India Cements (ICL) has delivered healthy performance in 2QFY17 with its operating profit standing at Rs2.24bn (-2% yoy & +11% qoq) vs. our estimates of Rs2.07bn. Cement EBITDA/tonne came in at Rs892 and EBITDA margins stood strongly at 17.2%. A substantial sequential rise in Power & Fuel cost/tonne (+8% qoq) and freight/tonne (+6% qoq) led to 6% qoq rise in cement operating cost/tonne. However, improved operating synergies through improvement in fuel mix kept yearly cost under control. Sales volume including exports improved strongly (+11% yoy & +2% qoq) to 2.40mnT owing to increased sales volume in outside Southern markets. While...