Shree Cement (SCL) reported better than expected operating profit mainly on the back of significant decline in power & fuel and freight costs. Operating profit (adjusted for DMF provisioning of Rs344mn) grew by ~25% yoy and ~21% qoq to Rs4.2bn. Cement EBITDA/tonne came in at Rs798 as against Rs819/Rs654 reported in 1QFY15/4QFY15, respectively. SCL continued to exhibit cost leadership as cement operating cost/tonne declined by ~3% yoy mainly on softening of fuel costs. Adjusted PAT came above our estimate to Rs1.52bn owing to low tax expenditure and better operating performance....