Open ICICI
3-in-1 Account
Manage your Savings, Demat and Trading Account conveniently at one place
Manage your Savings, Demat and Trading Account conveniently at one place
News: JK Lakshmi cement reported revenue growth of 26% YoY to Rs1,551 crore that was mainly supported by higher realizations. However, EBITDA margin declined further 356bps YoY and 446bps QoQ to 14% due to increase in the power & fuel cost. PAT was down 15% YoY, 41% QoQ to Rs100.9 crore.
Views: While results were weak it was better than our estimates that was mainly driven by better than expected realizations that was up 20% YoY to Rs5,567/tonne (up 17% QoQ). This led to lower margin erosion than expected earlier. Now with the 10% correction in the petcoke prices, we expect the cost curve to peak out in the forthcoming quarter while better realizations should help the companies to recoup the lost margins.
Impact: Neutral.