Ladies and gentlemen, good day, and welcome to Hindustan Zinc first quarter FY 2022 earnings conference call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Shweta Arora, Head of Investor Relations, Hindustan Zinc. Thank you, and over to you, ma'am. Good afternoon, everyone. I welcome each one of you today for Hindustan Zinc first quarter FY 2022 results call. Today on the call we have with us our CEO, Mr. Arun Misra, our Senior Vice President and Head of Finance, Mr. Vinaya Jain, and our VP Finance and Deputy CFO, Mr. Sandeep Modi. Mr. Misra will begin with an update on business performance, while Mr. Jain will walk you through financial performance, after which we will open the floor for questions. I now request Mr. Misra to begin today's call. Over to you, Mr. Misra. Thank you, Shweta. Good afternoon and a very warm welcome to all of you. I trust that you and your family are staying safe and following all necessary precautions as well as second dose of vaccination to fight against the spread of COVID-19 pandemic in our country. Before I start today's result presentation, I regret to inform you that we lost two of our colleagues in an unfortunate accident that happened at our Rampura Agucha mine on 28th of June 2021. I would like to offer my deepest condolences to the bereaved family and friends of the deceased. One life lost is one too many. We commit to stand by their families in this hour of distress. We have conducted an in-depth incident investigation by an independent investigation committee. The learnings from the incident have been reviewed, and they are being implemented across all our operating assets. Nothing is more important to us than safety of our people, and we reiterate our commitment and vision to ensure all employees go home safely. Hindustan Zinc safety team continuously drive various initiatives to meet our vision and working committees identify critical areas for improvement to address any potential risk. In an unprecedented quarter, where second wave caught the country by surprise and took toll on lives and livelihood, our key strength lies in resilience of our people. The Hindustan Zinc family not only ensured continuity of operations, but also supported the local governing bodies in their fight against COVID-19. With the supply shortage of medical grade oxygen, we immediately deployed resources to set up bottling plants in five days to refill 500 oxygen cylinders per day to support the state of Rajasthan in their fight against COVID-19. We also supplied five tons of liquid oxygen every day to all the hospitals in the vicinity of our operating areas. We set up 100-bed COVID field hospital at Dariba, which will come handy in case there is a third wave, which is believed to be more fatal. In addition, we have handed over 550 oxygen concentrators to the state administration and a vaccination van to Udaipur administration. It is our top priority to control and avoid any spread of the contagion amongst our employees, business partners, and their families. Towards this end, we are running a mega vaccination drive, under which 100% of eligible population have already been vaccinated with at least one dose of vaccine. We will continue this drive till 100% of our employees, business partners, and their family members are administered both the doses of vaccine. We have also introduced new policies to support family members of employees in case of any loss of life due to COVID. These include paying last drawn fixed salary until notional date of retirement, education assistance for two children till graduation, and enhanced medical insurance. In addition, we have supported our business partner employees by providing medical and life insurance policy and an ex gratia amount for their family members in case of any loss of life due to COVID. Coming to an update on ESG front, I am happy to inform that Hindustan Zinc has received Most Sustainable Company in the Mining Industry 2021, a award from World Finance Sustainability Award 2021. This is to recognize our product functional, strategic, and managerial innovation and balancing it with commercial insight and market integrity while ensuring sustainability. I am also proud to share that our Rampura Agucha mine, which is one of the largest underground zinc lead operations globally, has won CII's Best Application and Use of Renewable Energy Award in 5th Edition CII National Energy Efficiency Circle 2021. During the quarter, we've also continued our engagement in the CII working group to drive accelerated climate action by Indian businesses for actively promoting the climate actions across various businesses in India. I am also elated to share that our people practices were yet again recognized, and we have received Great Place To Work award. We will continue our endeavor to make Hindustan Zinc family stronger every passing day. In our overarching goal to create mines of the future, we have continued our digitalization and automation efforts in partnership with leading global experts. Close to 40 km of high bandwidth Wi-Fi network in our SK and Rampura Agucha mine. Forms the backbone of our digital framework. This enables us to track equipment in underground mine, fetch real-time telemetry data from various equipment to improve asset utilization, productivity, and optimize costs. We have set up control