Despite strong sales volume, Ramco Cements (RCL) has reported a lower-than-estimated operating performance in 4QFY17 primarily due to sharp surge in operating cost per tonne to Rs3,398 (+8.5% YoY and +1.1% QoQ). Its EBITDA declined by 23% YoY and 9% QoQ to Rs2.4bn vs. our estimate of Rs2.7bn. While Power & Fuel and Freight costs remained in comfortable zone, a substantial rise in other expenditures/tonne (+39% YoY and +28% QoQ) and RM cost/ tonne (+16% YoY and 4% QoQ) led to higher operating cost. Notably, an additional expenditure of Rs170mn towards A&P; and Rs58mn provisioning towards impairment of assets arising out of kiln up-gradation led to higher other expenditures. Cement EBITDA/tonne stood at Rs1,052 vs....