Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q2 FY2022 Earnings Presentation
41 slides from Jsw Steel's earnings presentation, Oct 21, 2021
Slide 1: Exchange filing cover letter for analyst presentation
� � 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 j. sw.in JSWSL: SECT: MUM: SE: 2021-22 October 21, 2021 1. National Stock Exchange of India Ltd. 2. BSE Limite
Slide 2: Q2 FY 2022 Results Presentation
Q2 FY 2022 Results Presentation 21 October 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: Commissioned 5 MTPA BF-BOF Steel making facility at Dolvi
Commissioned 5 MTPA BF-BOF Steel making facility at Dolvi JSW Steel has commissioned the 5 mtpa brownfield expansion at Dolvi, which comprises one of India’s largest Blast Furnaces and Steel Melt Shops (SMS) with two converters of 350 Tons each. The new SMS is equipped with state-of- the-art energy
Slide 5: Key Highlights – Q2 FY22
Key Highlights – Q2 FY22 • Highest ever quarterly Revenue from Operations: ₹32,503 crore • Highest ever quarterly Operating EBITDA: ₹10,417 crore Consolidated • Highest ever quarterly Net Profit: ₹7,179 crore Performance • Net Debt to Equity: 0.92x and Net Debt to EBITDA1: 1.58x • Average capacity u
Slide 6: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates JSW Steel Q2 FY22 Results Presentation 5
Slide 7: 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 8: Environment: Targets and Strategy
Environment: Targets and Strategy SD Targets FY05 FY30 Targets Improvement Strategic Approach • Transition from thermal to renewable energy • Specific Energy • Reduction of fuel rate in BF and DRI GCal/tcs 6.94 5.91 15% Climate • Increased use of scrap in steel making Change • GHG Emissions 3.39 1.9
Slide 9: Environmental Performance
Environmental Performance Specific energy consumption (Gcal/tonne) GHG emission intensity (tCO2/tcs) Specific freshwater consumption (m3/tcs) 6.59 6.56 4.13 3.79 6.44 2.75 6.38 2.59 2.52 2.49 2.53 2.60 2.41 2.49 6.24 FY18 FY19 FY20 FY21 H1 FY22 FY18 FY19 FY20 FY21 H1 FY22 FY18 FY19 FY20 FY21 H1 FY22
Slide 10: 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 Awards & Initiatives Development Recognitions •
Slide 11: Strengthening Our Communities
Strengthening Our Communities JSW Foundation became the first Indian foundation to receive ISO 26000:2010 assurance New Initiatives 100,000+ 350,000+ Farmers to be reached Population to be out to for Agri value benefitted via new 73- chain enhancement bed multi-specialty over next 4 years hospital s
Slide 12: Sustainability Initiatives & Recognitions
Sustainability Initiatives & Recognitions Vijayanagar Dolvi Awards • Prestigious Steelie Award by World Steel Eliminating Fugitive Association for Excellence in Life Cycle Dust Generation from Assessment for development and promotion Stock House of new product, i.e. JSW Neosteel FE550D De-dusting Sy
Slide 13: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates JSW Steel Q2 FY22 Results Presentation 12
Slide 14: Global Economy
Global Economy GDP growth Forecasts (%YoY) • IMF reduced 2021 growth marginally (-10 bps) to 5.9%, due to Delta variant outbreaks in turn leading to global supply chain CY21F(July) CY21F(Oct) CY22F(Oct) disruptions, longer-than-expected lead times, and high inflation in many countries. Chip shortage
Slide 15: Global Steel
Global Steel Crude Steel Production – Jan-Aug (mt) Steel Demand (mt) China Steel Production and Export (mt) Jan-Aug CY19 Jan-Aug CY20 Jan-Aug CY21 CY19 CY20 CY21F (Oct) CY22F (Oct) China Crude Steel Production (LHS) 150 10 4.5% 10.1% Exports (RHS) 8 1896 1855 100 1775 1774 4.3% -1% 11.5% 6 1320 1245
Slide 16: Indian Economy
