Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q3 FY2019-20 Earnings Presentation
30 slides from Jsw Steel's earnings presentation, Jan 24, 2020
Slide 1: Cover letter to stock exchanges on analyst presentation
,,,SW Steel Limited _,,?"" Regd. Office: JSW Centre, Sandra Kurla Complex, Sandra (East), Mumbai - 400 051 GIN. : L27102MH1994PLC152925 Phone : +9122 4286 1000 Fax : +91 22 4286 3000 Website : www.jsw.in JSWSL: SECT: MUM: SE: 2019-20 January 24, 2020 1. National Stock Exchange of India Ltd. 2. BSE L
Slide 2: JSW Steel Limited Q3 FY 2019-20 Results Presentation
A Vision to Execute Better. Everyday. JSW Steel Limited Q3 FY 2019-20 Results Presentation Jan 24, 2020 1
Slide 3: Key highlights – Q3 FY20
Key highlights – Q3 FY20 Revenue from operations : ₹ 18,055 crore Operating EBITDA : ₹ 2,451 crore Consolidated performance Net Profit : ₹ 187 crore Net Debt to Equity : 1.35x and Net Debt to EBITDA : 3.71x Diluted Earnings Per Share : ₹ 0.87 per share Operational performance Production
Slide 4: Agenda
Agenda Business Operational Financial Projects Update Environment Performance Performance 3
Slide 5: Global economy
Global economy GDP growth forecast (%YoY) IMF expects global GDP growth for CY 2020 at 3.3%, up from CY19 CY20 2.9% of 2019 6.1% 6.0% 5.8% US continues to witness strong consumer spending and 4.8% 4.4% buoyant housing market. Fading away of trade tensions likely 3.7% 3.3% 1.3% 1.0% to improve bu
Slide 6: Global steel
Global steel China Steel Production and Export (mt) Global Crude Steel production (mnt) 100 10 3.5% China Crude Steel Production (LHS) Exports (RHS) 2018 2019 +62 80 8 1,786 1,849 -14 +76 60 6 8.3% -1.6% 40 4 920 996 866 852 20 2 0 0 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Mar-17 Sep-17 Mar
Slide 7: Indian economy
Indian economy PMI Composite PMI Manufacturing PMI IIP and Manufacturing PMI prints have improved from recent 55.0 lows, signaling an improvement in business confidence 53.0 Consumer sentiment remains uncertain with weaker growth in automotive and consumer durable volumes 51.0 49.0 GFCF growth
Slide 8: Indian steel – Q3 FY20
Indian steel – Q3 FY20 Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) -2.7% 2.6% 2.10 -26% 1.57 86% 1.98 3.69 27.96 27.21 0.19 1.11 23.88 24.51 0.07 1.91 0.54 1.50 2.58 1.44 Crude Steel Production Finished Steel Consumption Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Semis
Slide 9: Agenda
Agenda Business Operational Financial Projects Environment Performance Performance Update 8
Slide 10: Quarterly volumes- standalone
Quarterly volumes- standalone Crude Steel Production Steel Sales -5% 5% 10% 12% YoY QoQ YoY QoQ 4.23 4.02 3.84 4.03 3.68 3.60 Q3 FY19 Q3 FY20 Q2 FY20 Q3 FY19 Q3 FY20 Q2 FY20 Q3 FY19 Q3 FY20 Q2 FY20 Q3 FY19 Q3 FY20 Q2 FY20 Flat 2.90 2.86 2.71 Flat 2.61 2.98 2.58 Long 1.04 0.89 0.82 Long 0.89 0.88 0.8
Slide 11: 9M FY20 volumes- standalone
9M FY20 volumes- standalone Crude Steel Production Steel Sales -3% -1% YoY YoY 12.52 11.46 11.38 12.09 9M FY19 9M FY20 9M FY19 9M FY20 9M FY19 9M FY20 9M FY19 9M FY20 Flat 8.73 8.48 Flat 8.21 8.22 Long 2.88 2.76 Long 2.65 2.66 Semis 0.60 0.50 All figures are in million tonnes 10
Slide 12: Quarterly sales highlights – consolidated
Quarterly sales highlights – consolidated 11% 13% YoY QoQ 3.62^ 4.03^ 3.56^ 10% 24% 31% 45% 50% 3.27* 3.08* 54% 16% 11% 2.47* 27% 33% 12% 21% 16% 13% 31% 56% 56% 57% 34% 34% 33% Q3 FY19 Q3 FY20 Q2 FY20 Q3 FY19 Q3 FY20 Q2 FY20 OE Retail Auto Exports VA Special prodcuts Other products Sales volumes
Slide 13: Retail segment highlights– consolidated
Retail segment highlights– consolidated 16% 33% YoY 1,032 QoQ 774 892 500 413 403 479 532 371 Q3 FY19 Q3 FY20 Q2 FY20 Others Branded Products All figures in charts are in kt Overall retail sales increased by 16% YoY and 33% QoQ, driven by strong restocking demand Share of Branded products increa
