Srikalahasthi Pipes (SPL) has delivered a subdued performance in 2QFY18. While the numbers look encouraging on YoY basis, but the same is not comparable as SPL undertook a planned maintenance shutdown of its mini blast furnace in 2QFY17 for about 30days. Hence, while its revenue surged by 95% YoY, it fell by 21.4% QoQ to Rs3.4bn (vs. our estimate Rs4.59bn). EBITDA increased by 86% YoY (+2.5% QoQ) to Rs659mn vs. our estimate Rs767mn. Though EBITDA margin contracted by 91bps YoY, it surged by 452bps QoQ to 19.4% (vs. our estimate of 16.7%) owing to softening of coking coal prices during the quarter. Notably, EBITDA sharply declined in 1QFY18 due to a steep rise in prices of key raw material i.e. coking coal, which rose to...