J.K. Cement (JKC) continued to report a healthy and better-than-estimated operating performance in 1QFY18. Its EBITDA grew by 19% YoY and 9% QoQ to Rs1.98bn exceeding our estimate of Rs1.77bn owing to a better-than-estimated recovery in average realisation of grey cement. Notably, a sharp realisation up-tick in Western markets during 1QFY18 aided its average realisation. Operating cost/tonne increased by 4% YoY and 2% QoQ led by sharp up-tick in power & fuel cost/tonne (+15% YoY and +2% QoQ) and freight cost/tonne (+13% YoY and +11% QoQ). Grey cement EBITDA surged by ~28% YoY and 3% QoQ to Rs1.28bn, while White cement (including Wall Putty) EBITDA grew by ~6% YoY and 22% QoQ to Rs694mn (35% of blended...