Slide 14: Product/ Grade approved in Q3 FY20
Product/ Grade approved in Q3 FY20 IS10748 GR1 (HRPO) IS10748GR4 (HRPO) Seat Frames Cross Cowl Bar S550MC (CRCA) 50C530 (ES) Seat Rail Motors 13
Slide 15: Agenda
Agenda Business Operational Financial Projects Environment Performance Performance Update 14
Slide 16: Financials – standalone
Financials – standalone ` crore Particulars Q3 FY20 Q3 FY19# Q2 FY20 Revenue from operations 15,767 18,539 15,520 Operating EBITDA 2,667 4,497 2,796 Other Income 135 62 188 Finance Cost 988 982 1,075 Depreciation 893 864 874 Profit Before Tax 921 2,713 1,035 Tax 230 791 (1,882) Profit after Tax 691
Slide 17: Operating EBITDA movement – standalone
Operating EBITDA movement – standalone ` crore 428 4,497 4,341 2,667 2,084 EBITDA Volume NSR Cost EBITDA Q3 FY19 Q3 FY20 16
Slide 18: JSW Steel Coated Products
JSW Steel Coated Products Million tonnes Volumes Q3 FY20 Q3 FY19 Q2 FY20 Production* 0.47 0.42 0.42 Sales 0.52 0.42 0.43 ` crore Key P&L data Q3 FY20 Q3 FY19 Q2 FY20 Revenue from 2,982 2,964 2,788 Operations Operating EBITDA 134 97 153 Profit after Tax 50 18 157 *Galvanised, Galvalume and Tinplate 1
Slide 19: US Plate & Pipe Mill
US Plate & Pipe Mill Production (net tonnes) Q3 FY20 Q3 FY19 Q2 FY20 Plate Mill 70,479 91,183 58,106 Utilization (%) 29% 38% 25% Pipe Mill 14,669 16,367 15,746 Utilization (%) 11% 12% 11% Sales (net tonnes) Q3 FY20 Q3 FY19 Q2 FY20 Plate Mill 52,749 69,634 53,333 Pipe Mill 11,328 16,737 7,020 USD mn
Slide 20: Update on Key Subsidiaries / JV
Update on Key Subsidiaries / JV Production of 74,272 net tonnes and sales volume of 58,611 net tonnes JSW Steel USA Ohio EBITDA (loss) of US$25.2 million, including inventory write down of $2.0million Production of 174,523 tonnes and sales volume of 156,677 tonnes JSW Steel Italy (Aferpi) EB
Slide 21: Financials – consolidated
Financials – consolidated ` crore Particulars Q3 FY20 Q3 FY19 Q2 FY20 Revenue from operations 18,055 20,318 17,572 Operating EBITDA 2,451 4,501 2,731 Other Income 127 37 156 Finance Cost 1,060 1,021 1,127 Depreciation 1,055 1,078 1,057 Share of Joint Ventures (27) (16) (15) Profit Before Tax 436 2,4
Slide 22: Net debt movement – consolidated
Net debt movement – consolidated ` crore 5,952 7,322 49,640 1,052 49,552 230 Net Debt* New Loan Taken Repayments Fx Impact Movement in Cash Net Debt* as on Sep '19 & Cash Equivalents as on Dec '19 Particulars 31.12.2019 30.09.2019 31.12.2018 Net Debt (crore) 49,552 49,640 46,030 Cash & cash equivale
Slide 23: Q3 FY20 Results – Drivers of Performance
Q3 FY20 Results – Drivers of Performance Production volume increased by 5% QoQ (2Q production was impacted by prolonged monsoon, planned shutdown and weak automotive demand) Overall sales volume increased by 13% QoQ primarily driven by a 25% QoQ increase in Volumes domestic sales Retail sales
Slide 24: Agenda
Agenda Business Operational Financial Projects Environment Performance Performance Update 23
Slide 25: Key Project updates-Dolvi
Key Project updates-Dolvi 5 to 10mtpa expansion Doubling steel making capacity from 5mtpa to 10mtpa To enhance capacity of flat products portfolio Commissioning during H1 FY21 Captive Power Installing 175 MW WHRB and 60 MW CPP to harness flue gases and steam from CDQ Commissioning by Q1 FY
Slide 26: 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 FY21 Color Coating line (0.3mtpa) Commissioning by March 2021 Coke Oven plant 1.5 MTPA Coke Oven ba
Slide 27: 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 H1 FY21 Additional Tinplate Line at Tarapur (0.25mtpa)
Slide 28: JSW Steel Branded Portfolio
JSW Steel Branded Portfolio 27
Slide 29: 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 30: Thank you
Thank you IJSW Sicel