Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q4 FY2018-19 Earnings Presentation
36 slides from Jsw Steel's earnings presentation, May 24, 2019
Slide 1: Exchange filing cover letter for analyst presentation
.JSR' Steel Limited Regd. Office: JSW Centre, Sandra Kurla Complex, Sandra (East), Mumbai - 400 051 CIN. : L27102MH1994PLC152925 Phone : +91 22 4286 1000 Fax : +91 22 4286 3000 Website : www.jsw.in JSWSL: SECT: MUM: SE: 2019-20 May 24, 2019 1. National Stock Exchange of India Ltd. 2. BSE Limited Exc
Slide 2: Q4 FY 2018-19 Results Presentation
JSW Steel Limited Q4 FY 2018-19 Results Presentation May 24, 2019 Better Everyday 1
Slide 3: FY 2018–19: A Record year
FY 2018–19 : A Record year Crude Steel production: 16.69 million tonnes, up by 3% YoY Highest ever Saleable Steel Sales: 15.60 million tonnes, up by 1% YoY Annual performance Operating EBITDA : ₹ 18,952 crore, up by 28% YoY PAT : ₹ 7,524 crore, up by 23% YoY Commissioned pipe conveyor for
Slide 4: Key highlights – Q4 FY19
Key highlights – Q4 FY19 Crude Steel production: 4.17 million tonnes, lower by 3% YoY Standalone Saleable Steel Sales: 4.29 million tonnes, higher by 2% YoY performance Operating EBITDA: ₹ 4,341 crores, down 14% YoY PAT: ₹ 1,745 crores, lower by 22% YoY Saleable Steel Sales: 4.31 million t
Slide 5: Agenda
Agenda Business Operational Financial Guidance Environment Performance Performance & Appendix 4
Slide 6: Global economy
Global economy GDP growth - 2018 and projections for 2019 (%YoY) 2018 2019 IMF revises global GDP forecast for 2019 yet again to 3.3% (from 3.5% in Jan 2019) 7.3% 7.1% 6.6% 6.3% US growth momentum sustains, though outlook has softened 4.5% 4.4% as fiscal impulse fades away. Fed’s decision to hol
Slide 7: Global steel demand, China production and prices
Global steel 100 China Steel Production and Export 12 Global finished steel demand growth estimates (%YoY) China Crude Steel Production (LHS) Exports (RHS) India is the fastest growing 10 80 CY18 CY19F steel market 8.3 8 7.1 60 6 40 4 2.1 2.0 * 2.2 20 2 1.3 1.7 1.0 0 0 Jul-16 Jul-17 Jul-18 Nov-16 Ma
Slide 8: Indian economy
Indian economy Industry (GVA) Growth and Gross Fixed Capital Formation (YoY) Gross fixed capital (GFC) formation continues to grow with a rise in government spending on infrastructure – likely to get an Industry (GVA) Growth (YoY) Gross Fixed Capital Formation (YoY) impetus with a stable governmen
Slide 9: Indian steel - Q4 FY2019
Indian steel - Q4 FY2019 Production and Imports (Mnt) Exports (Mnt) Consumption (mt) 1.63 30.7% 2.13 2.59 -17.0% 2.15 0.36% 8.8% 0.21 0.58 27.41 27.51 26.56 0.25 0.47 24.41 1.93 2.02 1.39 1.69 Crude Steel Production Finished Steel Consumption 4Q 18 4Q 19 4Q 18 4Q 19 4Q 18 4Q 19 Finished Semis Finish
Slide 10: Indian steel – FY2019
Indian steel – FY2019 Production and Consumption (mt) Imports (Mnt) Exports (Mnt) 4.6% -26.4% 3.3% 7.5% 8.40 8.79 11.61 8.54 1.99 0.92 0.95 103.13 106.56 97.54 2.18 90.71 7.48 7.84 9.62 6.36 Crude Steel Production Finished Steel Consumption FY 18 FY 19 FY 18 FY 19 FY18 FY19 Finished Semis Finished S
Slide 11: Agenda
Agenda Business Operational Financial Guidance Environment Performance Performance & Appendix 10
Slide 12: Quarterly volumes- standalone
