Mangalam Cement (MGC) slipped into operating losses in 1QFY16, primarily due to very weak pricing (Rs 3,303/t, -21.5% YoY, -8.8% QoQ) in its core markets. Expanded capacity continues to drive volumes (0.64 mT, 18.0% YoY, -1.4% QoQ). 1QFY16 is also a representative quarter for operating costs, as we do not expect significant improvements to the cost numbers due to reasons specific to MGC.