rooms both in SK and RA mines, which are then connected to Central Collaboration Center in Udaipur. This ensures that senior management can review all operations based on real-time data, initiate improvement projects based on data analytics, and share information online across mines for better collaboration. Turning to market update. Zinc prices had hit a three-year high of $3,085 a ton in early June, but have slipped since then. The decline in zinc prices is due to growing worries about inflation, a slightly less dovish tone from the US Federal Reserve, strengthening of the dollar, and news that China's State Reserve Bureau will start selling portions of metal, including zinc, in the coming months. However, zinc prices subsequently recovered some of the lost ground. According to International Lead and Zinc Study Group, global demand for refined zinc metal is forecast to rise by 4.3% to 13.78 million tons this year. This is against a 3.9% decline in demand last year. Power shortage in China's southwest province of Yunnan could affect zinc smelting capacities to the tune of 1.2 million tons, and result in 20,000 tons of refined zinc production being affected. While mine production in Peru is recovering, controls in Inner Mongolia to cut power consumption could also potentially impact global supply. LME exchange stocks at their current levels are only sufficient to meet eight days of global demand, which is the lowest level for the current calendar year. Relatively low stocks and robust demand continue to put upward pressure on spot metal premiums globally. On domestic front, Indian economy showed some signs of cooling off in May due to second wave. However, of late, the weakness has already begun to dissipate as the nation exited lockdown. The overall economic effect of the second wave has been softer than the first wave of pandemic last year, and this is clearly visible in demand recovery. Speaking of zinc demand, galvanizing has been the key driving force for construction, infrastructure, and automobiles-related demand. Government's focus on infrastructure development will continue to provide necessary impetus to zinc demand locally. Over the medium-term, we also expect rising demand from transport and highway sector, which use road crash barriers and galvanized steel bridges. Similar to zinc, lead prices also saw an increase over the quarter and remained at $2,100 level owing to constrained supply. Indian domestic demand took a hit due to second wave and muted demand from auto sector. The current quarter is already showing signs of recovery, and demand from replacement auto batteries is expected to rise as distribution networks have opened up. Coming to silver, prices have remained steady and stable globally. Indian demand for silver has been subdued due to the premiums have gone up due to limited global supply. Overall, our continued foresightedness on market demand recovery scenario, pricing environment, and adaptive approach to selling that is striking a delicate balance between domestic and international sales has helped us to tread the path successfully in these uncertain times. Coming to an update on operational performance. During the quarter, mined metal production was up 9% year-on-year to 221,000 tons on account of higher ore production, partly offset by lower overall grade. Sequentially, MIC production was down 23% on account of lower ore production and overall grade. Integrated metal production was at 236,000 tons, up 17% year-on-year, in line with higher mined metal availability. Sequentially, it was down 8% in line with lower ore production due to lack of operator availability in the mines in view of second wave of COVID-19. Integrated zinc production was 188,000 tons, up 20% year-on-year, and down 4% sequentially. Integrated lead production was 48,000 tons, up 9% year-on-year and down 21% sequentially. Integrated silver production was 161 tons, up 37% a year ago in line with higher lead production, partly offset by lower grades at SK mine, while it was down 21% sequentially, primarily in line with lower lead production. Coming to an update on our projects. I'm happy to share that post-integration last quarter, the shafts at Rampura Agucha mine and SK mine are fully operational. Ventilation and cooling systems or chiller units have been deployed to facilitate the same in a seamless manner. Moreover, increased use of advanced process control in both SK and RD mills for purpose of grinding are used to improve recovery. COVID-19 restrictions, including stringent visa guidelines for Chinese nationals, continued during the quarter, which resulted in a delay of the commissioning of Fumer plant at Chanderiya. We expect Fumer commissioning to be completed by end of November 2021. Before I hand over the call to Vinaya for an update on financial performance, I would like to reiterate our production guidance for the fiscal year 2022. We maintain mined metal and refined metal production guidance for the fiscal year in the range of 1,025-1,050 kilotons each, and sellable silver production at 720 tons. With this, I hand over to Vinaya to update on the financial performance. Thank you, Arun, and good afternoon, everyone. As outlined by Arun, we continue to strengthen the foundation of our operations to deliver on the guided volume growth. Our focus and continued