- 02 Nov 2023
- ICICI Securities
COMPANY REPORTS ROBUST PERFORMANCE IN Q2FY24
JKTYRE - 351 Change: 11.55 (3.40 %)News: Consolidated sales for the quarter came at ₹ 3,898 crore, up 4% YoY. EBITDA for the quarter came in at ₹ 589 crore with corresponding EBITDA margin at 15.1% (up 280 bps QoQ). PAT in Q2FY24 was at ₹ 242 crores, up 372% YoY. Standalone EBITDA margins stood at 14.5% (up 230 bps QoQ with standalone gross margin expansion pegged at ~285 bps QoQ). Company posted healthy CFO in H1FY24 at ₹ 1065 crore with consequent FCF and reduction in gross debt pegged at ~₹700 crore and ~₹450 crore respectively.
Views: Company’s gross margin performance came in robust and was ahead of our expectations. Sensing the market demand the company has also announced a fresh capex amounting to ~₹1,025 crore to be commissioned by October 2025. We expect stock to open gap up in opening trade today. Management commentary on sustenance of these superlative margins and debt trajectory will be the key monitorable going forward.
Impact: Positive