### Tokyo Cement 3Q Results: Volume Growth Signals Industry Upswing 📈

Tokyo Cement Group reported a resilient 3Q ending December 31, 2025, balancing significant volume growth against temporary profitability pressures. • Overall Financials (3Q 2025) Turnover: Rs. 14,523 Mn (up 25% YoY from Rs. 11,639 Mn) Profit After Tax (PAT): Rs. 332 Mn (down from Rs. 1,006 Mn YoY) Profit impact attributed to reduced selling prices, higher raw material costs, currency depreciation, and capitalisation of Trincomalee expansion projects. • Market Dynamics & Drivers Demand was driven by the hospitality, housing, and condominium sectors. Construction activity peaked in Sept/Oct 2025, supported by stable pricing and regional infrastructure. Cyclone Ditwah caused a temporary slowdown in late Q3, with total national damage estimated at US$ 4.1 Bn. • National Economic Context Export earnings (Jan-Sept) reached US$ 12.99 Bn (+7% YoY). Workers’ remittances surged 20.7% YoY to US$ 7.19 Bn (Jan-Nov). The Rupee depreciated by ~6%, yet macroeconomic stability remains via twin surpluses in primary fiscal and current accounts. • Future Outlook & Infrastructure Positive 4Q forecast linked to post-cyclone reconstruction and a Rs. 1.38 Tn capital expenditure budget for 2026. Key projects: Central Expressway (Kadawatha-Meerigama), BIA Airport Phase II, and Kandy Multimodal Transport Terminal. A Rs. 500 Bn supplementary allocation for rebuilding is expected to further stimulate cement demand.