Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q1 FY2022 Earnings Presentation
44 slides from Jsw Steel's earnings presentation, Jul 23, 2021
Slide 1: JSW Steel Limited exchange filing cover letter
_ISW Steel Limited Regd. Office : JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051 CIN.:L27102MH1994PLC152925 Phone : +91 22 4286 1000 Fax : +91 22 4286 3000 Website: www.jsw.in JSWSL: SECT: MUM: SE: 2021-22 July 23, 2021 1. National Stock Exchange of India Ltd. 2. BSE Limited Excha
Slide 2: Q1 FY 2022 Results Presentation
Q1 FY 2022 Results Presentation 23 July 2021
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: JSW Steel Q1 FY22 Results Presentation
JSW Steel Q1 FY22 Results Presentation 3
Slide 5: Key Highlights – Q1 FY22
Key Highlights – Q1 FY22 • Highest ever quarterly Revenue from Operations: ₹ 28,902 crore • Highest ever quarterly Operating EBITDA: ₹ 10,274 crore Consolidated • Highest ever quarterly Net Profit: ₹ 5,900 crore performance • Net Debt to Equity: 1.04x and Net Debt to EBITDA1 : 1.89x • Average capaci
Slide 6: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates JSW Steel Q1 FY22 Results Presentation 5
Slide 7: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates JSW Steel Q1 FY22 Results Presentation 6
Slide 8: Covid-19 Relief Efforts
Covid-19 Relief Efforts 1,200 MT >65,000 MT 20 Lakhs 1,500+ Oxygen provided Medical Oxygen Patients across Beds across JSW Highlights everyday across supplied in 530 hospitals hospitals 9 states Apr- June 2021 supported Ongoing Initiatives Hospitals with oxygenated beds: 1,000 beds Jumbo at Vijayana
Slide 9: 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 Mr. Malay Mu
Slide 10: Environment: Targets and Strategy
Environment: Targets and Strategy SD Targets FY05 FY30 Targets Improvement Strategic Approach • Specific Energy • Technologies and strategies to reduce material and energy usage GCal/tcs 6.94 5.91 15% • Increased usage of renewable energy, scrap, PCI and NG for deep decarbonization Climate Change •
Slide 11: Health & Safety
Health & Safety JSW is committed to providing a safe and healthy working environment and achieving an injury & occupational illness free work place. Our vision is to achieve ‘Zero Harm’ Building a Culture of Health & Safety Health and Safety Competency Safety KRAs Initiatives Development • “Fire X T
Slide 12: Empowering Our Communities
Empowering Our Communities Health & Nutrition Agri-initiatives Water Over a million lives • 7,100 farmers Management impacted so far • 57,100 community supported so far • 7.95 lakh cu. m. reached out • 1,800 tons worth of additional through commodities water storage healthcare linked with capacity c
Slide 13: Sustainability Initiatives
Sustainability Initiatives ~1 GW Renewable Power usage for Steel Making Dolvi Steel Melt Shop: Reduction of Dust Emission in Steel making • 958MW Renewable power procurement approved by the board • In line with the objective of reducing thermal power • Gas Cleaning Plant and GHG emissions installed
Slide 14: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates JSW Steel Q1 FY22 Results Presentation 13
Slide 15: Global Economy
Global Economy GDP growth Forecasts (%YoY) • The World Bank upgraded CY21 Global GDP forecast to 5.6% CY20 CY21F(Jan) CY21F(June) from 4.1% earlier, supported by fiscal and monetary policy 8.3% 8.5% measures. Inflation higher but central banks currently expect 6.8% 6.0% 7.9% 4.1% 5.6% 5.4% 4.2% 5.2%
Slide 16: Global Steel
Global Steel Crude Steel Production – Jan-May (mt) China Steel Production and Export (mt) Jan-May CY19 Jan-May CY20 Jan-May CY21 China Crude Steel Production (LHS) Exports (RHS) 150 10 14.5% 8 13.9% 100 6 837 769 15.3% 731 4 50 473 415 404 2 365 364 316 0 0 China World World ex-China Jun-19 Dec-19 J
Slide 17: Indian Economy
Indian Economy IIP – Industrial (YoY) PMI – Manufacturing • Q1 FY22 was affected by the second wave of Covid, which has 60 abated sharply in June 140% 100% 50 • As lock-downs and restrictions begin to ease, economic 60% 40 activity is expected to gain momentum in Q2 FY22 20% 30 • Third consecutive y
Slide 18: Indian Steel
