JK Paper Ltd's Q2FY19 standalone net profit rises 93.5% yoy to Rs110cr

The company’s standalone revenue stood at Rs785.04cr, up 17% yoy but down 1.3% qoq.

Nov 12, 2018 12:11 IST India Infoline Research Team

JK Paper Ltd Q2FY19

Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 785.04 17.0
EBITDA 204.79 47.5
EBITDA Margin (%) 26.1 539
Net Profit (adjusted) 109.57 93.5
***EBITDA margin change is bps
JK Paper reported an excellent set of numbers for Q2FY19. The revenue for the quarter grew 17% yoy and declined by 1.3% qoq to Rs785cr. EBITDA came in at Rs205cr, up 47.5% yoy and 2.7% qoq. EBITDA margins expanded 539bps yoy and 101bps qoq to 26.1%. Reported PAT grew 93.5% yoy and 15.2% qoq to Rs110cr.
  • The top-line growth is likely to have been driven by broad based volume growth and higher realisations. The increase in realisation in copier paper segment is expected to be ~5%.
  • Dollar appreciation would have marginally aided blended realisation on yoy basis.
  • Gross margins improved by 233bps yoy and 155bps qoq, wich we believe is aided by better product mix.
  • Power & fuel cost as percentage of sales declined by 118bps yoy while other expenses declined by 159bps yoy.
  • Finance cost declined from Rs33cr in Q2FY18 to Rs28cr in the current quarter and other income increased by 63.6% yoy to Rs10cr, aiding overall profitability.

Technical View:

JK Paper Ltd is currently trading at Rs. 180.70, down by 4.7 points or 2.54% from its previous closing of Rs. 185.40 on the BSE.
The scrip opened at Rs. 185.50 and has touched a high and low of Rs. 186.65 and Rs. 179.35 respectively. So far 19,35,885 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 50 DMA.

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