Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q2 FY2020 Earnings Presentation
31 slides from Jsw Steel's earnings presentation, Oct 24, 2019
Slide 1: Regulation 30 filing cover letter to stock exchanges
yew JEW Stee! Limited Regd. Office : JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051 CIN. : L27102MH1994PLC 152925 JSWSL: SECT: MUM: SE: 2019-20 Phone : +91 22 4286 1000 October 23, 2019 Fax —_: +91 22 4286 3000 , Website : wwwjsw.in 1. | National Stock Exchange of India Ltd. | 2.|
Slide 2: JSW Steel Limited Q2 FY 2019-20 Results Presentation
A Vision to Execute Better. Everyday. JSW Steel Limited Q2 FY 2019-20 Results Presentation Oct 23, 2019 1
Slide 3: Key highlights – Q2 FY20
Key highlights – Q2 FY20 Revenue from operations : ₹ 17,572 crore Operating EBITDA : ₹ 2,731 crore Consolidated Net Profit : ₹ 2,536 crore performance Net Debt to Equity : 1.36x and Net Debt to EBITDA : 3.23x Diluted Earning Per Share : ₹ 10.59 per share Operational Production from capti
Slide 4: Agenda
Agenda Business Operational Financial Projects Update Environment Performance Performance 3
Slide 5: Global economy
Global economy GDP growth – 2019 and 2020 projections in Oct 2019 (%YoY) IMF revises global GDP forecast for 2019 to 3.0% from 3.2% CY19F CY20F earlier 7.0% US growth outlook has softened on the back of contraction in 6.1% 6.1% 5.8% manufacturing, while service sector is in moderate 4.6% 3.9% ex
Slide 6: Global steel
Global steel Global finished steel demand growth estimates (%YoY) China Steel Production and Export 100 10 CY19F CY20F China Crude Steel Production (LHS) Exports (RHS) 10 80 8 CY19 Chinese steel 8 demand growth revised 7.0 60 6 to 4% from 1% earlier 6 5.0 40 4 4.0* 4 2.5 20 2 2.0 1.7 2 1.0 0.2 0 0 M
Slide 7: Indian economy
Indian economy Industry (GVA) Growth and Gross Fixed Capital Formation (YoY) Economic activities during the quarter were weak, underpinned by Industry (GVA) Growth (YoY) Gross Fixed Capital Formation (YoY) credit squeeze, weakened consumer sentiment and prolonged 12.2% 13.3% monsoon season - IIP g
Slide 8: Indian steel
Indian steel Production and Consumption (mt) Steel Imports (mt) Steel Exports( mt) 0.4% 3.8% 2.42 -4.6% 2.31 2.48 29.5% 3.21 0.09 27.09 27.19 0.31 % of imports 1.10 24.64 25.59 from FTA 1.18 countries 65% 2.11 2.22 3.94 3.23 56% Crude Steel Production Finished Steel Consumption Q2 FY19 Q2 FY20 Q2 FY
Slide 9: Government Initiatives for Steel Sector
Government Initiatives for Steel Sector Steel Import Monitoring System- SIMS Anti-Dumping Duty on Galvalume Anti-dumping duty ranging from $28-200/t SIMS implemented from 16th September implemented on Galvalume products wef 15th Oct Monitor real time import data on quality, quantity Imports
Slide 10: Agenda
Agenda Business Operational Financial Projects Environment Performance Performance Update 9
Slide 11: Quarterly volumes- standalone
Quarterly volumes- standalone Crude Steel Production Steel Sales -8% -10% -9% -4% YoY QoQ YoY QoQ 4.18 4.24 3.84 3.96 3.75 3.60 Q2 FY19 Q2 FY20 Q1 FY20 Q2 FY19 Q2 FY20 Q1 FY20 Q2 FY19 Q2 FY20 Q1 FY20 Q2 FY19 Q2 FY20 Q1 FY20 Flat 2.96 2.71 2.91 Flat 2.87 2.58 2.67 Long 0.91 0.82 1.05 Long 0.89 0.85 0
Slide 12: Half yearly volumes- standalone
Half yearly volumes- standalone Crude Steel Production Steel Sales -3% -6% YoY YoY 8.30 8.08 7.79 7.35 H1 FY19 H1 FY20 H1 FY19 H1 FY20 H1 FY19 H1 FY20 H1 FY19 H1 FY20 Flat 5.83 5.62 Flat 5.60 5.25 Long 1.84 1.87 Long 1.76 1.78 Semis 0.43 0.32 All figures are in million tonnes 11
Slide 13: Quarterly sales highlights – consolidated
Quarterly sales highlights – consolidated -9% -3% YoY QoQ 3.91^ 3.56^ 3.66^ 17% 17% 31% 45% 3.26* 3.04* 54% 51% 17% 2.47* 14% 29% 12% 20% 31% 13% 16% 31% 55% 54% 57% 35% 33% 33% Q2 FY19 Q2 FY20 Q1 FY20 Q2 FY19 Q2 FY20 Q1 FY20 OE Retail Auto Exports VA Special prodcuts Other products Tactically inc
Slide 14: Retail segment highlights
Retail segment highlights -19% -17% YoY QoQ 934 953 774 440 458 403 513 476 371 Q2 FY19 Q2 FY20 Q1 FY20 Others Branded Products All figures in charts are in kt Overall retail sales declined by 19% YoY on the back of sluggish domestic demand and tight liquidity conditions across the value chain S
Slide 15: Product/ Grade approved in Q2 FY20
