 30%.
The Economic Environment
The Group has observed a considerable increase in demand with the restart of construction activities. The Government’s decision to settle outstanding payments through treasury bonds to contractors eased payments to suppliers, allowing the resumption of projects previously halted due to cashflow issues. Furthermore, the Government announced the relaxation of the majority of import restrictions, that will allow accessibility to industrial, and construction related goods that were previously unavailable.
The year-on-year headline inflation, as measured by the Colombo Consumer Price Index (CCPI) decreased from 6.3% in July to 1.3% in September 2023. Consequently, the Central Bank reduced the Standing Deposit Facility Rate and the Standing Lending Facility Rate by 100 basis points (bps) to 10.00 per cent and 11.00 per cent respectively, in October 2023. Interest rates (Average Weighted Prime Lending Rate (Weekly)) steadily declined from 19.47% end June, to as low as 14.67% by end-September.
The Rupee stabilized significantly in comparison to Q2 FY22/23 during which period the currency depreciated to around Rs. 369-370/- to the USD, whereas in Q2 FY23/24 the Rupee appreciated to a lowest of Rs. 312-325/- to the USD. This downward yet stable movement of foreign exchange rates conveyed a much-needed stability for businesses to import goods and set prices. Additionally, a decrease in global raw material costs and freight rates allowed a reduction in prices across a wide range of commodities, including cement, from the beginning of Q2 FY23/24.
The biggest impact on financial performance across all sectors came with several tax increases. In addition to the imposition of the SSCL, and the increase in corporate taxes, a CESS was imposed on the importation of raw materials. For consumers, disposable income was further restricted with the increment of direct income taxes and significant increases in utility prices such as gas, fuel, water and electricity.
Outlook
In the short to medium term, the stabilisation of the currency, lowering inflation, and downward-trending interest rates should allow for commercial and private sector development projects to resume in the coming year. However, domestic consumption is expected to recover only in the medium to long term, due to reduced purchasing power, a weakened currency, and increases in utilities and taxes. The Government sustaining IMF-prescribed economic and fiscal policies will potentially allow it to qualify for access to foreign funding of infrastructure in the form of grants and loans. The Group is currently observing some resumption of both private sector and institutional construction projects.
However, the escalation of tensions in the Middle East and continued conflict in Eastern Europe will pose a significant impact on fuel prices, supply chains and freight costs across the globe, which would have an impact on the cost of imports. Tokyo Cement has been vigilantly observing trends and actively forecasting costs to adapt to shifting conditions of the global economic environment. Whilst acknowledging the road to recovery is long and tenuous, the Tokyo Cement Group is confident of the fundamentals of its business operations and is cautiously optimistic of a steady revitalisation of the construction industry.
