Better Operating Performance on Lower Freight Cost JK Lakshmi Cement (JKLC) has reported a better-than-expected performance in 2QFY19 with its EBITDA coming in at Rs916mn (-4% YoY and -2% QoQ) vs. our estimate of Rs824mn led by unexpected decline in freight cost (-1% YoY and -18% QoQ) owing to ~30kms reduction in lead distance. EBITDA/tonne stood at Rs431 vs. Rs505 and Rs410 in 2QFY18 and 1QFY19, respectively. While operating cost/tonne stood at Rs3,572 (-0.9% YoY and -1.7% QoQ), input cost/tonne increased by 7% YoY and 2% QoQ to Rs1,944 mainly due to increase in Power & Fuel cost. Average NSR declined by 2.6% YoY and 0.9% QoQ at Rs4003/tonne, while sales volume grew...