Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q3 FY2023 Earnings Presentation
48 slides from Jsw Steel's earnings presentation, Jan 20, 2023
Slide 1: Exchange filing cover letter for analyst presentation
JSWSL: SECT: MUM: SE: 2022-23 January 20, 2023 1. National Stock Exchange of India Ltd. 2. BSE Limited Exchange Plaza Corporate Relationship Dept. Plot No. C/1, G Block Phiroze Jeejeebhoy Towers Bandra – Kurla Complex Dalal Street, Mumbai – 400 001. Bandra (E), Mumbai – 400 051 Scrip Code No.500228
Slide 2: Q3 FY2023 Results Presentation
Q3 FY2023 Results Presentation 20 January 2023
Slide 3: Forward Looking and Cautionary Statement
Forward Looking and Cautionary Statement Certain statements in this report concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The
Slide 4: Key Highlights – Q3 FY23
Key Highlights – Q3 FY23 • Revenue from Operations: ₹ 39,134 crore • Operating EBITDA: ₹ 4,547 crore Consolidated • Net Profit: ₹ 474 crore Performance • Net Debt to Equity: 1.09x and Net Debt to EBITDA1: 3.51x • Average capacity utilization of 93% in Q3 FY23 for standalone operations (incl. Dolvi P
Slide 5: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q3 FY23 Results Presentation 4
Slide 6: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q3 FY23 Results Presentation 5
Slide 7: Sustainability Framework and Priorities
Sustainability Framework and Priorities 17 Focus Areas Governance & Oversight By Board-level Business Responsibility And Climate Change: Biodiversity: No Net Loss for Biodiversity Sustainability Committee • Aligned to India’s Nationally Determined Contributions for Climate Change as per Ms. Fiona Pa
Slide 8: Environment: Targets and Strategy
Environment: Targets and Strategy SD Targets FY05 FY30 Targets Improvement Strategic Approach • Transition from thermal to renewable energy • Specific Energy • Reduction of fuel rate in BF and DRI GCal/tcs 6.94 5.65 19% Climate • Increased use of scrap in steel making Change • GHG Emissions 3.39 1.9
Slide 9: Health & Safety
Health & Safety JSW is committed to providing a safe and healthy working environment and achieving an injury- & occupational illness-free workplace. Our vision is to achieve ‘Zero Harm’ Building a Culture of Health & Safety JSW’s Roadmap to Vision 000 Zero Zero Zero major injury harm incidents Healt
Slide 10: Our Communities
Our Communities Key Intervention Areas Maternal and Child Healthcare Miyawaki Forest Health & Agriculture Nutrition Water, Environment & Education Sanitation 400 bed Maternal & Child Healthcare wing at Developing a Miyawaki Forest in Salem to Waste Skill VIMS Ballari Medical College being built by i
Slide 11: Communities: Catalysing Greater Good through Collaborations
Communities: Catalysing Greater Good through Collaborations Partnering ‘Department of Drinking Water & Devising a first-of-its-kind Climate Sanitation’ Govt. of India through ISC for a Solutions Marketplace in India with ICC PPP model in Sanitation across 2 locations Initiated wildlife project to mi
Slide 12: Environmental Performance
Environmental Performance Specific Energy Consumption (Gcal/tonne) GHG Emission Intensity (tCO2/tcs) Specific Freshwater Consumption (m3/tcs) 2.75 6.59 6.56 4.13 3.79 6.38 2.59 6.24 2.52 2.50 2.49 2.60 2.41 2.45 6.04 2.37 5.90 2.37 FY18 FY19 FY20 FY21 FY22 9M FY23 FY18 FY19 FY20 FY21 FY22 9M FY23 FY
Slide 13: Sustainability Initiatives & Recognitions