efforts on digitalization and automation will help us enhance our mining output. Internally and through our business partners, we are constantly looking at improving equipment reliability and availability. Our goal is to increase predictability of our operations thus reducing downtime as well as overall cost. All of this is laying a strong foundation for us to protect margins amid an uncertain environment and deliver on the promised performance for the rest of the year. Going to an update on financial performance for the first quarter of fiscal year 2022. I'm happy to share that we delivered our best ever first quarter revenue, EBITDA, and profit after tax. Revenue from operations during the quarter was at INR 6,328 crores, an increase of 64% year-on-year, led by higher metal and silver volumes, as well as higher zinc, lead, LME, and silver prices. Zinc sales volume increased 15% year-on-year and led by 9% year-on-year, in line with the higher production and robust demand. Sequentially, revenue was down 5% owing to lower zinc, lead, and silver volumes, lower metal premium, partly offset by higher zinc and lead LME prices and the rupee depreciation. Zinc volume was down 5%, while lead and silver were both down 21%. This was mainly due to lack of operator availability in view of second wave of COVID-19. Zinc LME prices were sequentially up 6%, while lead prices were up 5%. Zinc cost of production before royalty during the quarter was $1,070 per ton, higher by 5% year-on-year, and up 13% sequentially in USD terms. The upward pressure on COP, the cost of production, is primarily stemming from the surge in input commodity prices. The increase in coal and diesel prices, cement prices, as well as higher power costs, was only partly offset by higher sulfuric acid credits. The fixed costs of the business are allocated based on volumes. We were accordingly impacted by this allocation as compared to previous periods. We fully recognize the headwinds from rising input commodity prices and are doubling our efforts to address them through long-lasting structural cost reductions that will lead us to greater operational efficiencies. EBITDA for the quarter came in at INR 3,558 crores, up 123% year-on-year and down 8% sequentially. Year-on-year EBITDA was up on account of higher zinc and lead LME, an increase in silver prices, higher volumes, as well as higher metal premiums. Sequentially, EBITDA was lower on account of lower volumes and higher costs. Net profit for the quarter was INR 1,983 crores, up 46% year-on-year and down 20% sequentially. Year-on-year increase was mainly due to recovery in metal prices and higher volumes. Moreover, effective tax rate for the quarter was approximately 34.4%. The higher tax is due to the change in profitability mix between business and treasury income, and also partly due to end of certain tax benefits. Coming to our cost and CapEx guidance for the fiscal year 2022. We keep both our cost and CapEx guidance intact. As I mentioned in the previous quarter, that we were anticipating upward pressure on commodity prices. I would like to reiterate that we will continue to closely monitor the situation this quarter, and will take all necessary steps to address it. With this, I open the floor for your questions. Thank you. Ladies and gentlemen, we will now begin with the question and answer session. Anyone wishing to ask a question may please press star and one on your touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is on the line from Amit Dixit from Edelweiss. Please go ahead. Thanks for taking my question and congratulations for good set of numbers in a tough quarter. I have two questions. The first one is on mined metal production and refined metal. If I look at mined metal and refined metal production, mined metal was significantly lower than refined metal. Did we have some concentrate with us that we converted to refined metal? If so, how much concentrate is left as of now? That is the first question. Yeah. Sure. You are correct. After a very good quarter four exit, we had mined metal available with us, and we have diluted the stock that we had. Roughly about 22,000 tons of mined metal of opening stock that we had could be converted to finished goods. How much would be still left with this concentrate stock, mined metal stock? Mined metal stock will be around 13,000 tons. Okay. Thanks. The second question is, what will be the capital mine development in the quarter, and how does it change QoQ and YoY? Capital mine development is about 13 km in the quarter, and the same figure quarter one of last year was about 7.6 km. It is more than YoY 72%, and it is about slightly less than quarter four. Capital development in quarter four was about 14 km, and this is about 13 km, roughly one km less. This was also impacted by lower operator availability, is it? Development was impacted by lower operator availability. What we did this time was we balanced between deployment of operator and asset between production and development. In spite of COVID, this time we were aware how to manage, and hence we could achieve 25 km of development. Out of which 13 km would be capital and roughly about 12 km on revenue development. The same number last year after COVID effect was only 16 km. Okay, great. Thanks a lot, sir. All the best. Thank you. The next question