Operating performance of Sagar Cements (SCL) topped our estimates, with consolidated EBITDA rising by 8% qoq to Rs287mn. A better than expected realizations seen in its key markets viz;- South with contracting contribution of sales from outside Southern markets (21% v/s 25% in 2Q17) led to improvement in consolidated operating performance, which also defied volume de-growth of 8% qoq at 0.47mnT. Operating cost/tonne surged by ~8% qoq owing to substantial rise in freight (+10% qoq) and other expenditures (+12% qoq) on per tonne basis. EBITDA/tonne came in at Rs609 in 3QFY17 from Rs520 in 2QFY17. Higher interest and depreciation costs led to net loss of Rs5.3mn during the quarter. SCL...