24 January 2020 UltraTech Cements (UTCEM) result instills confidence in its planned cost- rationalization and deleveraging roadmap. Operating cost per ton declined 3% YoY (-4% QoQ), driving a 38% YoY increase in EBITDA/t to INR1,008 (-2% QoQ). Strong FCF helped the company to reduce net debt sharply to INR186b (implying 1.9x net debt/EBITDA). We maintain our FY20/21 estimates and rating. Moreover, the companys clarification that it has not bid for Emami Cement should remove a key overhang on the stock. UTCEM remains our top pick in the sector. revenue declined 1% YoY to INR103.5b, while EBITDA/PAT grew 32%/75% YoY to INR21.1b/INR7.1b all broadly in line with our estimates. UTCEM incurred one-off expense of INR1.3b toward settlement of pending Consol. volumes declined 4% YoY, but EBITDA margin/ton increased 38% YoY (-2% QoQ) to INR1,008, with realization up 3.