Bleak Quarter Marred by Higher Input Cost; Maintain BUY Srikalahasthi Pipes (SPL) has delivered a subdued performance in 4QFY17 with its EBITDA declining by 16.1% YoY and 13.8% QoQ to Rs556mn (vs. our estimate Rs 722mn), while EBITDA margins contracted by 902bps YoY and 1,133bps QoQ to 12.9% vs. our estimate of 21.6%. Sharp decline in EBITDA is attributable to a steep increase in the prices of key raw material i.e. coking coal, which averaged at US$220/tonne in 4QFY17 compared to US$170/tonne and US$105/ tonne in 3QFY17 and 2QFY17, respectively. Notably, SPL could not pass on the higher cost of coking coal to the customers, as the prices increased in every month of the quarter. However,...