Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q2 FY2024 Earnings Presentation
49 slides from Jsw Steel's earnings presentation, Oct 20, 2023
Slide 1: Exchange filing cover letter for analyst presentation
JSWSL: MUM: SEC: SE: 2023-24 October 20, 2023 To, 1. National Stock Exchange of India Ltd. 2. BSE Limited Exchange Plaza Corporate Relationship Dept. Plot No. C/1, G Block Phiroze Jeejeebhoy Towers Bandra – Kurla Complex Dalal Street, Mumbai – 400 001. Bandra (E), Mumbai – 400 051 Scrip Code No.5002
Slide 2: Q2 FY2024 Results Presentation
Q2 FY2024 Results Presentation 20 October 2023 JSW Athletes from Inspire Institute of Sport shine with 17 Medals at the Asian Games
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: Agenda
Agenda Page Sustainability 5 Business Environment 13 Operational Performance 18 Financial Performance 27 Project Updates 33 Digitalisation at JSW Steel 37 Appendix 41 JSW Steel Q2 FY24 Results Presentation 3
Slide 5: Key Highlights – Q2 FY24
Key Highlights – Q2 FY24 • Revenue from Operations: ₹44,584 crore • Operating EBITDA: ₹7,886 crore Consolidated • Net Profit: ₹2,773 crore Performance • Net Debt to Equity: 0.92x and Net Debt to EBITDA1: 2.52x • Consolidated crude steel production of 6.34mt in Q2 FY24, up 12% YoY • Average India cap
Slide 6: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q2 FY24 Results Presentation 5
Slide 7: Sustainability at JSW Steel
Sustainability at JSW Steel ESG Focus Areas Driving Sustainability Initiatives Across Platforms Environment Social Climate Energy Resources change Indigenous Cultural Employee people heritage wellbeing Water Waste Waste Water resources Local Social considerations sustainability Air Biodiversity Sust
Slide 8: Our Commitments: No harm to People, Environment & Society
Our Commitments: No harm to People, Environment & Society Climate Change & Renewable Energy Circularity & Biodiversity Water Security Air Emissions 42% reduction of CO2 to Transition from thermal to Promoting Circular Economy Maintaing zero liquid discharge 70% reduction of specific process 1.95tCO2
Slide 9: Building a Strong Health & Safety Culture
Building a Strong Health & Safety Culture Safety Experience Centre at Dolvi JSW Steel’s Vision 000 Safety Initiatives & Recognitions Zero Zero Zero major Capability Building Initiatives injury harm incidents • Established a Safety Experience Center with both indoor and outdoor facilities at Dolvi Pl
Slide 10: Environmental Performance
Environmental Performance Specific Energy Consumption (Gcal/tcs) GHG Emission Intensity (tCO2/tcs) Specific Freshwater Consumption (m3/tcs) 6.56 2.60 6.38 2.52 2.49 2.50 2.48 2.36 6.04 2.45 2.45 2.46 5.77 2.41 5.66 FY20 FY21 FY22 FY23 H1 FY24 FY20 FY21 FY22 FY23 H1 FY24 FY20 FY21 FY22 FY23 H1 FY24 D
Slide 11: Sustainability Initiatives & Recognitions in Q2 FY24
Sustainability Initiatives & Recognitions in Q2 FY24 Chair Chairof ofB20 B20 India TaskForce India Task Force Project SEED • JSW Steel Chairman, Sajjan Jindal chaired the B20 India Task Force on Energy, Climate Change and Resource Efficiency • Recommendations of the taskforce were included as an inp
Slide 12: Our Commitment to Society
Our Commitment to Society Key Intervention Areas Health and Nutrition JSW Foundation joins the program Health & Agriculture for Tuberculosis-free villages: Nutrition ‘TB-Mukt Panchayat’ Water, • Focus on early detection, treatment, Environment & Education community participation and awareness Sanita
Slide 13: 17 medals from IIS at Asian Games
