India Cements (ICEM) operating performance for 2QFY2016 has come in better than our and street estimates. ICEM reported an EBITDA growth of 27.6% yoy to Rs228.6cr, which is above our estimate of Rs193.9cr. The EBITDA margin improved by 536bp and came in at 21.2%, which is above our estimate of 17.7%. Consequently the net profit jumped to Rs41cr as against Rs7.5cr during the same quarter last year. The net profit was higher on account of better than expected EBITDA numbers and lower depreciation and interest expenses. The top-line is marginally below our estimate, mainly due to weak cement demand and subdued realization. The realization/tonne fell 2.4% qoq (improved by 5.8% yoy) to `4,925 and was below our estimate of Rs4,995. EBITDA margin jumps 536bp yoy: ICEMs top-line fell by 4.6% yoy, impacted by low demand in its key markets of South India. The companys cement sale volume was down by 8.1% yoy to 2.16mn tonne (mt) and was in line with our estimate of 2.15mt. Cement realization fell 2.4% qoq to Rs4,925/tonne and was below our estimate of Rs4,995/tonne. However, the OPM improved by 536bp on a yoy basis to 21.2%, aided by a decline in operational costs. The company...