Ramco Cements (RCL) has delivered an improved performance in 4QFY18, with its operating profit growing by 12% YoY and 18% QoQ to Rs2.68bn (vs. our estimate of Rs2.25bn) led by higher-than-estimated sales volume. EBITDA/tonne came in at Rs980 vs. Rs1,052 and Rs996 in 4QFY17 and 3QFY18, respectively, while average realisation/tonne stood at Rs4,571 (+2.7% YoY and -0.8% QoQ). Sales volume improved substantially by 20% YoY and 21% QoQ to 2.74mnT mainly on account of higher contribution from the Eastern markets and gradual revival in Tamil Nadu. Considering visible revival in TN markets and sustained demand environment in other key markets, we believe RCL may continue to deliver higher sales in subsequent years. However,...