JK Paper - Margins improve driven by increase in realizations - Emkay

- JK Paper reported Q1FY13 results broadly in line with est. Revenues increased 7% yoy driven by 4% increase in sales volumes to 69,700mt while realizations increased 3% yoy

- Company reported EBITDA at Rs 427mn, -30% yoy. EBITDA margins improved 270bps qoq to 12.4%, driven by increase in realizations& lower trading. PAT stood at Rs141mn, -49% yoy

- Company's expansion plans remain on track. Post the expansion, JK Paper's installed paper capacity will increase by 165,000mt while pulp capacity will increase by 215,000mt

- Expect margins to improve gradually by the end of FY13 driven by increase in realizations. Maintain Accumulate with target price of Rs48.

Source : Equity Bulls

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