Sagar Cements (SGC) has reported disappointing performance in 2QFY19,with higher-thanexpected decline in average NSR and higher power and fuel cost dragging its operational performance. Consolidated EBITDA declined by 45% YoY and 42% QoQ to Rs211mn vs. our estimate of Rs404mn and street estimate of ~Rs392mn. EBITDA/tonne stood at mere Rs294 compared to Rs642 and Rs492 in 2QFY18 and 1QFY19, respectively. Sales volume stood at 0.72mnT (+19.8% YoY and -3.3% QoQ). Prolonged shutdown of BMM unit (for 52 days) along with shutdown of 25 CPP led to higher operating cost in terms of higher power and freight cost (despite benefit from Bayyavaram unit) and other fixed cost. A sharp decline in operating profit and 29% YoY (+26% QoQ) surge in depreciation led to PBT loss of Rs106mn. We believe...