JK Lakshmi Cement (JKLC) has reported a soft operational performance in 4QFY18 mainly on account of lower-than-expected sales volume and cost pressure. While EBITDA expanded by 42% YoY and 7% QoQ to Rs1.02bn (vs. our estimate of Rs1.16bn), EBITDA/tonne stood at Rs454 compared to Rs312 and Rs447 in 4QFY17 and 3QFY18, respectively. Operating cost per tonne surged by 11% YoY and 1% QoQ to Rs3,565 mainly led by sharp rise in freight cost/tonne (+16% YoY and +4% QoQ) and Power & Fuel cost/tonne (+8% YoY and -1% QoQ). Sales volume stood at 2.23mnT (-2.5% YoY and +6% QoQ). While Durg sales volume grew by 18% YoY to 0.63mnT, Northern volume de-grew during the quarter. Net profit stood at Rs334mn compared to Rs209mn...