Indian Economy GST Collection (₹ Lakh Cr) • Easing Covid restrictions and steady vaccination ramp-up have PMI – Manufacturing led to strong bounce back in economic activity 1.60 1.40 60 • Auto production, mainly PV’s, affected by global chip shortages, 1.20 55 50 albeit expected to revive once chip
Slide 17: Indian Steel
Indian Steel Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q1 FY22 Q2 FY22 Finished Semis Finished Semis 4.2% -3.2% 29.17 1.21 3.7% 1.25 25.8% QoQ Trend 27.99 5.99 0.04 4.76 0.05 1.79 24.96 1.20 24.16 1.16 1.21 4.20 3.56 Crude Steel Production Apparent Steel Consumption Q1 FY
Slide 18: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates JSW Steel Q2 FY22 Results Presentation 17
Slide 19: Quarterly Volumes - Standalone
Quarterly Volumes - Standalone Crude Steel Production Steel Sales +6.5% -8.0% YoY 0% YoY QoQ +4.8% 4.10 4.12 QoQ 4.10 3.85 3.79 3.61 Q2 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q1 FY22 Q2 FY22 Flat 2.84 2.94 2.79 Flat 3.12 2.67 2.61 Long 0.77 0.96 0.92 Long 0.77 0
Slide 20: Quarterly Sales Highlights – Consolidated
Quarterly Sales Highlights – Consolidated Domestic Sales Total Sales OEM Retail Auto Export Domestic Other Products Value Added Special Products 2.37mt -7.6% VASP Q2 FY22 48% 33% 19% YoY 62% Q2 FY22 40% 46% 14% 3.83mt 10% 60% 2.27mt QoQ Q1 FY22 54% 28% 18% 65% Q1 FY22 39% 45% 16% 3.47mt 61% 3.00mt Q
Slide 21: Retail Segment Highlights – Consolidated
Retail Segment Highlights – Consolidated -10% YoY +25% In kt QoQ 871 630 785 426 387 312 445 318 399 Q2 FY21 Q1 FY22 Q2 FY22 Branded Products Others • Q2 FY22 Retail volume of 785kt, up 25% QoQ as Q1 FY22 was impacted by 2nd wave of Covid • Share of branded products remained strong at over 50% • Foo
Slide 22: Q2 FY22 Production & Sales Summary
Q2 FY22 Production & Sales Summary In million metric tonnes Q2 FY22 H1 FY22 Crude Steel Crude Steel Particulars Sales Sales Production Production JSW Steel Standalone 4.10 3.79 8.20 7.40 JSW Steel USA Ohio 0.15 0.15 0.29 0.25 Joint Control Entities: Bhushan Power & Steel Ltd. 0.69 0.76 1.38 1.24 JSW
Slide 23: Grades/Products Approved with OEMs in Q2 FY22 (1/2)
25 Grades/ Products Approved with OEMs in Q2 FY22 (1/2) High Strength & Structural Steel for automotive - Passenger & Coated & Color Coated (PPGI) for Home Appliances - AC, Refrigerator, Commercial Vehicle Applications Doors & Frames application, contributing to enhanced corrosion life 1 Torsion Bea
Slide 24: Grades/Products Approved with OEMs in Q2 FY22 (2/2)
25 Grades/ Products Approved with OEMs in Q2 FY22 (2/2) Special alloy steel grade for auto OEMs, with hardening, casing Galvalume – GL - High Strength structural steel with characteristics with better specific steel purity characteristics. excellent corrosion resistance for Solar Panel structure Sol
Slide 25: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates JSW Steel Q2 FY22 Results Presentation 24
Slide 26: Financials – Standalone
Financials – Standalone ` crore Particulars Q2 FY22 Q2 FY21 Q1 FY22 FY21 Revenue from Operations 28,000 16,797 25,959 70,727 Operating EBITDA 8,673 4,176 9,491 19,259 Other Income 919 151 200 669 Finance Cost 802 885 843 3,565 Depreciation 1,051 924 998 3,781 Exceptional Items - - - 386 Profit befor
Slide 27: Operating EBITDA Movement Q2 FY22 – Standalone
Operating EBITDA Movement Q2 FY22 – Standalone ` crore JSW Steel Q2 FY22 Results Presentation 26
Slide 28: JSW Steel Coated Products (Consolidated)
JSW Steel Coated Products (Consolidated) Million tonnes Volumes Q2 FY22 Q2 FY21 Q1 FY22 Production (GI/GL + Tin) 0.75 0.51 0.66 Sales 0.82 0.61 0.70 ` crore Key P&L data Q2 FY22 Q2 FY21 Q1 FY22 Revenue from Operations 8,331 3,782 6,728 Operating EBITDA 1,032 288 963 Profit after Tax 742 172 682 Note
