Mangalam Cement (MCL) has reported better-than-expected operating performance in 4QFY16 mainly on account of a sharp decline in operating cost/tonne (-12% yoy and -14% qoq) to Rs2,838. Notably, usage of 100% petcoke, favourable input costs, improved utilizations from new unit and decline in employees cost (owing to capitalization of cost of employees transferred to Aligarh plant and bonus writeoff- approx up-to Rs10mn) led to decline in operating cost. MCL's sales volume remained tepid (-6% yoy at 0.64mnT) with its endeavour to sell more in Rajasthan market so as to take maximum benefit of sales tax exemption. Notably, the Company has received >Rs15mn as sales tax subsidy from government during 4Q....