Operating performance of Sagar Cements (SCL) marginally topped our estimates, with consolidated EBITDA rising by 3% qoq to Rs266mn vs. our estimate of Rs251mn. Higher sales from rich realizations pockets outside AP/Telangana, which contributed 63% to total sales with utilizations uptick from BMM (70% vs. 62% in 1QFY17) led to improvement in consolidated operating performance defying volume de-growth of 11% qoq at 0.51mnT. Operating cost/tonne surged by ~6% qoq owing to substantial rise (+23% qoq) in power and fuel cost/tonne (led by rise in imported coal prices) and 31% jump in freight cost/tonne triggered by increased lead distance and higher diesel price....