Slide 29: Operational Performance – Ohio, USA
Operational Performance – Ohio, USA Net tonnes Operational Q2 FY22 Q2 FY21 Q1 FY22 Production - Crude Steel 1,68,122 25,402 1,50,539 Sales - Slab 73,275 24,702 52,391 Sales - HRC 89,072 20,837 62,678 US$ mn Key P&L data Q2 FY22 Q2 FY21 Q1 FY22 Revenue from Operations 200.83 18.43 116.53 Operating EB
Slide 30: Operational Performance – US Plate & Pipe Mill
Operational Performance – US Plate & Pipe Mill Net tonnes Production Q2 FY22 Q2 FY21 Q1 FY22 Plate Mill 73,274 54,137 78,648 Utilization (%) 31% 22% 31% Pipe Mill 4,890 - 5,685 Utilization (%) 4% - 4% Net tonnes Sales Q2 FY22 Q2 FY21 Q1 FY22 Plate Mill 63,565 51,719 67,467 Pipe Mill 5,219 447 4,935
Slide 31: Operational Performance – Piombino, Italy
Operational Performance – Piombino, Italy tonnes Production Q2 FY22 Q2 FY21 Q1 FY22 Rolled Products (Bars, Wire 57,325 61,919 63,834 Rod & Rails) Grinding Balls 7,269 10,713 10,419 tonnes Sales Q2 FY22 Q2 FY21 Q1 FY22 Rolled Products (Bars, Wire 70,142 50,622 47,906 Rod & Rails) Grinding Balls 10,90
Slide 32: Joint Controlled Entities: JISPL and BPSL
Joint Controlled Entities: JISPL and BPSL JSW Ispat Special Products Ltd (JISPL) Key Metrics Q2 FY22 Q2 FY21 Q1 FY22 Crude Steel Production (mt) 0.13 0.05 0.14 Steel Sales (mt) 0.14 0.07 0.14 Revenue from Operations (₹ Cr) 1,437 955 1,462 Operating EBIDTA (₹ Cr) 83 62 179 Net Profit After Tax (₹ Cr)
Slide 33: Financials – Consolidated
Financials – Consolidated ` crore Particulars Q2 FY22 Q2 FY21 Q1 FY22 FY21 Revenue from operations 32,503 19,264 28,902 79,839 Operating EBITDA 10,417 4,414 10,274 20,141 Other Income 946 152 198 592 Finance Cost 936 959 993 3,957 Depreciation 1,239 1,149 1,183 4,679 Share of Profit/ (Loss) of Joint
Slide 34: Q2 FY22 Results – Drivers of Performance (Standalone)
Q2 FY22 Results – Drivers of Performance (Standalone) • Operated at 91% capacity utilization, given planned shutdowns at Vijayanagar and Salem Volumes • Sales volumes higher by 5% QoQ, driven by higher Exports, increased by 26% QoQ driven by robust demand in the global economy • Net sales realisatio
Slide 35: Net Debt Movement – Consolidated
Net Debt Movement – Consolidated ₹ crore Particulars 30.09.2021 30.06.2021 30.09.2020 Net Debt (₹ Cr) 55,394 54,989 52,892 Cash & cash equivalent (₹ Cr) 15,009 8,602 7,664 Net Debt/Equity (x) 0.92 1.04 1.43 Net Debt/EBITDA (x) 1.58 1.89 4.73 JSW Steel Q2 FY22 Results Presentation Note: Net Debt excl
Slide 36: 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 4.50x 1.38x 1.48x 1.34x 3.75x 1.14x INR debt, 0.92x 2.60x 2.40x 2.61x 38% Loans and Bonds and 1.58x others, debentures, Foreign 52
Slide 37: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates JSW Steel Q2 FY22 Results Presentation 36
Slide 38: Key Project Updates - Dolvi
Key Project Updates - Dolvi Expansion from 5 to 10 mtpa Integrated Steel operations commenced and ramp-up is under way [update] 5 mtpa Steel-making Operations – Key Elements: • Pellet plant of 8 mtpa • Two Phases of Coke Oven battery totaling to 3 mtpa capacity • Blast Furnace and Steel Melt Shop •
Slide 39: Key Project Updates - Vijayanagar
Key Project Updates - Vijayanagar 5mtpa brownfield project • Long lead-time items ordered, Letters of Credit established • Civil work commenced on the site • Project to be completed by FY24 [update] CRM-1 complex capacity expansion (0.85 mtpa to 1.80 mtpa) • PLTCM project completed in Q4 FY21 • One
Slide 40: 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 commissioned in May 2021 o 0.45 mtpa GI/GL at Vasind to be commissioned in Q3 FY22 •
Slide 41: Investor Relations Contact
Investor Relations Contact: ir.jswsteel@jsw.in JSW Steel Q2 FY22 Results Presentation 40