Quarterly volumes- standalone Crude Steel Production Steel Sales -1% +2% +17% -3% YoY QoQ YoY QoQ 4.31 4.17 4.23 4.22 4.29 3.68 Q4 FY18 Q4 FY19 Q3 FY19 Q4 FY18 Q4 FY19 Q3 FY19 Q4 FY18 Q4 FY19 Q3 FY19 Q4 FY18 Q4 FY19 Q3 FY19 Flat 2.98 3.01 2.90 Flat 2.97 3.08 2.61 Long 1.07 0.99 1.04 Long 1.04 1.04 0
Slide 13: FY2019 volumes-standalone
FY2019 volumes-standalone Crude Steel Production Steel Sales +3% +1% YoY YoY 16.69 15.62 15.76 16.27 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 Flat 11.17 11.29 Flat 11.44 11.74 Long 3.55 3.69 Long 3.56 3.87 Semis 0.90 0.78 All figures are in million tonnes 12
Slide 14: Quarterly sales highlights – consolidated
Quarterly sales highlights – consolidated +3% +19% YoY QoQ 4.18 4.31^ 3.62^ 15% 22% 10% 3.55* 3.37* 43% 45% 3.27* 53% 15% 12% 16% 29% 31% 22% 27% 21% 16% 56% 56% 56% 35% 31% 34% Q4 FY18 Q4 FY19 Q3 FY19 Q4 FY18 Q4 FY19 Q3 FY19 OE Retail Auto Exports VA Special prodcuts Other products Sales grew by
Slide 15: Annual sales highlights – consolidated
Annual sales highlights – consolidated 0.3% YoY 15.55^ 15.60^ 23% 15% 13.19* 42% 11.91* 15% 47% 14% 29% 30% 22% 19% 55% 56% 36% 34% FY18 FY19 FY18 FY19 OE Retail Auto Exports VA Special prodcuts Other products Domestic Sales grew by 11% YoY. Company’s domestic market share increased by 50 bps Yo
Slide 16: Retail segment highlights
Retail segment highlights 3% 19% All figures in charts 1,027 YoY 1,059 QoQ 7% are in kt 892 3,857 3,594 YoY 495 497 413 1,727 1,783 532 562 479 1,867 2,074 Q4 FY18 Q4 FY19 Q3 FY19 FY18 FY19 Others Branded Products Others Branded Products Q4 FY2019: Overall retail sales grew by 3% YoY FY2019: Ove
Slide 17: Product/ Grade approved in Q4 FY19
Product/ Grade approved in Q4 FY19 EN 10149 S 550MC(HRPO) (PPGI) S550MC/S700MC(HRPO) Seat Recliner plate Refrigerator Inner & Outer boom 26MnB5(CRCA) 50C350(Electrical Steel) IS 5986_2017 ISH390LA(HRC) Door Impact beam MOTOR Enamel Coated tank 16
Slide 18: Agenda
Agenda Business Operational Financial Guidance Environment Performance Performance & Appendix 17
Slide 19: Financials – standalone
Financials – standalone ` crore Particulars Q4 FY19 Q4 FY18 FY19 FY18 Revenue from operations 19,701 20,159 76,727 67,723 Operating EBITDA 4,341 5,043 18,403 13,741 Other Income 83 73 519 213 Finance Cost 956 873 3,708 3,591 Depreciation 865 781 3,397 3,054 Profit Before Tax 2,603 3,462 11,817 7,309
Slide 20: Operating EBITDA movement – standalone
Operating EBITDA movement – standalone ` crore 5,043 86 (362) (425) 4,341 EBITDA Volume NSR Cost EBITDA Q4 FY18 Q4 FY19 19
Slide 21: Operational performance – JSW Steel Coated Products
Operational performance – JSW Steel Coated Products Million tonnes Volumes Q4 FY19 Q4 FY18 FY19 FY18 Production 0.43 0.48 1.74 1.70 Sales 0.49 0.47 1.79 2.06 ` crore Key P&L data Q4 FY19 Q4 FY18 FY19 FY18 Revenue from Operations 3,184 3,114 12,324 12,805 Operating EBITDA 86 202 393 638 Profit after
Slide 22: Operational performance – US Plate & Pipe Mill
Operational performance – US Plate & Pipe Mill Production (net tonnes) Q4 FY19 Q4 FY18 FY19 FY18 Plate Mill 81,290 71,015 333,491 248,444 Utilization (%) 34% 30% 35% 26% Pipe Mill 22,996 12,142 73,260 50,301 Utilization (%) 17% 9% 13% 9% Sales (net tonnes) Q4 FY19 Q4 FY18 FY19 FY18 Plate Mill 63,890
Slide 23: Update on new assets
