India Cements (ICL) has reported a subdued set of numbers for 4QFY18. Its reported EBITDA declined by ~17% YoY and ~5% QoQ to Rs1.6bn (vs. our estimate of Rs1.7bn) owing to higher-thanestimated rise (+5.5% QoQ) in cement operating cost/tonne to Rs3,920 led by higher employee cost, Freight and Power & Fuel cost. Cement EBITDA/tonne came in at Rs499 as against Rs712 and Rs628 in 4QFY17 and 3QFY18, respectively. However, net profit stood at Rs353mn (vs. our estimate of Rs200mn) led by lower tax and interest cost. Whilst receivables declined to Rs6.3bn (vs. Rs7.9bn in 1HFY18), which aided ICL to sequentially reduce its gross debt by Rs2.3bn, on YoY basis its debt rose by Rs2bn to Rs31.3bn again reaching the peak witnessed in FY15. We believe that ICL's inability to pare down debt amid no capacity expansion may not warrant any...