Sustainability Initiatives & Recognitions ‘SEED’ - Decarbonisation Initiative Recognitions JSW Steel upgraded to CDP A climate rating. JSW Steel is the only manufacturing company from India, and one of three • Initiative at Vijayanagar for Decarbonisation steel companies globally to achieve this • S
Slide 14: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q3 FY23 Results Presentation 13
Slide 15: Global Economy
Global Economy GDP Growth Forecasts (%YoY) • World Bank expects 2023 global GDP growth to decelerate to CY22F (Jan 23) CY23F (June 22) CY23F (Jan 23) 1.7% (3% in June 2022) due to policy tightening by Central Banks and disruptions from Ukraine conflict. Moderating inflation, improving supply chains
Slide 16: Global Steel
Global Steel Crude Steel Production – Jan-Nov (mt) Crude Steel Demand (mt) China Steel Production and Export (mt) Jan-Nov CY20 Jan-Nov CY21 Jan-Nov CY22 CY21 CY22F (Dec 22) CY23F (Dec 22) China Crude Steel Production (LHS) 150 10 -3.7% -0.5% Exports (RHS) 8 100 1,939 1,691 1,856 1,847 -1.4% 0.6% 6 1
Slide 17: Indian Economy
Indian Economy PMI – Manufacturing & Services GST Collection (₹ Lakh Cr) • Recovery in manufacturing and services, and decline in inflation to PMI Manufacturing PMI Service support growth, but global slowdown remains a headwind. Positive 65 1.9 60 1.7 High Frequency Indicators, expected rural recove
Slide 18: Indian Steel
Indian Steel Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q2 FY23 Q3 FY23 Finished Semis Finished Semis QoQ Trend +4.5% +6.0% 2.26 3.74 31.39 0.41 30.04 29.86 +46.6% -26.7% 1.54 1.17 28.17 QoQ QoQ 1.12 0.15 1.80 0.04 1.85 1.32 -64.7% +101.8% 0.39 1.39 2.58 0.18 YoY 1.09 YoY
Slide 19: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q3 FY23 Results Presentation 18
Slide 20: Quarterly Volumes – Standalone
Quarterly Volumes – Standalone Crude Steel Production Steel Sales +21% +24% YoY +7% YoY QoQ -1% QoQ 5.32 4.95 5.01 4.95 4.41 4.00 Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22 Q2 FY23 Q3 FY23 Flat 3.00 3.60 3.70 Flat 3.15 3.57 3.89 Long 0.88 1.18 1.14 Long 0.99 1.10
Slide 21: Q3 FY23 Volumes – Consolidated India Operations
Q3 FY23 Volumes – Consolidated India Operations Crude Steel Production Total Sales Share of VASP Domestic Sales Export Domestic VASP Other OEM/Industrial Retail Auto Q3 5.55mt 5.16mt 6.06 Q3 FY23 54% 50% 38% 12% 93% FY23 +9% +20% -2% +24% QoQ YoY QoQ YoY 5.07mt Q2 5.63mt Q2 5.57 54% 44% 43% 13% FY23
Slide 22: Retail Segment and Branded Stores Highlights
Retail Segment and Branded Stores Highlights Retail Sales (in kt) Branded Stores (number of outlets) -10% 1,626 QoQ 2,196 1,980 188 new branded stores 325 added in new towns and 137 1387 979 in existing towns 1180 1,171 647 269 706 56 1301 809 800 591 710 465 Q3 FY22 Q2 FY23 Q3 FY23 JSW Shoppe JSW S
Slide 23: Production & Sales Summary
Q2 FY23 Production & Sales Summary In million metric tonnes Q3 FY23 9M FY23 Crude Steel Crude Steel Particulars Sales Sales Production Production Consolidated Indian Operations 6.06 5.55 17.25 15.51 Joint Control Entity: JSW Ispat Special Products Ltd. 0.10 0.08 0.23 0.24 Indian Operations incl. Joi
Slide 24: Grades/Products Approved in Q3 FY23
14 Grades/Products Approved in Q3 FY23 Color Coated (PPGI) for Home Appliances Tin Plate for Lug Closure Applications Lug closure Deep Freezer Cabinet Refrigerator Cabin Low Carbon Annealed & Special Alloy Steel Galvanized Steel – High Strength Steel for Structural Support Application Fork Bolt Appl
Slide 25: Grades/Products Approved in Q3 FY23
