Shree Cement (SRCM) has reported a healthy operating performance in 2QFY19 mainly on account of healthy realisation, stronger volume and improved performance of power division. Its EBITDA adjusted for Rs840mn MTM loss and Rs304mn freight rebate stood at Rs5.73bn exceeding our estimate of Rs4.83bn. Cement EBITDA/tonne came at Rs946 vs. Rs1,133 and Rs863 in 2QFY18 and 1QFY19, respectively. Cement operating cost/tonne stood at Rs3,268 vs. Rs3,037 and Rs3,244 in 2QFY18 and 1QFY19, respectively mainly due to higher fuel prices. Sales volume including clinker of 0.21mnT stood at 5.64mnT (+16% YoY and -19% QoQ). Average realisation grew unexpectedly by 3.9% QoQ to Rs4,268/tonne. SRCM has also provided Rs1.78bn total...