Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Q3 FY2022 Earnings Presentation
28 slides from Jindal Steel's earnings presentation, Feb 8, 2022
Slide 1: Regulation 30 intimation cover letter to exchanges
February 8, 2022 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, 5th Floor, 1st Floor, New Trading Ring, Plot No. C/1, G Block Rotunda Building, P J Towers, Bandra-Kurla Complex, Bandra (E), Dalal Street, Fort, Mumbai – 400 001 Mumbai-400051 co
Slide 2: Q3FY'22 Key Performance Highlights
Q3FY’22 Key Performance Highlights 8th February,2022
Slide 3: Disclaimer
DISCLAIMER This presentation may contain certain forward looking statements concerning Steel sector , Economy and JSPL’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such fo
Slide 4: Table of Content
Table of Content Page No Highlights 4 Industry Update 6 Company Update 10 Way Forward 20
Slide 5: Highlights
fw Highlights
Slide 6: JSPL Consolidated Net Debt Bridge – 3QFY22
JSPL CONSOLIDATED NET DEBT BRIDGE – 3QFY221 (INR Crs) 11,400 11,200 11,000 10,800 1,032 10,600 850 10,400 11,164 10,981 10,200 2 10,000 9,800 9,600 Net Debt as on 30th Sept 21 Debt reduction Fx Impact Movement in Cash & Cash Net Debt as on 31st Dec '21 (Including prepayments) Equivalents Note: (1) B
Slide 7: Industry Update
Industry Update
Slide 8: Fundamentals for Global Steel Industry Remain Strong
FUNDAMENTALS FOR GLOBAL STEEL INDUSTRY REMAIN STRONG Healthy Steel Demand 1. Driven by Governments Stimulus across the world 2. Chinese government’s policy to reduce steel production each subsequent year should keep supply in check 3. Export rebates have been eliminated and Chinese mills are moving
Slide 9: Indian Steel Demand Remains Robust Supported by Govt Stimulus
INDIAN STEEL DEMAND REMAINS ROBUST SUPPORTED BY GOVT STIMULUS India‘s GDP Growth is projected to rebound to Indian Steel Consumption was up c.9% Q-o-Q during 9.5% during F Y 22 Q3 FY22 • At 9.5%, India’s GDP growth in FY 22 will be the fastest in at least 17 years • Healthy economic outlook due to a
Slide 10: Key Pricing Trends
KEY PRICING TRENDS HRC & Rebar Prices have been trending up in the past Long prices have significantly outperformed Flat prices in 15 days the past 6 months 75,000 HRC and Rebar prices (INR/t) 18,000 Domestic HRC less Rebar prices (INR/t) 16,000 70,000 65,922 14,000 65,000 12,000 60,000 10,000 8,000
Slide 11: Company Update
Company Update
Slide 12: Business Segments
BUSINESS SEGMENTS STEEL MINES & MINERALS India: Global: Iron Ore Coking Coal Anthracite 9.6 MTPA Steel Kasia, Odisha Mozambique South Africa 9 MTPA Pellet Plant Tensa, Odisha Australia 11
Slide 13: Steel Capacities Across Life Cycle
STEEL CAPACITIES ACROSS LIFE CYCLE IRON MAKING LIQUID STEEL FINISHED STEEL (10.42 MTPA) (9.60 MTPA) (6.65 MTPA) WRM 0.60 MTPA (Wire Rod Mill) Capacity DRI 3.12 MTPA in deail (Direct Reduced Iron) Rail Mill 0.75 MTPA SMS 9.60 MTPA (Steel Melting Shop) BSM 0.70 MTPA (Beam & Structure Mill) BF 7.30 MTP
Slide 14: India Capacities
INDIA CAPACITIES Raigarh Angul Barbil Patratu (Chhattisgarh) (Odisha) (Jharkhand) Mining (Odisha) C G P 225,000 B F 3.05 M T PA Nm 3/Hr D R I 1.32 M T PA B F 4.25 M T PA W R M 0.60 Tensa SM S 3.6MTPA D R I 1.8 M T PA M T PA 3.11 M T PA Plate Mill 1.00 Pellet Plant SM S 6 M T PA M T PA 9 M T PA Rail
Slide 15: JSPL Standalone Key Financials
JSPL STANDALONE KEY FINANCIALS (INR Crores) Q2 FY 22 Q3 FY 22 PARAMETER Q3 FY 22 Q3 FY 21 14,550 13,581 Gross Revenue* 13,581 9,906 13,261 11,955 Net Revenue 11,955 8,738 4,519 3,168 EBITDA 3,168 3,908 562 563 Depreciation + Amortization 563 566 350 325 Interest 325 529 3,626 2,303 PBT (Before Excep
Slide 16: Operational Performance: Steel Production & Sales
OPERATIONAL PERFORMANCE Steel Production & Sales* 2.13 2.07 2.01 1.96 1.93 1.93 1.93 1.91 1.87 1.84 1.82 1.67 1.67 1.61 1.61 1.57 1.57 1.58 1.54 1.56 1.52 1.51 1.48 1.40 1.34 1.36 1.33 1.32 1.30 1.27 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3
Slide 17: Key Customers & Adding...
