21 July 2020 Revenue declined 9% QoQ (-20% YoY) to INR39.9b (v/s est. INR37.8b), primarily due to decline in volumes (208kt, -6% QoQ), Zinc LME (-8% QoQ) and premiums offset by currency depreciation (5%). Hindustan Zincs (HZ) 1QFY21 results reflect impact of the COVID-19 led shutdown, lower LME and adverse sales mix (higher exports). EBITDA was down 14% QoQ to INR15.8b (6% higher than est.), aided by lower costs. However, PAT inched up 1% QoQ to INR13.6b on higher other income (v/s est. We expect HZs EBITDA at 11% CAGR over FY20-22E despite lower LME, primarily on ~10% volume CAGR to 1,034kt. Maintain Derived Zinc realizations declined 11% QoQ to USD2,070/t (v/s 8% decline in LME zinc) due to lower realized premiums, which in turn was on account of higher exports (70% of volumes v/s normal level of 25%).