JK Cement’s Q2FY23 revenues were up 16.7% YoY to Rs 2141.8 crore led by 9.4% growth in volumes and 6.6% increase in realisations. EBITDA margins declined 407 bps YoY to 13.9% on higher costs. Net profit was down 26% YoY to Rs 124.9 crore
While the Q2 performance was weak, the same was better than our estimates as the company managed to improve its sales volume QoQ despite monsoons. Further, cost increase was restricted to only 2% QoQ leading to better-than-expected margins and profitability for the quarter. The company has also announced capex of Rs 1161 crore that will add another 5.5 MT, which works out to capex of only $26/tonne. This should help boost its return ratios, going forward
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