Cost inflations hurt margin despite strong volume growth During Q2FY19, UltraTech's (UTCEM) total volume rose 19% YoY thus boosting standalone net sales by 21% YoY. However, EBITDA and PAT fell 4% and 9% YoY respectively, driven by elevated cost inflation amid muted price increase. Management expects inflationary pressure to sustain during H2FY19. However, expected cement price improvement during H2FY19 (amid sustained good demand and rising utilisation), should aid UTCEM's margin recovery. We reiterate BUY on UTCEM with a revised TP of Rs4,450. Revenue driven by strong demand from infrastructure segment: Q2FY19 grey sales...