Reported operating performance of Ambuja Cements (ACL) has slipped our estimate albeit marginally 1QCY18 led by higher-than-expected operational cost. EBITDA stood at Rs4.1bn (+12% YoY and -7% QoQ) vs. our estimate of Rs4.3bn. Operating cost/tonne surged by 5% YoY and 2% QoQ to Rs3,783 mainly led by spike in input cost (due to higher fly-ash and gypsum prices), higher freight cost (led by increase in lead distance, FOR sales and diesel prices) and power & fuel cost (owing to higher petcoke prices). EBITDA/tonne stood at Rs655 vs. Rs606 and Rs750 in 1QCY17 and 4QCY17, respectively. EBITDA margin rose by 34bps YoY (-210bps QoQ) to 14.7%. Notably, average cement realisation came in marginally above our estimates...