17 medals from IIS at Asian Games Aquatic Centre in Odisha Inspire Institute of Sports (IIS) • IIS is a state-of-the-art High Performance Centre in India and has satellite centres in Hisar, Odisha, Himachal Pradesh and Manipur • 300 athletes across 5 Olympic sports: Boxing, Wrestling, Athletics, Jud
Slide 14: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q2 FY24 Results Presentation 13
Slide 15: Global Economy
Global Economy GDP Growth Forecasts (%YoY) CY23F (Jul 23) CY23F (Oct 23) CY24F (Oct 23) • IMF expects global economy to grow 3% in 2023. Global economy has slowed YoY but not stalled, with growing regional divergences. 6.3% 6.1% 6.3% 5.2% Inflation is cooling but remains sticky. Downside risks to gl
Slide 16: Global Steel
Global Steel Crude Steel Production – Jan-Aug (mt) Steel Demand (mt) China Steel Production and Export (mt) Jan-Aug CY21 Jan-Aug CY22 Jan-Aug CY23 CY22 CY23F (Apr 23) CY23F (Oct 23) CY24F (Oct 23) China Crude Steel Production (LHS) 150 10 +0.2% +1.8% Exports (RHS) 8 100 1,256 +2.6% 1,849 1,822 1,815
Slide 17: Indian Economy
Indian Economy PMI – Manufacturing & Services GST Collections (₹ Lakh Cr) 65 PMI Manufacturing PMI Services • Robust growth driven by both manufacturing and services sectors. 2.1 1.9 Govt. thrust on infra (+48% YoY during FYTD Aug) and positive 60 1.7 consumer sentiment are driving investments. Stro
Slide 18: Indian Steel
Indian Steel Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q2 FY23 Q1 FY24 Q2 FY24 Finished Semis Finished Semis +15.9% +16.1% YoY YoY 1.83 2.33 34.85 34.81 1.54 1.58 +16.1% 1.80 0.28 -40.9% 32.80 0.33 QoQ QoQ 31.19 0.15 0.18 1.37 30.0 0.39 28.30 +19.0% 0.19 -23.7% 1.50 2.05
Slide 19: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q2 FY24 Results Presentation 18
Slide 20: Q2 FY24 Volumes – JSW Steel Consolidated
Q2 FY24 Volumes – JSW Steel Consolidated Crude Steel Production Steel Sales +12% +10% YoY -1% YoY +11% QoQ QoQ 6.43 6.34 6.34 5.66 5.74 5.71 Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 Flat 4.11 4.84 4.77 Indian Operations 5.63 5.47 6.18 USA - Ohio
Slide 21: Q2 FY24 Sales: JSW Steel Consolidated – Indian Operations
Q2 FY24 Sales: JSW Steel Consolidated – Indian Operations Customer Segments – Domestic Sales Value-Added and Special Products 5.07mt 4.65mt 5.49mt +8% YoY % of Total 54% 61% 62% Sales: 3.81 43% 38% 40% Retail 3.32 3.07 Auto 14% 13% 13% 15% 15% Industrial 14% 29% 34% 32% Construction & Infra Q2 FY23
Slide 22: Retail Segment & Branded Stores
Retail Segment & Branded Stores: JSW Steel Consolidated – Indian Operations Retail Sales (in kt) Branded Stores (number of outlets) -0.5% YoY 1,886 137 new +24.2% branded stores QoQ 237 2,196 2,186 added in new towns and 100 1,761 1,199 in existing towns 1,387 1,336 192 1,027 687 1,649 45 1,007 809
Slide 23: Q2 FY24 Production & Sales
Q2 FY24 Production & Sales In million metric tonnes Crude Steel Crude Steel Particulars Sales Sales Production Production Q2 FY24 Q2 FY23 Consolidated India Operations 6.20 6.18 5.57 5.63 USA – Ohio Operations 0.14 0.16 0.08 0.11 JSW Steel Consolidated Operations 6.34 6.34 5.66 5.74 1 JSW Ispat Spec
Slide 24: 11 Grades/Products Approved in Q2 FY24
11 Grades/Products Approved in Q2 FY24 Special Alloy Steel Grade for Auto OEMs, Defence and General Engineering Applications Ammunition Shell Casing Crankshaft for Trucks for Artillery Guns Front Axle Beam Fasteners for Aerospace Applications Oil & Gas Valves Structural Towers JSW Steel Q2 FY24 Resu
Slide 25: Brand Initiatives and Customer Engagement
Brand Initiatives and Customer Engagement Influencer Outreach- Engineer’s Day Recognition Purpose Led Digital Film launched to celebrate engineers who make our world “Better Everyday” #Engineer’s Day Impressions: 30Mn+ Reach: 13.7Mn+ Views: 6.5Mn+ “Iconic brands of India 2023 ” by “Best Construction