Product/ Grade approved in Q2 FY20 SPFC980DP (CRCA) SPRC440E (CRCA) ASTM A 653 SS 60 (HSLA, 275 GSM) HRGI Torque Tube (for Solar Structures - Export) Seat Base Cushion Panel SPCC T (CRCA) SGCC 250GSM (GICF) Frame Tubes (HSPI) Frame Tubes (HSPI) 14
Slide 16: Agenda
Agenda Business Operational Financial Projects Environment Performance Performance Update 15
Slide 17: Financials – standalone
Financials – standalone ` crore Particulars Q2 FY20 Q2 FY19# Q1 FY20# Revenue from operations 15,520 19,707 17,698 Operating EBITDA 2,796 4,792 3,832 Other Income 188 198 159 Finance Cost 1,075 936 1,005 Depreciation 874 856 826 Profit Before Tax 1,035 3,198 2,160 Tax (1,882) 947 721 Profit after Ta
Slide 18: Operating EBITDA movement – standalone
Operating EBITDA movement – standalone ` crore 4,792 429 2,732 2,796 1,165 EBITDA Volume NSR Cost EBITDA Q2 FY19 Q2 FY20 17
Slide 19: Operational performance – JSW Steel Coated Products
Operational performance – JSW Steel Coated Products Million tonnes Volumes Q2 FY20 Q2 FY19 Q1 FY20 Production* 0.42 0.46 0.44 Sales 0.43 0.45 0.45 ` crore Key P&L data Q2 FY20 Q2 FY19 Q1 FY20 Revenue from Operations 2,788 3,144 2,990 Operating EBITDA 153 88 172 Profit after Tax 157 13 70 *Galvanised
Slide 20: Operational performance – US Plate & Pipe Mill
Operational performance – US Plate & Pipe Mill Production (net tonnes) Q2 FY20 Q2 FY19 Q1 FY20 Plate Mill 58,106 80,241 83,516 Utilization (%) 25% 34% 36% Pipe Mill 15,746 19,877 23,093 Utilization (%) 11% 14% 17% Sales (net tonnes) Q2 FY20 Q2 FY19 Q1 FY20 Plate Mill 53,333 75,179 57,032 Pipe Mill 7
Slide 21: Update on Key Subsidiaries / JV
Update on Key Subsidiaries / JV Production of 87,337 net tonnes and sales volume of 98,063 net tonnes JSW Steel USA Ohio EBITDA (loss) of US$31.6 million, including inventory write down of US$13.2million Production of 130,897 tonnes and sales volume of 131,710 tonnes JSW Steel Italy (Aferpi)
Slide 22: Financials – consolidated
Financials – consolidated ` crore Particulars Q2 FY20 Q2 FY19 Q1 FY20 Revenue from operations 17,572 21,552 19,812 Operating EBITDA 2,731 4,906 3,716 Other Income 156 56 141 Finance Cost 1,127 963 1,042 Depreciation 1,057 974 1,026 Share of Joint Ventures (15) (2) (19) Profit Before Tax 688 3,023 1,
Slide 23: Net debt movement – consolidated
Net debt movement – consolidated ` crore 3,813 2,239 611 313 49,640 47,767 Net Debt* New Loan Taken Repayments Fx Impact Movement in Cash Net Debt* as on June '19 & Cash Equivalents as on Sep '19 Particulars 30.09.2019 30.06.2019 30.09.2018 Net Debt (crore) 49,640 47,767 44,919 Cash & cash equivalen
Slide 24: Q2 FY20 Results – Drivers of Performance
Q2 FY20 Results – Drivers of Performance Production volume decreased by 8% YoY on back of prolonged monsoon, planned shutdown and slowdown in the automotive sector Volumes Overall sales volume decreased by 9% YoY primarily driven by weak domestic demand, tactically increased exports (68% YoY) an
Slide 25: Agenda
Agenda Business Operational Financial Projects Environment Performance Performance Update 24
Slide 26: Key Project updates-Dolvi to 10mtpa expansion
Key Project updates-Dolvi 5 to 10mtpa expansion Doubling steel making capacity from 5mtpa to 10mtpa To enhance capacity of flat products portfolio Commissioning by March 2020 Captive Power Installing 175 MW WHRB and 60 MW CPP to harness flue gases and steam from CDQ Commissioning by March
Slide 27: Key Project updates- Vijayanagar
Key Project updates- Vijayanagar CRM1 complex capacity expansion (0.85mtpa to 1.80 mtpa) Two CGL lines of 0.45mtpa each New 1.2mtpa Continuous Pickling line Commissioning in phases during H1 FY20 Color Coating line (0.3mtpa) Commissioning by March 2021 Coke Oven plant 1.5 MTPA Coke Oven ba
Slide 28: Key Project updates- others
Key Project updates- others Vasind and Tarapur: Downstream projects Modernisation-cum-capacity enhancement projects increase in GI/GL capacity by 1.08 MTPA increase in colour coating capacity by 0.28 MTPA Commissioning in phases during H2 FY20 Additional Tinplate Line at Tarapur (0.25mtpa)
Slide 29: JSW Steel Branded Portfolio
JSW Steel Branded Portfolio 28
Slide 30: 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 31: Thank you
Thank you IJSW Sicel