is from the line of Vishal Chandak from DAM Capital. Please go ahead. Vishal, your line is in the talk mode. Please go ahead. Mr. Vishal Chandak, your line is in the talk mode. Please go ahead. There's no response from the current participant, we'll move on to the next. That is from the line of Rahul Jain from Systematix. Please go ahead. Yeah, hi. On your expansion in your annual report you specified for Zawar from 4 million to 4.8 and Chanderiya 0.4 to 2.5. Could you give a timeline for this? Also what is the outlay which is required to achieve this? We are moving aggressively as far as Zawar is concerned. Right now we have just obtained the environment clearance for going up to 4.6. Then the next level also it requires amount of reserves so that your mine plan gets approved. We are focusing on converting more and more resource into reserve. Once that is done, then the projects will be brought to approval stage and then we will be able to tell you exact number, how much we would need to spend for this. Should we take this year's CapEx same similar to last year? I mean, that is how we should look at it? As of now, we are not changing any CapEx guidance. Whatever we had the CapEx this year we have stated in the beginning, we continue with that. Right. Sir, how should we look at, say, over the next three to five years in terms of volume trajectory? Are you more focused on taking silver to 100,000, and that is the primary goal and kind of just sustaining operations? Very nice and very valuable question. Thank you for that. Our expansion terms right now is from 1.2 million tons to go to 1.35 million tons. We are on the drawing board for that, and that expansion is primarily also to move silver from 600, 700 tons level to maybe 800, 900 tons level, if not 1,000. That has to come from SK mine and as well as Zawar mine. These are the two mines which will primarily provide silver-bearing lead materials. For that, the necessary drawing board work that we are doing currently is how to expand entire SK mine and partly RD mine and at the same time work on Zawar mine for doubling the production and go to about eight million tons. This is the vision and accordingly, the work is happening. The moment we convert to project, surely I'll be able to share better details on this. The trajectory is going towards 1.35 million ton. Right. Sir, in your initial comments, you said that the cost increase, QoQ basis is transitory, right? What are the key components of this kind of cost increase? The major cost increases, like I said earlier, was the input commodity prices that had run up recently. Also the kind of volume impacts will be there versus last year. Sequentially, our volume was down, the allocation will be accordingly higher. The input commodity prices is a significant impact both on diesel, coal, cement, all of these factors will impact our input costs and COP accordingly. Right. Yeah, thank you so much. Very helpful. Thank you. A reminder to the participants, anyone wishing to ask a question, may you please press star and one. The next question is from the line of Vikash Singh from PhillipCapital. Please go ahead. Good afternoon, sir. Good afternoon. Sir, I just want to understand, just now you have said 800-980 of silver volumes, even with a higher capacity of 1.35 million tons. With Fumer coming in, we should have previously guiding that much in 1.2 only. Had it the problem with the Fumer or the problem with the grades where we are just lowering our silver guidance? No, Fumer will add 30 tons of silver, plus how much of the SK we successfully able to take it up so that SK will give the primarily silver-bearing material. That's why I said that with the Fumer and with the further 1.35 expansion, I'm looking at anywhere close to 1,000 tons of silver, if we can get. There's no variation in the previous guidance, right? No. Yeah. Sir, my second question pertains to our still we are carrying some debts. I understand that some investment would have been a high-yielding asset. Just wanted to understand by when we can see this debt to paid off or we would like to continue this debt carry on further. Going forward our yields were supposed to come down on our investment, right? How are we managing this, if you could explain to us? On the debt side, there are predictable maturities on the debt, and we will be paying down the debt per those maturities. That starts from? Sorry, say that again, please. The debt maturity basically starts from next year or any some maturity is having this year also, if you put some numbers. This year as well as next year. Any numbers you would be able to give us this year, how much is maturing? Around INR 1,000 crore is maturing in this year and remaining in the subsequent years. Understood, sir. Sir, just one last question. In terms of 1.2 to 1.35 million tons, is any timeline has been set up for the CapEx and any update on our DAP, basically the fertilizer plant? First part, as I said, we have to establish the basic R&R required for 1.35 million ton, and we want to assure ourselves that we have eight to 10 years of reserve with that. Currently, we have at 1.35 million ton metal level, we would have about six to seven years of reserve only. While converting resource to reserve, we have to first ensure 10 years of reserve, and then we make ourselves of that