JK Lakshmi Cement reported revenue growth of 16.5% YoY to Rs 1302.7 crore, mainly supported by higher realisations. However, EBITDA margin declined further 390 bps YoY and 335 bps QoQ to 10.6% due to increase in power & fuel cost. PAT was down 23% YoY, 41.6% QoQ to Rs 59 crore
While results were weak, it was better than our estimates, mainly driven by better-than-expected realisations that were up ~17% YoY to Rs5,651/tonne (up 1.5% QoQ). This led to lower margin erosion than expected earlier. Now with the correction in the petcoke/international coal prices, we expect the cost curve to move downwards in the forthcoming quarter while better realisations should help companies to recoup lost margins
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