JSW Steel Limited · NSE:JSWSTEEL
JSW Steel — Q2 FY2019 Earnings Presentation
28 slides from JSW Steel's earnings presentation, Oct 25, 2018
Slide 1: Investor/Analyst Presentation filing letter to exchanges
—_ Jaw J2W¥ 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,jswin JSWSL: SECT: MUM: SE: 2018-19 October 25, 2018 1. | National Stock Exchange of India Ltd. | 2.|
Slide 2: Q2 FY 2018-19 Results Presentation
JSW Steel Limited Q2 FY 2018-19 Results Presentation October 25, 2018 Better Everyday 1
Slide 3: Key highlights – Q2 FY19
Key highlights – Q2 FY19 Crude Steel production: 4.18 million tonnes, up by 6% YoY Saleable Steel Sales: 3.96 million tonnes, up by 1% YOY Standalone performance Operating EBITDA: ₹ 4,802 crores, up by 64% YoY PAT: ₹ 2,284 crores, up by 170% YoY Net Debt to Equity: 1.30x and Net Debt to EB
Slide 4: Agenda
Agenda Business Operational Financial Projects Environment Performance Performance Update 3
Slide 5: Global economy
Global economy GDP growth - 2017 and projections for 2018 (%YoY) Global GDP forecast for 2018 trimmed to 3.7% from 3.9% 2017 2018 US growth remains robust underpinned by tight labour 7.3% 6.9% 6.7% 6.6% markets, fiscal impulse from tax cuts and enhanced 2.0% 4.7% 4.7% government spending 3.7% 3.
Slide 6: Global steel
Global steel Global finished steel demand growth estimates (%YoY) China Steel Production and Export CY18F (Apr- 18) CY18F (Oct-18) CY19F 7.5 7.3 China Crude Steel Production (LHS) Net exports (million tonnes) (RHS) 100 15 5.5 80 3.4 10 2.7 60 1.8 2.1* 2.0* 2.1 1.4 40 0 0 5 20 0 0 World China World e
Slide 7: Indian economy
Indian economy Industry (GVA) Growth and Gross Fixed Capital Formation (YoY) Industry (GVA) Growth (YoY) Gross Fixed Capital Formation (YoY) Strong momentum in government spending on infrastructure 15.9% 14.4% driving an increase in Gross Fixed Capital (GFC) formation 10.5% 10% 8.3% 8.7% 9.1% 8.8%
Slide 8: Indian steel
Indian steel -18.2% -26.7% 4.2% 6.8% 13.6% 3.26 29.3% 2.96 25.09 26.12 22.55 24.09 2.42 2.39 2.13 1.85 Crude steel Production Apparent finished steel Consumption* 2Q 18 2Q 19 1Q 19 2Q 18 2Q 19 1Q 19 2Q FY18 2Q FY19 Steel Imports Steel Exports Exports from China, Japan and Korea in YTD CY2018 Post Se
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 +6% +2% +1% +3% YoY QoQ YoY QoQ 4.18 4.11 3.94 3.92 3.96 3.83 Q2 FY18 Q2 FY19 Q1 FY19 Q2 FY18 Q2 FY19 Q1 FY19 Q2 FY18 Q2 FY19 Q1 FY19 Q2 FY18 Q2 FY19 Q1 FY19 Flat 2.89 2.96 2.87 Flat 2.83 2.87 2.73 Long 0.77 0.91 0.93 Long 0.86 0.89 0
Slide 11: Half yearly volumes – standalone
Half yearly volumes – standalone Crude Steel Production Steel Sales +6% +5% YoY YoY 7.79 8.30 7.43 7.86 1H FY18 1H FY19 1H FY18 1H FY19 1HFY18 1HFY19 1HFY18 1HFY19 Flat 5.65 5.83 Flat 5.40 5.60 Long 1.61 1.84 Long 1.61 1.76 Semis 0.42 0.43 All figures are in million tonnes 10
Slide 12: Quarterly sales highlights – consolidated
Quarterly sales highlights – consolidated -1% +4% YoY 3.91^ QoQ 3.76^ 3.96^ 26% 17% 12% 40% 45% 45% 3.26* 3.30* 2.92* 17% 16% 23% 14% 20% 20% 32% 29% 29% 54% 55% 37% 35% 35% 54% Q2 FY18 Q2 FY19 Q1 FY19 Q2 FY18 Q2 FY19 Q1 FY19 VASP Special products Other Products OE Retail Auto Exports Exports acco
Slide 13: Retail segment highlights for Q2 FY19
Retail segment highlights for Q2 FY19 +1% 0% YoY QoQ 422 440 434 521 513 519 Q2 FY18 Q2 FY19 Q1 FY19 Others Branded Products Branded sales volumes increased by 4% YoY, Retail sales was flat YoY JSW has footprint across 575 districts with over 9000 exclusive and non-exclusive retail outlets Eng