Indian Steel Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q4 FY21 Q1 FY22 Finished Semis Finished Semis -7.7% -15.7% 30.13 29.49 1.62 -25.8% 1.21 4.76 33.6% QoQ Trend 27.80 0.08 3.56 1.20 0.05 1.09 24.85 1.54 3.56 1.16 2.47 Crude Steel Production Apparent Steel Consumption Q
Slide 19: Agenda
Agenda Sustainability We are pleased to welcome Business Environment KL Rahul, one of India's best cricketers Operational Performance into the JSW family Financial Performance Outlook & Project Updates JSW Steel Q1 FY22 Results Presentation 18
Slide 20: Quarterly Volumes - Standalone
Quarterly Volumes - Standalone Crude Steel Production Steel Sales +39% +29% YoY -2% YoY QoQ -11% 4.19 4.10 QoQ 4.06 3.61 2.96 2.80 Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22 Flat 2.05 2.99 2.94 Flat 1.99 2.97 2.67 Long 0.45 1.05 0.96 Long 0.46 1.0
Slide 21: Quarterly Sales Highlights – Consolidated
Quarterly Sales Highlights – Consolidated Domestic Sales Total Sales OEM Retail Auto Export Domestic Other Products Value Added Special Products 2.27mt +25% VASP Q1 FY22 54% 28% 18% YoY 65% Q1 FY22 39% 45% 16% 3.47mt -14% 61% 3.03mt QoQ Q4 FY21 51% 32% 17% 75% Q4 FY21 41% 41% 18% 4.06mt 59% 1.21mt 4
Slide 22: Retail Segment Highlights – Consolidated
Retail Segment Highlights – Consolidated +99% YoY -34% In kt QoQ 961 630 523 317 312 143 439 318 174 Q1 FY21 Q4 FY21 Q1 FY22 Branded Products Others • Q1 FY22 Retail volume of 630kt, c. 2x YoY as Q1 FY21 was impacted by Covid lockdowns • Volume declined by 34% QoQ due to second wave of Covid in Indi
Slide 23: Q1 FY22 Production & Sales Summary
Q1 FY22 Production & Sales Summary All fig. in million metric tonnes Q1 FY22 Crude Steel Particulars Sales Production JSW Steel Standalone 4.10 3.61 JSW Steel USA Ohio 0.14 0.10 Joint Control Entities: Bhushan Power & Steel Ltd. 0.69 0.48 JSW Ispat Special Products Ltd. 0.14 0.14 JSW Steel Indian Op
Slide 24: Grades/ Products Approved with OEMs in Q1 FY22 (1/2)
17 Grades/ Products Approved with OEMs in Q1 FY22 (1/2) Passenger vehicle - Ultra Low Carbon(ULC), High Strength Steel for Color Coated (PPGI) for Home Appliances - Refrigerator automotive - BIW, Inner, Outer Panel Applications Member Rear Floor Side External Side Outer Rear Upper (SGARC340E - GA) R
Slide 25: Grades/ Products Approved with OEMs in Q1 FY22 (2/2)
17 Grades/ Products Approved with OEMs in Q1 FY22 (2/2) Special forging alloy steel grade for auto OEMs, for cold Electrical Steel: Unique uncoated product 50C900L for Fans, forging applications with better hardening/dimensional Mixers, LHP Pumps characteristics 1 Fan Motor(50C900L) 1 2 2 Pump Motor
Slide 26: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates JSW Steel Q1 FY22 Results Presentation 25
Slide 27: Financials – Standalone
Financials – Standalone ` crore Particulars Q1 FY22 Q1 FY21 Q4 FY21 FY21 Revenue from operations 25,959 10,293 24,398 70,727 Operating EBITDA 9,491 1,429 8,021 19,259 Other Income 200 154 195 669 Finance Cost 843 933 868 3,565 Depreciation 998 867 1,011 3,781 Exceptional Items - - 386 386 Profit bef
Slide 28: Operating EBITDA Movement Q1 FY22 – Standalone
Operating EBITDA Movement Q1 FY22 – Standalone ` crore JSW Steel Q1 FY22 Results Presentation 27
Slide 29: JSW Steel Coated Products (Consolidated)
JSW Steel Coated Products (Consolidated) Million tonnes Volumes Q1 FY22 Q1 FY21 Q4 FY21 Production (GI/GL + Tin) 0.66 0.30 0.64 Sales 0.70 0.33 0.76 ` crore Key P&L data Q1 FY22 Q1 FY21 Q4 FY21 Revenue from Operations 6,728 2,049 5,992 Operating EBITDA 963 28 649 Profit after Tax 682 (31) 429 Note:
Slide 30: Operational Performance – Ohio, USA
Operational Performance – Ohio, USA Net tonnes Operational Q1 FY22 Q1 FY21 Q4 FY21 Production - Crude Steel 1,50,539 36,471 21,170 Sales - Slab 52,391 24,490 3,402 Sales - HRC 62,678 48,865 9,880 US$ mn Key P&L data Q1 FY22 Q1 FY21 Q4 FY21 Revenue from Operations 116.53 29.39 8.45 Operating EBITDA 1
Slide 31: Operational Performance – US Plate & Pipe Mill
Operational Performance – US Plate & Pipe Mill Net tonnes Production Q1 FY22 Q1 FY21 Q4 FY21 Plate Mill 78,648 57,035 18,309 Utilization (%) 31% 23% 11% Pipe Mill 5,685 4,175 - Utilization (%) 4% 3% - Net tonnes Sales Q1 FY22 Q1 FY21 Q4 FY21 Plate Mill 67,467 53,210 16,485 Pipe Mill 4,935 4,611 203