capacity. At the moment, maybe another one year of exploration, then we should be on board, and we'll come back to you after getting the necessary approvals. On the fertilizer plant, sir? On the fertilizer plant, we have almost completed the design work. We are in the current process of appointing the right CEO for the fertilizer business. Once that is done, and we take board approval by next board meeting, we should be through. Thank you, sir. That answers my question. Thank you, sir. All the best. Thank you. Thank you. We'll move on to the next question. That is on the line of Ashish Kejriwal from Centrum Broking. Please go ahead. Yeah, hi. Good evening, everyone. Thanks for the opportunity. Good evening. Two book reading questions for me. One is it possible to share coal cost on a per ton basis, what it was in the first quarter versus fourth quarter? Secondly, also if you can possibly, because you said that sulfuric acid credit was higher this quarter. What was the price for that in this quarter? Thirdly, what the project status of our Gujarat smelter, which we are planning earlier? Thank you. On the average coal cost for the Q1 last year was about INR 7,100 versus INR 8,300 this quarter. On the sulfuric acid, it was about INR 1,350 last year quarter, Q1, versus INR 3,100 this quarter. Sir, I was asking fourth quarter, is it possible to share both numbers for coal and sulfuric acid? Yes. For coal it was 6,700 approximately last quarter in Q4 and about INR 3,000 on sulfuric acid. Okay. Major is our coal cost increase, which led to higher cost of production because cement and all, that is very small actually. Yes, the diesel as well. Diesel in Q4 was about INR 65 per liter versus INR 81 per liter now. These are the two major factors. Of course, coal impacts us quite significantly. Sure. Sir, what about Gujarat smelter? Gujarat smelter, we are done the MoU. We are in the process of environment clearance. Once that is done, at the same time, we are parallely working on the design. Once the environment clearance is through, then we'll seek board's approval for taking the project up. Okay. That means the actual CapEx is at least one and a half years away. One year. Roughly a year away. Okay. Yeah. Thank you, sir. All right. Thank you. The next question is from the line of Vishal Chandak from DAM Capital. Please go ahead. Yeah. Thank you for taking my question, sir. Sir, sorry if there is a repetition because I got disconnected in between. This is with regard to your debt. If you could just let us know, do you plan to raise further debt, given the fact that your CapEx was never dependent on the debt, but we still went ahead and raised debt in the past. In this year also, do we plan to raise debt or we plan to, on a net basis, push it down further? As of now, there's no plan to raise further debt. We will continue paying down the debt as and when the maturities happen. Okay. My second question is to Mr. Arun. Sir, if you could help us with your plans for the Galena Zone mining. How do we plan to go about it and what are the timelines? I didn't get you. Plans about? The next level of mining that you mentioned, the mine under a mine. The Galena Zone. Next level of mining. Next level of mining, there are basically three fronts. One front is in Agucha, as we go to the Galena Zone deep inside the mine. It will alter the ratio of zinc to lead. That will be one area of Agucha, and we are continuously investing in development to reach the Galena Zone first, and it will also expected to give more silver out of Agucha mine. Second expansion is SK RD belt. How do I increase resource reserve base in SK and then further go down into SK mine to open up new blocks. This year itself, we are working to open up two new blocks in SK mine itself. Third is the doubling the production in Zawar mine, which has got immense potential as far as reserve and resource is concerned. For us, the maximum potential lies in Zawar mine, and Zawar mine has the huge potential for expansion. These are the three areas in which we'll be working as far as expansion is concerned. It should result in, of course, ultimately more silver, more zinc, and more lead. Sir, if you were to just help us with timelines, by when we can expect the incremental output from these mines? See, it will anywhere between, first is the exploration I said, one more year of exploration is needed, and as far as projects are concerned, within three years' time. Okay. Thank you, sir. Thank you. Thank you. We'll move on to the next question. That is from the line of Amit Dixit from Edelweiss. Please go ahead. Thanks for taking my questions again. I have two questions. The first one is on your coal sourcing mix. If you could split the coal sourcing between linkage, e-auction, and import in this quarter, and what was it in last quarter? Yeah. Coal linkage. Yeah. coal linkage, roughly one-third linkage coal and two-thirds imported coal. What was it in last quarter? It was about a quarter. In the last year quarter, it was about 1/4 linkage and 3/4 was imported. The remaining three-fourths, if I could. Last year, roughly about 25% linkage coal, 75% imported. Looking at the exponential rise in cost of imported coal, this year we have knowingly increased the linkage coal percentages, and we moved up to about 33%. We are still working on engineering solutions that we can consume more and more domestic coal in our power plant, looking in view that the coal costs are high. Okay. If you could help us with your grades this quarter on zinc and lead. Overall grade, if you look at it, this quarter was 6.91, which was compared to last year same time, it was, I would say, higher than 6.9, maybe about seven point something. In Q4? Total was 7.41 was Q4 of FY 2021. 