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Robust India business performance drives EBITDA beat

Highlights of standalone results:

* Revenue stood at INR324b (-5% YoY/-2% QoQ), in line with our estimate of INR326. The QoQ decline was due to weak realization.

* Steel production stood at 5.27mt, whereas deliveries stood at 5.1mt (+6% YoY/ +3% QoQ) against our estimate of 5.06mt.

* ASP stood at INR63,404/t (-11% YoY/-5% QoQ) vs. our estimate of INR64,325/t.

* EBITDA stood at INR66b (-4% YoY/-2% QoQ), better than our estimate of INR59b, thanks to lower input costs.

* EBITDA/t stood at INR12,935 (-9% YoY/-6% QoQ) vs. our estimate of INR11,705.

* APAT stood at INR36b (-20% YoY/flat QoQ) against our estimate of INR33b.

Highlights of consolidated results:

* Sales volume stood at 7.52mt (+6% YoY/+2% QoQ) against our estimate of 7.45mt during the quarter.

* Revenue came in at INR539b (-3% YoY/-2% QoQ), in line with our estimate of INR520b. The QoQ decline was attributed to weak realization.

* Blended ASP stood at INR71,682/t (-9% YoY and -3% QoQ), in line.

* EBITDA stood at INR55b (+29% YoY/-17% QoQ) against our estimate of INR47b, on account of lower-than-expected costs. During 2Q, EBITDA was adjusted by excluding forex gains of ~INR7b.

* EBITDA/t was INR7,343 against our estimate of INR6,293.

* 2Q APAT stood at INR4.5b (-35% YoY/-66% QoQ) vs. our estimate of INR229m loss.

* For 1HFY25, revenue was at INR1087b (-6% YoY), EBITDA came in at INR122b (+29%), and APAT stood at INR18b (+34% YoY).

Highlights of European operations:

* Consolidated steel deliveries stood at 2.2mt (+13% YoY/+3% QoQ) against our estimate of 2.15mt.

* Revenue stood at INR206b (+2% YoY/-2% QoQ) against our estimate of INR196b. The miss on revenue was due to lower NSR.

* EBITDA loss stood at INR13.4b against our estimates of INR14b.

* EBITDA loss per ton stood at USD75 in 2QFY25 against USD28 in 1QFY25.

Other highlights:

* Net debt stood at INR888b in 2QFY25 vs. INR929b in 1QFY25.

* Net debt-to-EBITDA ratio was at 3.41x as of 2QFY25.

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