Slide 32: Operational Performance – Piombino, Italy
Operational Performance – Piombino, Italy tonnes Production Q1 FY22 Q1 FY21 Q4 FY21 Rolled Products (Bars, Wire 63,834 72,406 77,907 Rod & Rails) Grinding Balls 10,419 12,725 11,256 tonnes Sales Q1 FY22 Q1 FY21 Q4 FY21 Rolled Products (Bars, Wire 47,906 73,801 1,00,647 Rod & Rails) Grinding Balls 11
Slide 33: Joint Controlled Entities: JISPL and BPSL
Joint Controlled Entities: JISPL and BPSL JSW Ispat Special Products Ltd (JISPL) Key Metrics Q1 FY22 Q1 FY21 Q4 FY21 Crude Steel Production (mt) 0.14 0.08 0.15 Steel Sales (mt) 0.14 0.07 0.13 Revenue from Operations (₹ Cr) 1,462 595 1,477 Operating EBIDTA (₹ Cr) 179 (35) 206 Net Profit After Tax (₹
Slide 34: Financials – Consolidated
Financials – Consolidated ` crore Particulars Q1 FY22 Q1 FY21 Q4 FY21 FY21 Revenue from operations 28,902 11,782 26,934 79,839 Operating EBITDA 10,274 1,341 8,440 20,141 Other Income 198 132 161 592 Finance Cost 993 1,016 1,005 3,957 Depreciation 1,183 1,047 1,253 4,679 Share of Profit/ (Loss) of Jo
Slide 35: Q1 FY22 Results – Drivers of Performance (Standalone)
Q1 FY22 Results – Drivers of Performance (Standalone) • Operated at 91% capacity utilization vs. 93% in Q4 FY21, impacted by supplies of 65,000 tonnes Liquid Medical Oxygen (LMO) in Q1 due to 2nd wave of Covid • Sales volumes lower by 11% QoQ, impacted by lower domestic demand due to the second wave
Slide 36: Net Debt Movement – Consolidated
Net Debt Movement – Consolidated ₹ crore Particulars 30.06.2021 31.03.2021 30.06.2020 Net Debt (₹ Cr) 54,989 52,615 54,527 Cash & cash equivalent (₹ Cr) 8,602 12,821 8,754 Net Debt/Equity (x) 1.04 1.14 1.54 Net Debt/EBITDA (x) 1.89 2.61 5.74 JSW Steel Q1 FY22 Results Presentation Note: Net Debt excl
Slide 37: Strong Balance Sheet
Strong Balance Sheet Net Gearing (ND/Equity) well Leverage (ND/EBITDA) well under the stated cap of 1.75x under the stated cap of 3.75x Diversified Funding Sources 1.75x 4.5x 1.38x 1.48x 1.34x 3.75x 1.14x Bonds and 1.04x 2.6x 2.6x debentures, 2.4x INR debt, Loans and 1.9x Foreign 43% 41% others, cur
Slide 38: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates JSW Steel Q1 FY22 Results Presentation 37
Slide 39: 70% Near-term Growth to Take India Capacity to 30.5 mtpa
70% Near-term Growth to Take India Capacity to 30.5 mtpa • 5 mtpa Dolvi expansion to commence operations by September 2021 70% near-term growth in India steel capacity (mtpa) • Increase steel-making capacity by 5mtpa at Vijayanagar from the existing 12mtpa. ▪ Total estimated capex ₹15,000 crore 1.5
Slide 40: Key Project Updates - Dolvi
Key Project Updates - Dolvi Expansion from 5 to 10 mtpa Doubling steel making capacity from 5 mtpa to 10 mtpa • Coke Oven: commenced production in February 2021 • Pellet plant: commissioned in March 2021 • HSM: Successfully rolled 1st slab in March 2021 • CDQ-2 (Coke Dry Quenching) was commissioned
Slide 41: Key Project Updates - Vijayanagar
Key Project Updates - Vijayanagar 5mtpa brownfield project • Long lead-time items ordered, Letters of Credit established • Project to be completed by FY24 CRM-1 complex capacity expansion (0.85 mtpa to 1.80 mtpa) • PLTCM project completed in Q4 FY21 • One of the two CGL lines of 0.45mtpa commissione
Slide 42: Key Project Updates- Others
Key Project Updates- Others Vasind and Tarapur: Downstream projects • Modernisation-cum-capacity enhancement projects o All expansions (except 0.45 mtpa GI/GL at Vasind) are completed o 0.25 mtpa Color Coating Line comssioned in May 2021 o 0.45 mtpa GI/GL at Vasind to be commissioned in Q2 FY22 • 0.
Slide 43: Our Steel is Helping Build Key Infrastructure in India
Our Steel is Helping Build Key Infrastructure in India FY21 Water Pipelines: c.450 km of water Solar Project: Contributed 1.75GW pipelines across major projects power (c.78%) by supplying to world’s largest Solar Park - Bhadla Solar Park (RJ) Oil & Gas Pipelines: c.300 km of pipelines across major p
Slide 44: Investor Relations Contact
Investor Relations Contact: ir.jswsteel@jsw.in JSW Steel Q1 FY22 Results Presentation 43