7.41, sorry. 7.41. It has reduced from 7.41 to 6.91. Okay. This is a considerable reduction in a period of quarter. What led to that? It is a sequencing of the mine. As we are exiting last quarter, the areas that we are mining and this quarter the areas we are mining are different, number one. Number two is because of the COVID-19 effect, many of the high yield, high-grade stopes we could not reach because of lack of development. Nothing is lost. Those high-grade stopes are getting developed, and in the subsequent quarters, they will add to the grade. Okay, wonderful. You also stated about tax rate at 30%-34% in this quarter because of expiry of certain incentives. What is the tax guidance for the year as a whole? It should be around 30%. This will normalize a bit as the year goes on. The year tax rate should be around 30%. Okay, wonderful. Thanks a lot, sir. Wonderful. Thank you. Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and one. The next question is from the line of Avadhoot Joshi from New Berry Capitals. Please go ahead. Good afternoon. Thanks for the opportunity. In your annual report, it mentions about silver paste used in PV modules, and 80% of which is imported. It has been mentioned that effort has been underway with IIT Bombay to reduce the imported. I would like to know what is the plan, how our company is getting involved into it so that these volumes come to us accordingly. As of now, if you look at, we are producing to about India's, not this COVID-19-affected consumption, standard consumption of India, we are about 10%-12% of the total silver consumption in India is supplied by us, and about half of it goes into jewelry and the jewelry making. We were looking at silver paste which goes into PV cells manufacturing, is a very refined product. In India, there are manufacturers who are manufacturing it, and mostly they are also importing the silver because it gives them tax advantage when they export the silver paste to the manufacturers who are manufacturing PV cells outside India. We are looking at how to develop this product from the silver that we have, number one. Number two, it has to come along with increase of solar cell manufacturing in India, which is likely to happen for various SOPs that the Government of India has given to promote green and renewable energy. We are looking at working with IIT and then see what product we can make. This will be part of value-added product that we can manufacture out of silver that we make. Okay. Understood, sir. This will be value-added product, so margins will be greater in this area. Absolutely We can consider, yeah? Absolutely. Okay. Second question, about the NCDs what we have raised last year. If I'm correct, that we have raised about INR 3,400 crores of NCDs. I was just triangulating it with the cash and cash equivalents of currently we have INR 17,000 crores of cash. What was the reason to raise the NCDs when we are having this much of cash with us? They were temporary cash flow mismatches, and because our investments were in long-term maturities. They were temporary short-term mismatches, and that was the reason for raising this NCDs at that time. If I read correctly, NCDs are also for, I think 10 years, we have raised. We will be paying it over three years period, after each three-year period, right? Yeah, it's for three years. It's getting a repayment of 20% in September 2021, then 20% in September 2022, and balance 60% in September 2023. As Vinaya Jain said, timing mismatch, and that time, COVID-19 was there, so we were getting at very attractive rates. We wanted to keep the liquidity. That's what we have always stated in the board approval we raised. Okay, understood, sir. Thank you. Thank you. We'll move on to the next question. That is from the line of Pallav Agarwal from Antique Stock Broking. Please go ahead. Yeah, good evening, sir. I had a question on how the zinc and lead premiums have moved. I think this quarter, it probably has softened a little. How have they moved compared to 4Q and last year? Could you just give us some indication? If you see from compared to last year, it has moved a lot, primarily of course, LME and as well as ratio between domestic and exports. Last year, because of COVID, there was hardly any domestic demand. Almost more than 50% we had to export. That has led to now better realizations of premiums this year. If you look at quarter four to this one, again, there is a slight dip, as far as from quarter four of last year to this year's first quarter. Sir, are you seeing any pickup now? Do you expect that the activity levels picking up? Yes. Correct. As the lockdowns are receding and the economy, of course, India did well this time in COVID too was, they did not stop the wheel of economy. Everything was running. People were fighting COVID along with while it is running. That is showing more domestic demands also started picking up. As we speak right