Shree Cement's Q2FY19 results were better than expectation with sales/EBITDA beat of 4.4%/7.2%. Sales grew 20.7% YoY to Rs25,866 mn driven by better than expected dispatches at 5.6 mn tonnes (+15.6% YoY). However, EBITDA/tonne fell 19.8% YoY to Rs922 mainly on higher energy costs and other expenditure. The company reported an exceptional loss of Rs1,781 mn related to investments in preference shares of IL&FS; after credit rating agencies downgraded IL&FS; Group to junk status. Excluding the reported exceptional loss, adjusted net profit increased 7.5% YoY to Rs2,275 mn. We largely maintain our FY19/20 estimates. We expect Shree Cement's EBITDA/ net...