Slide 26: JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions
JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions Partner Online Shop Ecosystem • JSW One is one of India’s leading integrated B2B technology platforms streamlining material Product E-connect search procurement & servicing, logistics and credit forums financing for MSMEs Manufacturi
Slide 27: JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions
JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions Delivering product and solution offerings Strong customer traction and through four key business pillars stellar customer base B2B Market Size: $2tn+ B2B E-commerce full stack platform Annualized GMV INR 5,300Cr+3 Marketplaces Market
Slide 28: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q2 FY24 Results Presentation 27
Slide 29: Financials – Consolidated
Financials – Consolidated ₹ crore Particulars Q2 FY24 Q2 FY23 Q1 FY24 FY23 Revenue from operations 44,584 41,778 42,213 1,65,960 Operating EBITDA 7,886 1,752 7,046 18,547 Other Income 237 188 331 1,030 Finance Cost 2,084 1,523 1,963 6,902 Depreciation 2,019 1,805 1,900 7,474 Share of Profit/ (Loss)
Slide 30: Q2 FY24 Consolidated Results – Drivers of Performance
Q2 FY24 Consolidated Results – Drivers of Performance • Capacity utilization of 89% at Indian operations vs 92% in Q1 FY24, due to maintenance shutdowns Volumes • Total sales volumes higher by 11% QoQ and 10% YoY on strong domestic demand and inventory liquidation of 0.3 million tonnes during the qu
Slide 31: Consolidated EBITDA Movement – Q2 FY24 vs. Q1 FY24
Consolidated EBITDA Movement – Q2 FY24 vs. Q1 FY24 ₹ crore 835 1,920 47 7,886 7,046 (481) (1,482) EBITDA Volume NSR Cost Overseas Consol Adj. EBITDA Q1 FY24 Subsidiaries Q2 FY24 JSW Steel Q2 FY24 Results Presentation 30 30
Slide 32: Consolidated Net Debt Movement
Consolidated Net Debt Movement ₹ crore 2,694 69,195 66,797 755 2,202 390 3,643 Net Debt New Repayments Forex Impact JISPL Net Debt Movement Net Debt Jun'23 Loans Taken as on Jul'23 in Cash Sep'23 Particulars 30.09.2023 30.06.2023 30.09.2022 Net Debt (₹ Cr) 69,195 66,797 65,719 Cash & Cash Equivalent
Slide 33: Debt Profile and Credit Ratings
Debt Profile and Credit Ratings Net Gearing (ND/Equity) within Leverage (ND/EBITDA) within the stated cap of 1.75x the stated cap of 3.75x Diversified Funding Sources 1.75x 4.50x 1.48x 1.34x 3.75x 1.17x 3.20x Bonds and 0.92x 2.40x 2.61x debentures, 0.83x 0.89x 2.52x Foreign INR debt, 43% 41% 1.45x c
Slide 34: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q2 FY24 Results Presentation 33
Slide 35: Key Project Updates – Vijayanagar
Key Project Updates – Vijayanagar 5mtpa Brownfield Project • Constrution activities for all packages underway • Refractory erection underway for BF package • One Convertor erection completed at Steel Melt Shop • Equipment erection underway at Hot Strip Mill • Project to be completed by end of FY24 C
Slide 36: Key Project Updates – BPSL & Downstream
Key Project Updates – BPSL & Downstream Phase-II Expansion from 3.5 to 5 MTPA • SMS-2 expansion expected to be commissioned in Q3 FY24 • Civil, Structural & Equipment Erection work in progress for Wire Rod Mill-2, Lime Calcination Plant-6 • Project expected to be completed by the end of FY24 Downstr
Slide 37: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q2 FY24 Results Presentation 36
Slide 38: Digitalization: Strategy, Execution and Impact