14 Grades/Products Approved in Q3 FY23 Special Alloy Steel Grade for Defense, Auto OEMs, Forging & Machining Applications High Strength Structural and Weather Resistant Hot Rolled Steel Defense Application ( Shell Casing) Hopper and Headstock in Wagon & General Application Roller Application Crank S
Slide 26: Supporting India's Transition To Green Energy
Supporting India’s Transition To Green Energy Rotor Blades Supplying Steel for Wind Mills • JSW Steel is on the way to become one of the preferred and leading suppliers to the wind sector Nacelle Rotor Hub • JSW currently supplies HR Plates for Tubular Tower which is Gear box being used for Top, Mid
Slide 27: Brand Initiatives and Customer Engagement
Brand Initiatives and Customer Engagement Diwali Film: Ghar Yani JSW Purpose Led #GharYaniJSW: Diwali film targeted at Individual home buyers, linking all JSW products used in home building: Steel, Cement & Paints Integrated Media Approach: Digital: promoted on social media & You Tube, achieved 10 M
Slide 28: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q3 FY23 Results Presentation 27
Slide 29: Financials – Standalone
Financials – Standalone ₹ crore Particulars Q3 FY23 Q2 FY23 Q3 FY22 FY22 Revenue from Operations 30,935 32,494 28,850 118,820 Operating EBITDA 4,030 1,742 6,797 31,868 Other Income 315 422 394 1,929 Finance Cost 1,344 1,093 887 3,849 Depreciation 1,263 1,207 1,237 4,511 Exceptional Gain/(Loss) - - -
Slide 30: Operating EBITDA Movement Q3 FY23 – Standalone
Operating EBITDA Movement Q3 FY23 – Standalone ₹ crore 4,030 3,897 1,742 21 1,588 EBITDA - Q2 FY23 Volume NSR Cost EBITDA - Q3 FY23 JSW Steel Q3 FY23 Results Presentation 29
Slide 31: JSW Steel Coated Products (Consolidated)
JSW Steel Coated Products (Consolidated) Million tonnes Volumes Q3 FY23 Q2 FY23 Q3 FY22 FY22 Production (GI/GL + Tin) 0.73 0.68 0.73 2.93 Sales 0.84 0.79 0.77 3.22 ₹ crore Key P&L data Q3 FY23 Q2 FY23 Q3 FY22 FY22 Revenue from 6,679 6,723 7,781 31,775 Operations Operating EBITDA (11) (79) 570 2,890
Slide 32: Bhushan Power and Steel Ltd (BPSL)
Bhushan Power and Steel Ltd (BPSL) Million tonnes Volumes Q3 FY23 Q2 FY23 Q3 FY22 FY22 Crude Steel Production 0.74 0.63 0.64 1.34 Steel Sales 0.68 0.64 0.58 1.36 ₹ crore Key P&L data Q3 FY23 Q2 FY23 Q3 FY22 FY22 Revenue from 4,998 4,805 5,083 11,208 Operations Operating EBITDA 341 (183) 1,547 3,100
Slide 33: Operational Performance – Ohio, USA
Operational Performance – Ohio, USA Net tonnes Operational Q3 FY23 Q2 FY23 Q3 FY22 FY22 Production - Crude Steel 91,962 90,709 1,80,112 605,657 Sales - Slab 44,784 63,614 74,721 213,175 Sales - HRC 43,936 52,862 92,557 318,493 US$ mn Key P&L data Q3 FY23 Q2 FY23 Q3 FY22 FY22 Revenue from Operations
Slide 34: Operational Performance – US Plate & Pipe Mill
Operational Performance – US Plate & Pipe Mill Net tonnes Production Q3 FY23 Q2 FY23 Q3 FY22 FY22 Plate Mill 80,753 77,172 76,621 292,037 Pipe Mill 8,489 4,969 1,261 12,845 Net tonnes Sales Q3 FY23 Q2 FY23 Q3 FY22 FY22 Plate Mill 74,030 74,665 66,573 266,575 Pipe Mill 6,738 4,576 1,251 12,383 US$ mn
Slide 35: Operational Performance – Piombino, Italy
Operational Performance – Piombino, Italy tonnes Production Q3 FY23 Q2 FY23 Q3 FY22 FY22 Rolled Products (Bars, Wire 68,359 65,227 104,149 319,316 Rod & Rails) Grinding Balls 9,816 10,680 15,921 49,465 tonnes Sales Q3 FY23 Q2 FY23 Q3 FY22 FY22 Rolled Products (Bars, Wire 75,946 57,116 101,511 315,45
Slide 36: Joint Controlled Entity: JSW Ispat Special Products
Joint Controlled Entity: JSW Ispat Special Products Million tonnes Key Metrics Q3 FY23 Q2 FY23 Q3 FY22 FY22 Crude Steel Production (mt) 0.10 0.03 0.14 0.58 Steel Sales (mt) 0.08 0.03 0.13 0.58 ₹ crore Key P&L data Q3 FY23 Q2 FY23 Q3 FY22 FY22 Revenue from Operations 1,102 758 1,473 6,061 Operating E
