5 June 2018 PRSMJs focus markets in Central India are likely to witness healthy utilization uptick, driven by demand improvement. This coupled with increased premium sales for PRSMJ should drive margin expansion over FY18-20, resulting in segment EBITDA CAGR of 21%. Post FY20, the cement business should continue to see margin expansion, led by commissioning of WHRS (reduce power cost) and split grinding unit with a capacity of 1-1.5mt in UP, lowering freight cost. We expect healthy growth in volumes led by effective marketing initiatives and product innovation. We expect healthy improvement in consolidated margins in FY20 (from 3.8% in FY18), led by improvement in standalone utilization levels. Working capital reduction coupled with margin improvement should drive up RoCE for the segment. EBIT margin for the business was ~3% in 4QFY18 after EBIT loss in 1HFY18, led by housing and the governments push to infra activities.