Mangalam Cement (MCL) has reported a strong operating performance in 1QFY18 amid cost pressures, as operating profit came in at Rs405mn (-16% YoY and +64% QoQ), which is higher than our estimate of Rs311mn. Better-than-expected improvement in realisations (+9% YoY and +11% QoQ) was the sole reason for robust operating performance. However, operating cost/ tonne rose by ~17% YoY and 3% QoQ to Rs3,417 mainly owing to significant jump in Power & Fuel cost (due to high petcoke price) and freight costs (led by loading restrictions). EBITDA/tonne stood at Rs648 in 1QFY18 vs. Rs795 and Rs357 in 1QFY17 and 4QFY17, respectively. MCL's sales volume grew by 3.3% YoY to 0.63mnT mainly supported by increased volume from Aligarh...