Update on new assets Facilities include a 1.5 MTPA Electric Arc Furnace (EAF), 2.80 MTPA continuous Slab caster and a 3.0 MTPA Hot Strip Mill (HSM) JSW Steel USA Ohio Production of 55,264 net tonnes and sales volume of 59,660 net tonnes EBITDA (loss) of US$27.81 million for the quarter Facil
Slide 24: Financials – consolidated
Financials – consolidated ` crore Particulars Q4 FY19 Q4 FY18 FY19 FY18 Revenue from operations 22,368 21,336 84,757 73,211 Operating EBITDA 4,440 5,290 18,952 14,794 Other Income 53 45 204 167 Finance Cost 1,046 883 3,917 3,701 Depreciation 1,084 865 4,041 3,387 Profit Before Tax 2,363 3,587 11,198
Slide 25: Net debt movement – consolidated
Net debt movement – consolidated ` crore 7,007 2,121 192 4,755 46,030 45,969 Net Debt* New Loan Taken Repayments Fx Impact Movement in Cash Net Debt* as on Dec '18 & Cash Equivalents as on Mar '19 Particulars 31.03.2019 31.12.2018 31.03.2018 Net Debt (crore) 45,969 46,030 38,019 Cash & cash equivale
Slide 26: Q4 FY19 Results – Drivers of Performance
Q4 FY19 Results – Drivers of Performance Production volume decreased by 3% YoY on back of planned shutdown at Dolvi works Volumes Overall sales volume increased by 3% YoY primarily driven by liquidation of accumulated inventory in international markets. Exports accounted for 22% of total volumes
Slide 27: FY 2020 - Outlook
FY 2020 - Outlook Domestic steel demand likely to grow by 6.5% – 7% in FY2020, on the back of strong momentum in government spending on infrastructure After a strong growth in H1 FY2019, growth in vehicle production and consumer durable volumes have corrected sharply, recovery expected from H2 F
Slide 28: Agenda
Agenda Business Operational Financial Guidance Environment Performance Performance & Appendix 27
Slide 29: Guidance for FY2020
Guidance for FY2020 +1.5% +1.5% YoY % YoY % 16.95 15.76 16.00 16.69 FY19 FY20E FY19 FY20E Crude Steel Production Saleable Steel Sales All figures are in million tonnes 28
Slide 30: Rolling Capex Plan: FY18-22
Rolling Capex Plan: FY18-22 Pellet plant, ` crore 48,715 Coke ovens, 44,376 5,714 Augmentation captive power plant, pipe 6,403 Year-wise Capex of CRM1, new conveyer etc. 869 1,375 Tinplate, Colour Coating, 16,340 Dolvi 0.7 15,708 Galvalume and MTPA 14,246 PLTCM Lines – expansion overall value on hol
Slide 31: Key new projects
Key new projects Total project cost – ` 700 crore 0.5mtpa CAL Vasind 0.5mtpa New Continuous Annealing Line at Vasind Commissioning by March 2021 Total project cost – ` 200 crore 0.25mtpa Color 0.25mtpa new Color Coated Line at Rajpura in the state of Punjab Coated Line at Rajpura Commiss
Slide 32: Project updates
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 Vijayanagar CRM expansion CRM1 complex capacity expansion from 0.85mtpa to 1.80 mtpa Two CGL lines of 0.45mtpa each
Slide 33: Project updates
Project updates Pipe conveyor at Vijayanagar For environment friendly and low cost transportation of iron ore from mines to the plant Total length of 24km and capacity of 20 mtpa Phase I completed with 10 mtpa of capacity Phase II to be commissioned in a phased manner Tinplate mill at Tarapu
Slide 34: JSW Steel Branded Portfolio
JSW Steel Branded Portfolio 33
Slide 35: 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 36: Thank you
Thank you IJSW Sicel