Led by cost optimization measures and improved utilisation, Kajaria Ceramics (KJC) has reported a decent operating performance in 2QFY19, beating our estimates albeit marginally. Reported EBITDA stood at Rs1.08bn (-11% YoY and +13% QoQ) vs. our estimate of Rs1.02bn, while EBITDA margin came in at 15% (-316bps YoY and +28bps QoQ). Average realisation improved by 1.3% QoQ to Rs349/sm, broadly in-line with our estimate. Operating cost/sm stood at Rs315/sm (+1.6% YoY and +0.9% QoQ). Revenue grew by 8% YoY and 10% QoQ to Rs7.25bn mainly led by 10.5% YoY growth in volume to 19.54msm. Whilst the Management expected JVs business to revive in current fiscal, persistent loss from the JVs does not bode well for KJC, in our view. Strong...