EBITDA loss of $54/t in the Europe business was significantly higher than our est. of $25/t, although the India EBITDA, adjusted for Rs4.7bn write-back in other expenses, was Rs9,632/t (yoy/qoq: -37%/ -14%), in line with our est. of Rs9,640/t. Net debt remained high at Rs1,046.3bn, down Rs23bn qoq. We note that the recognition of finance lease as per AS 116 has inflated debt by Rs38bn, while the acquisition debt of Usha Martin, Rs39bn, has just started yielding positive cash flow. Deleveraging balance sheet by $1bn in FY20 has been ruled out, although the FY21 target remains intact. Capex is likely to overshoot to Rs90bn vs. Q2 guidance of Rs83bn, largely on account of...