Digitalization: Strategy, Execution and Impact Wave 4 and Digital Vision-2026* Expand and scale Digital to best-in-class: Guiding Principles – Sales & Marketing End-to-End Value Lens | Democratize – Manufacturing & Mining (O&M, Quality) Transformation Continuous Digitalization – Sustainability, Safe
Slide 39: JSW Steel's Digital Focus Areas and Anticipated Impact
JSW Steel’s Digital Focus Areas Increased Sales Additional Focus s Mining Supply Safety, Security, Governance Cost Optimisation Chain Anticipated Impact Sustainability led R&D Asset Availability Primary Finance Focus Manufacturing Cultural Transformation Emissions Reduction s Integrated Control Towe
Slide 40: Democratizing Digitalisation: Projects implemented
Democratizing Digitalisation: Projects implemented JSW Coated - Tarapur Odisha Mines Yard Management System and Defect Fuel Management System for lower fuel Monitoring System to enhance coil consumption, costs and better tracking, worker efficiency and quality sustainability compliance Sales & Marke
Slide 41: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q2 FY24 Results Presentation 40
Slide 42: Strategic Priorities to Create Shared and Sustainable Value
Strategic Priorities to Create Shared and Sustainable Value Cost leadership Being future Enhance value- Mainstreaming through ready through Strategic growth added product Strong financial sustainability resource technology-led with efficient portfolio with profile and across the optimisation and tra
Slide 43: Aligned to India's Growth Story
Aligned to India’s Growth Story Near-term growth to take JSW Steel India capacity to 37mt; potential to scale up to 50mt by end of decade Vijayanagar BPSL JISPL 28.2 37.0 50.0 13.0 0.3 2.0 1.5 Pathway to 50mtpa 1.5 5.0 5.0 1.2 3.5 Organic Growth Options • Brownfield growth potential of ~5mt at each
Slide 44: Quarterly Volumes – Standalone
Quarterly Volumes – Standalone Crude Steel Production Steel Sales +9% +8% YoY -1% YoY QoQ +10% QoQ 5.44 5.40 5.41 4.95 5.01 4.93 Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 All figures in million tonnes. JSW Steel Q2 FY24 Results Presentation Following the completion of JISPL merger with JSW Ste
Slide 45: Financials – Standalone
Financials – Standalone ₹ crore Particulars Q2 FY24 Q2 FY23 Q1 FY24 FY23 Revenue from Operations 33,738 32,494 32,791 1,31,687 Operating EBITDA 6,898 1,742 4,861 15,371 Other Income 429 422 438 1,572 Finance Cost 1,531 1,093 1,457 5,023 Depreciation 1,359 1,207 1,265 4,952 Exceptional Items Gain/(Lo
Slide 46: Financials – BPSL and JSW Steel Coated Products
Financials – BPSL and JSW Steel Coated Products BPSL Q2 FY24 Q2 FY23 Q1 FY24 FY23 Crude Steel Production (mt) 0.77 0.63 0.74 2.76 Steel Sales (mt) 0.80 0.64 0.69 2.51 Revenue from Operations (₹ crore) 5,817 4,805 5,474 20,077 Operating EBITDA (₹ crore) 745 (183) 703 1,805 Profit/(Loss) after Tax (₹
Slide 47: Financials – US Operations
Financials – US Operations USA – Ohio Operations Q2 FY24 Q2 FY23 Q1 FY24 FY23 Production - Crude Steel (net tonnes) 1,51,313 90,709 2,67,896 5,88,976 Sales - Slab (net tonnes) 1,16,091 63,614 1,81,164 2,99,272 HRC (net tonnes) 59,136 52,862 75,199 2,77,939 Revenue from Operations (US$ mn) 132.16 105
Slide 48: Financials – Piombino, Italy
Financials – Piombino, Italy Piombino, Italy Q2 FY24 Q2 FY23 Q1 FY24 FY23 Production – Rolled Products (Bars, Wire Rod & Rails) (tonnes) 61,520 65,227 97,933 2,80,354 Grinding Balls (tonnes) 3,212 10,680 11,297 48,409 Sales – Rolled Products (Bars, Wire Rod & Rails) (tonnes) 78,651 57,116 73,833 2,9
Slide 49: Thank You
THANK YOU Investor Relations Contact: ir.jswsteel@jsw.in