Dalmia Bharat's Q3FY17 revenue of Rs 17.4 bn (+17% YoY) came better than estimate of Rs 16.2 bn, led by better than expected cement volumes (led by better demand in South India & increase in sale of premium product). EBITDA/ton of Rs 1183/t (flat YoY) was broadly in-line with our estimate as the better cost control was offset by weakness in pricing. EBITDA increased 19% YoY to Rs 4.2 bn (15% higher than estimate). Consolidated PAT increased significantly by 19% YoY to Rs 357 mn led by better operating performance. Going ahead, operational performance is expected to improve further led by strong volume growth and improvement in margins. We estimate EBITDA CAGR of 16% and PAT CAGR of 63% during FY16E-19E.