J K Cements Ltd's Q2FY19 standalone net profit declines 30.5% yoy to Rs64.7cr : Beats Estimates

The company’s standalone revenue stood at Rs1,100.6cr, flat on yoy basis and down 1.3% qoq.

Nov 03, 2018 05:11 IST India Infoline Research Team

J K Cements Ltd Q2FY19

Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 1,100.6 [0.6]
EBITDA 169.8 [18.1]
EBITDA Margin (%) 15.4 [328]
Net Profit  64.7 [30.5]
***EBITDA margin change is bps
JK Cements reported a weak set of numbers for the quarter, however, the performance was ahead of estimates on profitability fronts. Revenue for the quarter was flat on yoy basis to Rs1,100.6cr, in-line with estimates. On account of rise in cost items, especially power, employee and other expenses, the EBITDA declined by 18.1% yoy to Rs169.8cr (~25% higher than the estimates). EBITDA margin contracted by 328bps yoy to 15.4% (estimate 12.3%). EBITDA decline and lower other income led to PAT decline of 30.5% yoy to Rs64.7cr, against estimate of ~41cr.
  • Raw material and freight costs were down by 301bps and 108bps yoy respectively as percent of net sales.
  • On the other hand, employee, power and other expenses were up by 113bps, 331bps and 293bps yoy respectively as per cent of net sales.
  • Interest cost during the quarter was down by 8% yoy to Rs58.3cr.
  • Other income declined by 47.7% yoy leading to a sharper fall in the PAT.

Technical View:

J K Cements Ltd ended at Rs. 700.50, up by 22.1 points or 3.26% from its previous closing of Rs. 678.40 on the BSE.
The scrip opened at Rs. 682 and touched a high and low of Rs. 715 and Rs. 682 respectively. A total of 70,030 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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