Slide 37: Financials – Consolidated
Financials – Consolidated ₹ crore Particulars Q3 FY23 Q2 FY23 Q3 FY22 FY22 Revenue from Operations 39,134 41,778 38,071 146,371 Operating EBITDA 4,547 1,752 9,132 39,007 Other Income 188 188 154 1,531 Finance Cost 1,819 1,523 1,283 4,968 Depreciation 1,882 1,805 1,764 6,001 Share of Profit/ (Loss) o
Slide 38: Q3 FY23 Results – Drivers of Performance (Standalone)
Q3 FY23 Results – Drivers of Performance (Standalone) • Operated at 93% capacity utilization for the standalone operations (incl. Dolvi Phase-II) vs 86% during Q2 FY23 Volumes • Sales volumes grew by 24% YoY driven by higher domestic sales, while lower exports led to 1% QoQ decline in sales volumes
Slide 39: Net Debt Movement – Consolidated
Net Debt Movement – Consolidated ₹ crore 2,817 2,115 69,498 3,707 65,719 774 Net Debt Sep'22 New Loans Taken Repayments Forex Impact Movement in Cash Net Debt Dec'22 & Bank Bal. Particulars 31.12.2022 30.09.2022 31.12.2021 Net Debt (₹ Cr) 69,498 65,719 66,312 Cash & cash equivalent (₹ Cr) 11,176 13,
Slide 40: Debt Profile and Credit Ratings
Debt Profile and Credit Ratings Net Gearing (ND/Equity) within Leverage (ND/EBITDA) within the stated cap of 1.75x the stated cap of 3.75x Diversified Funding Sources 1.75x 4.50x 1.38x 1.48x 1.34x 3.75x 3.51x 1.17x 1.09x 2.60x 2.61x Bonds and 2.40x Foreign 0.83x INR debt, debentures currency Loans a
Slide 41: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q3 FY23 Results Presentation 40
Slide 42: Key Project Updates - Vijayanagar
Key Project Updates - Vijayanagar 5mtpa brownfield project • Construction activities for all packages underway • Equipment erection commenced for all packages • Project to be completed by end of FY24 Coke Oven Plant • 1.5 mtpa Coke Oven battery: Battery A commissioned in September 2022. Battery B ex
Slide 43: Key Project Updates – BPSL & Other Downstream
Key Project Updates – BPSL & Other Downstream Phase-I expansion to 3.5 MTPA • Phase-I expansion completed • Ramp-up in progress Phase-II expansion to 5 MTPA • Long lead-time items ordered (new Wire Rod Mill-2 and SMS-2, PCI upgradation for BF-1 & 2, Lime Calcination Plant-6) • Civil work & Structura
Slide 44: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q3 FY23 Results Presentation 43
Slide 45: Digitalization: JSW's Approach & Impact Created
Digitalization: JSW’s Approach & Impact Created Wave 4 and Digital Vision-2026* Expand and scale Digital to best-in-class: – Enhance Sales, Marketing, branding, Customer service and eCommerce – Existing plants – Continue digital projects – New plants – ACCIL, JSW-ISPL, JSW- BPSL – Support functions
Slide 46: JSW Steel's Digital Focus Areas
JSW Steel’s Digital Focus Areas Additional Focus Technologies Used Core Systems (SAP, SalesForce, Mining Microsoft Azure, DarwinBox), IoT, AI/ML, Analytics, Cloud/Edge Computing, RPA, Intelligent Cameras Safety, Security, Sustainability led Governance R&D Leveraging JSW Digital team, Tech Finance
Slide 47: Digital Solutions for Projects
Digital Solutions for Projects Digital Initiatives for project monitoring at 5mtpa Vijayanagar expansion Monthly Drone based analytics report covering: • Critical/Near critical packages • Plan, actual and forecasts • Critical issues requiring attention 3D, 4D and 5D BIM Modelling: • Virtual model of
Slide 48: THANK YOU
THANK YOU Investor Relations Contact: ir.jswsteel@jsw.in