Slide 14: Product/ Grade approval in Q2 FY19
Product/ Grade approval in Q2 FY19 38MnVS6(Alloy Long) EN 10346 S 350GD(GI) 41Cr4 (Alloy Long) Wheel Hub (Sundaram Fasteners Ltd) Grain Silo(Fowler Westrup) Front Axle Beam(Bharat Forge) SAE 5130M (Alloy Long) 50SP560E(Electrical Steel) 65C530 S-C5H (Electrical Steel) Crown Wheel(Echjay Industries)
Slide 15: Agenda
Agenda Business Operational Financial Projects Environment Performance Performance Update 14
Slide 16: Financials – standalone
Financials – standalone ` crore Particulars Q2 FY19 Q2 FY18 H1 FY19 H2 FY18 Revenue from operations 19,669 15,320 38,633 30,751 Operating EBITDA 4,802 2,927 9,624 5,125 Other Income 202 49 369 97 Finance Cost 929 919 1,795 1,826 Depreciation 858 772 1677 1504 Profit Before Tax 3,217 1,285 6,521 1,89
Slide 17: Operating EBITDA movement – standalone
Operating EBITDA movement – standalone ` crore 3,676 ( 1,825 ) 4,802 2,927 24 EBITDA Volume NSR Cost EBITDA Q2 FY18 Q2 FY19 16
Slide 18: Operational performance – JSW Steel Coated Products
Operational performance – JSW Steel Coated Products Million tonnes Volumes Q2 FY19 Q2 FY18 H1 FY19 H1 FY18 Production 0.46 0.43 0.89 0.87 Sales 0.45 0.59 0.88 1.08 ` crore Key P&L data Q2 FY19 Q2 FY18 H1 FY19 H1 FY18 Revenue from Operations 3,144 3,477 6,175 6,602 Operating EBITDA 88 141 209 346 Pro
Slide 19: Operational performance – US Plate & Pipe Mill
Operational performance – US Plate & Pipe Mill Production (net tonnes) Q2 FY19 Q2 FY18 H1 FY19 H1 FY18 Plate Mill 80,241 52,315 161,018 117,806 Utilization (%) 34% 22% 34% 25% Pipe Mill 19,877 11,488 33,898 23,050 Utilization (%) 14% 8% 12% 8% Sales (net tonnes) Q2 FY19 Q2 FY18 H1 FY19 H1 FY18 Plate
Slide 20: Financials – consolidated
Financials – consolidated ` crore Particulars Q2 FY19 Q2 FY18 H1 FY19 H1 FY18 Revenue from operations 21,552 17,240 42,071 33,611 Operating EBITDA 4,906 3,036 10,011 5,653 Other Income 56 39 114 80 Finance Cost 963 950 1,850 1,895 Depreciation 974 851 1,879 1,670 Profit Before Tax 3,025 1,274 6,396
Slide 21: Net debt movement – consolidated
Net debt movement – consolidated ` crore 6,700 (2,375) 1,044 459 44,919 39,090 Net Debt* New Loan Taken Repayments Fx Impact Movement in Cash Net Debt* as on June '18 & Cash Equivalents as on Sep'18 Particulars 30.09.2018 30.06.2018 31.03.2018 Net Debt 44,919 39,090 38,019 Cash & cash equivalent (`
Slide 22: Q2 FY19 Results – Drivers of Performance
Q2 FY19 Results – Drivers of Performance Production volume increased by 6% YoY aided by higher utilisation at Vijayanagar and Salem Volumes Overall sales volume a tad lower as Q2 FY18 included 3rd party conversion arrangements Domestic sales volume increased by 11% YoY; sales to automotive seg
Slide 23: Agenda
Agenda Business Operational Financial Projects Environment Performance Performance Update 22
Slide 24: 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 25: Project updates
Project updates Pipe conveyor at Vijayanagar For environment friendly and low cost transportation of iron ore from mines to the plant Capacity of 20mtpa Commissioning: by Q3 FY2019 Tinplate mill at Tarapur To cater to the growing market of tinplate for packaging industry Capacity of 0.25 m
Slide 26: JSW Steel Branded Portfolio
JSW Steel Branded Portfolio 25
Slide 27: 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 28: Thank you
Thank you IJSW Sicel