Healthy Operational Performance Persists Despite Cost Pressure Shree Cement (SCL) has reported better-than-estimated operational performance in 2QFY18, as its EBITDA stood at Rs5.6bn (-15% YoY and -18% QoQ) vs. our estimate of Rs5.3bn. Higherthan-expected realisation and lower-than-expected other expenditures are the prime reasons for this outperformance. Operating cost/tonne for cement stood at Rs3,037 (+14% YoY and +2% QoQ). A significant spike in power & fuel cost/tonne (+8% YoY and +9% QoQ) and freight cost/tonne (+23% YoY and +2% QoQ) led to higher operational cost. Surge in fuel prices and complete restriction on overloading in its key markets resulted in higher power & fuel and freight cost. Cement EBITDA/tonne came in at Rs1,133 vs. Rs1,300 and Rs1,157 in 2QFY17 and 1QFY18,...