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Slide 18: Consolidated Structure
CONSOLIDATED STRUCTURE Jindal Steel & Power (JSP) Listed Operating Entity in India 100.0% Jindal Steel O d i s h a ( J S O L ) Angul Expansion 100.0% Jindal Steel & Power (Mauritius) (JSPML) Holding company for overseas business 98.6% 73.9% 97.5% Australia South Africa Mozambique Coking Coal Anthrac
Slide 19: Summary of International Operations
SUMMARY OF INTERNATIONAL OPERATIONS MOZAMBIQUE 5 MTPA coal mine in Mozambique’s coal-rich Moatize region Q3FY22 • Coking Coal Sales Vol. 187kt • EBITDA ~US$ 22 Mn SOUTH AFRICA AUSTRALIA JSPL’s Kiepersol Colliery produces Anthracite coal, WCL comprises of two coking coal sold domestically and
Slide 20: JSPL Consolidated Key Financials
JSPL CONSOLIDATED KEY FINANCIALS (INR Crores) Q2 FY 22 Q3 FY 22 PARAMETER Q3 FY 22 Q3 FY 21 14,902 14,152 Gross Revenue* 14,152 10,449 13,612 12,525 Net Revenue 12,525 9,281 4,594 3,310 EBITDA 3,310 3,923 610 613 Depreciation + Amortization 613 608 482 472 Interest 472 643 3,507 2,236 PBT (Before Ex
Slide 21: Way Forward
Way Forward
Slide 22: JSP: Strategic Growth Framework
JSP : STRATEGIC GROWTH FRAMEWORK STEEL FOCUS SUSTAINABLE Incremental Capex GROWTH to be spent on core Sustainability of Steel & Related operations remains Business at the heart of all project considerations HIGH RETURN ON EQUITY Strong Free Cash Flow Generation & Faster payback 21
Slide 23: Phase II – Capacity Addition to Boost Volumes
PHASE II- CAPACITY ADDITION TO BOOST VOLUMES CRUDE STEEL CAPACITY (MTPA) CAPEX BREAKUP Raigarh Angul Phase I Angul Phase II Angul Phase II (3 15.9 MTPA EAF) Angul Phase II (3.3 12.9 MTPA BOF) 6.3 3.3 Margin 9.6 Expansion, 37% 8.6 INR 18,0001 Cr 6.0 6.0 6.0 Volume 5.0 Expansion, 63% 3.6 3.6 3.6 3.6 F
Slide 24: Phase II: Angul Crude Steel Capacity to Double by Mar 2025
PHASE II: ANGUL CRUDE STEEL CAPACITY TO DOUBLE TO 12 MT BY MAR 2025 RAW MATERIALS SEMI-FINISHED HOT FINISHED RAW MATERIALS IRONMAKING STEELMAKING PREPARATION PRODUCTS ROLLING PRODUCTS Electric Arc Coal Gasification Direct Reduced Furnace (EAF) Plate Mill Plant(CGP) Iron(DRI) making Coal Plate D Slab
Slide 25: Angul Phase-II: Timeline
ANGUL PHASE-II : TIMELINE Expected FY22 FY23 FY24 FY25 COD Angul Pellet Plant #1: 6MTPA Sep 22 Margin HSM Phase #1: 3MTPA Feb 23 Expansion : Angul Pellet Plant #2: 6MTPA Sep 23 INR 6,600 Cr. Slurry Pipeline Sep 23 Oxygen plant, Coke oven , RMHS Sep 23 HSM Phase #2 Expand to 5.5 MTPA Sep 23 Blast Fur
Slide 26: Odisha: Integrated Steel Plant Angul, Pellet Plant Barbil
ODISHA INTEGRATED STEEL PLANT, ANGUL PELLET PLANT, BARBIL 25
Slide 27: Chhattisgarh & Jharkhand
CHHATTISGARH & JHARKHAND INTEGRATED STEEL PLANT,RAIGARH STEEL FABRICATION PLANT, PUNJIPATRA HEAVY MACHINERY DIVISION, RAIPUR WRM & BRM, PATRATU ,JHARKHAND 26
Slide 28: Thank You!
THANK YOU! non STEEL & POWER
Jindal Steel & Power — Q3 FY2022 Earnings Presentation on 6ix