22 October 2018 EBITDA was down 14% QoQ to INR23.3b (in-line) in 2QFY19, led by an 18% decline in zinc LME and lower zinc volumes, partially offset by 5% depreciation in the INR and higher byproduct revenue. Tax rate was lower by ~600bp QoQ to 20.2%. PAT declined at a slower rate of 5% QoQ to INR18.1b. Mine production increased 10% QoQ, but refined metal production declined 1% QoQ due to lower availability of concentrate in early part of the quarter. Cost of production (CoP) remains high. It increased by 4% QoQ in INR terms and declined 1% in USD terms to USD1,034/t (excluding royalties). CoP is likely to decline in 2H on account of operating leverage and the start of vertical shafts. Mine production is expected to be 17% higher in 2H v/s 1H. Most projects (vertical shafts at RA+SKM, mills at SKM+Zawar and fumers) which should increase capacity to 1.