HZ's 1QFY17 EBITDA declined 42% YoY (and 14% QoQ) to INR11.3b due to weak mine production, a transitory phenomenon. However, it was higher than our estimate of INR6.7b, driven by (1) higher than expected zinc/silver volumes and realizations, and (2) deferral of INR1.9b in mining cost. Reported PAT of INR10.4b (down 49% YoY and 52% QoQ) included impact of INR1.7b in additional depreciation charge due to change in depreciation method from SLM to WDV. Impact of Ind-AS was primarily about...