Consolidated sales for the quarter came in at Rs 3,756 crore, up 3% QoQ. EBITDA for the quarter came in at Rs 297 crore with corresponding EBITDA margin at 7.9% (up 10 bps QoQ). PAT in Q2FY23 was at Rs 51.3 crores, up 38% QoQ. Standalone EBITDA margins were at 7.2% (down 10 bps QoQ with standalone gross margin decline pegged at ~100 bps QoQ)
Given the lag effect in realising raw material price decline benefits, the quarterly performance at the company came in satisfactory and was broadly on expected lines. We await management colour on gross margin expansion starting Q3FY23 and execution of brownfield expansion. The company, however, has a levered b/s, which amid rising interest rate scenario is likely to exert pressure on overall profitability
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