JK Lakshmi Cement (JKLC) has reported a better-than-expected operating performance in 3QFY17. JKLC's EBITDA grew by 22% YoY to Rs0.83bn vis--vis our estimate of Rs0.63bn primarily attributable to better-than-estimated sales volume, which stood at 1.83mnT (+4% YoY and +6.5% QoQ). Operating cost/tonne declined by ~2.5% YoY and ~1.7% QoQ mainly on account of significant reduction in raw material cost/tonne and other expenditure/tonne. However, power and fuel cost/tonne surged by 2% QoQ due to increase in petcoke prices. Further, freight cost/tonne also increased by 1.8% YoY and 1.6% QoQ. Average net realization declined by 0.4% YoY...