28 July 2020 UltraTech Cement (UTCEM)s result highlights the execution of its planned cost rationalization and de-leveraging roadmap. Despite negative operating leverage (volumes down 32% YoY), the company reported the highest ever EBITDA/t of INR1,416, led by cost reduction across heads of expenditure. Net debt also declined by INR22b (13%) QoQ to INR147b (1.7x EBITDA). We raise our consolidated PAT estimate by 23%/11% for FY21/FY22 after factoring lower operating costs as well as lower finance cost (on account of faster de-leveraging). Besides strong FCF, non-core asset sales should further aid de-leveraging. Reiterate FCF generation stood at INR22.0b, achieved through a working capital release of INR7.9b. However, management does not foresee further reduction in working capital in FY21. Cement prices have declined 45% MoM in July due to seasonal weakness. Century assets recorded EBITDA/t of >INR900/t, with cost reduction of INR105/t QoQ and utilization at >70% in May and June.