Ambuja Cements (ACL) has reported a better-than-estimated operating performance in 4QCY17, mainly owing to higher-than-expected volume growth and better operational efficiencies. Operating profit grew by sharp 48% YoY and 39% QoQ to Rs4.4bn vs. our estimate of Rs3.9bn. Despite a sharp spike in Power & Fuel cost/tonne and freight cost/tonne, operating cost/tonne declined by 1% YoY and 6% QoQ to Rs3,681, led by cost optimisation initiatives. EBITDA/tonne stood at Rs746 vs. Rs586 and Rs628 in 4QCY16 and 3QCY17, respectively. EBITDA margin rose by 322 bps YoY to 16.8%. ACL's sales volume surged by 16% YoY and 17% QoQ to 5.9mnT led by better demand scenario in Eastern, Northern and Gujarat markets. Though we moderately...