now also, we were doing better than what we did in quarter one. Okay, sir. What about the proportion of value-added products? In FY 2021, that had reduced. I think we had a target of 25% of revenues coming from value-added products. Roughly around, it should be close to 20% of the product is now currently value-added product, and we are on our way to become 25%. Only the strategy change was, instead of trying to produce all kinds of product, we have fixed our eyes on two products which is the maximum yielding, and we are producing it very consistently, very good feedback from the market. Which are these two products then? These are the one is CGG and another is HZDA 3. These are the other, the jumbo and all that we used to produce earlier, there is no change in that. These are the two products which require some amount of control over all the impurities, that is where we are trying to do our best and put CGG and HZDA 3 as the first. We will do HZDA 5 to make it 25%. Also we are looking at zinc powder as a product and seeing how to start producing that. More and more value-added product in zinc will get added up as the year goes by. Sure, sir. Okay, thank you. Thank you. Before we take the next question, we'd like to remind participants that you may press star and one to ask a question. The next question is from the line of Vishal Chandak from DAM Capital. Please go ahead. Thanks. Sir, if you could just help us with what was the premium that we have realized on zinc in this quarter over LME? Over LME, what is the premium? You want the exact number? It is, of course, much better than what we did last year, I can tell you that. I will not be able to give you further details on that. Sir, actually, if we calculate it, then the premium works out to in excess of about $600 per ton, while the average premium that we've generally realized is close to about $200, $250 per ton. There's a huge difference. That's why I just wanted to reconfirm whether these numbers are near to the actual realized premiums. No. As long as your premium calculation is concerned, which you said, I think we should be in that range only. Great. Any reason why this premium has shot up so drastically in this quarter? Because historically we have never seen such high premiums of $600. No, not $600. You have You have to do your other base for calculating premium, not this base. Cannot be $600. No way. Exactly. Maybe I'll take it offline, but that's the number which comes up. Take it offline. We'll discuss separately. Sir, second question was with regard to the NCDs that you have mentioned. We have raised it for 10 years for a mismatch in cash flows. If you could just help us with some more details around what kind of interest rates are we carrying on the NCDs? These are below the interest income that we are able to earn. There's definitely a positive carry on these NCDs. It's sub 5%, around 5%. Okay, through the life of the NCD, there would be a plus carry on these? That's right. Great. Thank you, sir. As of now, we are seeing that, so that's the expectation, yes. Sure. Thank you, sir. Thank you. The next question is on the line of Abhishek Mody from Emkay Global. Please go ahead. Yeah, thanks for taking my question. My question pertains to the cost of production before royalty. In the previous quarter, you had guided to it below $1,000 per ton for the full year. Now it is $1,070. Do you expect the next two quarters to be lower? First quarter was always expected to be higher than $1,000 because this is a year's average and not a quarterly number that we provided. First quarter was always expected to be a bit higher. Yes, we expect the costs to come down and that's what we are shooting for, both driven by volumes and the other measure that we mentioned on the efficiencies. With respect to the third wave, do you see at least the domestic side of things to pick up in terms of volumes? As of now, the signs are that domestic demands will slowly go up. Third wave is more in the mind, but the strategy that we have taken, and I am sure most of the big corporates in India have taken, is 100% vaccination of all employees and families, and Government of India also pushing vaccination on a fast pedal. Hopefully we won't see any breakage in supply chain, and as people go out of the lockdowns, spending will increase. Government of India will also commit to spending on infrastructure. Unless third wave, again, it's always an uncertainty I cannot rule out, unless third wave strikes much more violently than even wave two, unless that happens, I don't see any big change in the domestic demand as of now. Okay. Thanks for answering. Thank you. Ladies and gentlemen, that's the last question. I now hand the conference over to Ms. Shweta Arora for her closing comments. Thank you. Before we close today's call, I'm happy to share that we have continued our journey of comprehensive and holistic disclosure, and our second interim dividend report for the fiscal year 2021 is now available on our website. We look forward to your valuable feedback on the same. With this, I close today's call. For any follow-up questions or clarifications, please feel free to reach out to investor relations team. Thank you. Thank you. Thank you. Ladies and gentlemen, on behalf of Hindustan Zinc, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.