India-headquartered steel giant Tata Steel Group has recorded a consolidated EBITDA of INR 40.18 billion ($566 million) in the second quarter ended September 30 of the financial year 2019-20, 53.5 percent lower compared to the same period of last year due to demand weakness in India and Europe, a sharp price drop and growing inventories. EBITDA in its Indian business declined by 46 percent year on year and by 25 percent quarter on quarter to INR 38.17 billion ($538 million). At the same time, consolidated net profit of the group improved by six percent in the second quarter amid the recent cut in the corporate tax rate.
Although overall market conditions were unfavorable, Tata Steel managed to hold steel production in India stable at 4.5 million mt, the same as in the first quarter and 0.2 million mt higher year on year. Moreover, sales from its Indian assets posted a 4.3 percent increase quarter on quarter. “The sharp slowdown in the automotive sector, particularly in the commercial vehicle segment, was offset by higher exports,” the producer said in its report.