Tata Steel India Q2 net down 49.5 pct, lags forecast

MUMBAI, Oct 27 (Reuters) - Tata Steel Ltd (TISC.BO: Quote, Profile, Research), the world's No. 8 steel maker by output, on Tuesday reported a 49.5 percent fall in September quarter profit from its Indian operations, as prices tumbled on the back of the global economic crisis. The company, which acquired Europe's second-largest steelmaker Corus in 2007, said standalone net profit fell to 9.03 billion rupees ($192 million) for the fiscal second quarter, from 17.88 billion reported a year earlier. Net sales fell to 56.3 billion rupees from 67.3 billion. A Reuters poll of 11 analysts had estimated a standalone net profit of 10.2 billion rupees on net sales of 60.67 billion rupees. Tata Steel bought European steel maker Corus in 2007. The Indian operations account for about a quarter of the group's annual global capacity of 30 million tonnes. Global steel production has tumbled this year, as demand from key industries such as construction and automotive shrank. But as macroeconomic data improves and inventories deplete, demand is gradually coming back, encouraging steelmakers to restart some idled capacity. Shares in Tata Steel, valued at about $10.1 billion, fell as much 7.3 percent to 501.35. The shares rose 30.6 percent in the September quarter, outperforming the benchmark index that improved 18.2 percent. ($1=47 rupees) (Reporting by Prashant Mehra; Editing by Jarshad Kakkrakandy)