Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Q1 FY25 Earnings Presentation
35 slides from Jindal Steel's earnings presentation, Jul 24, 2024
Slide 1: ANOOP Digitally SINGH SINGH JUNEJA 18:08:33 +05'30'
ANOOP Digitally by ANOOP signed SINGH SINGH Date: JUNEJA 2024.07.24 JUNEJA 18:08:33 +05'30'
Slide 2: Q1FY25 Earnings Presentation
Jindal Steel & Power Q1FY25 Earnings Presentation 24th Jul 2024
Slide 3: Safe Harbour Statement
Safe Harbour Statement This presentation may contain certain forward looking statements concerning steel sector, economy and JSP’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
Slide 4: Building a nation of our dreams
Building a nation of our dreams OVER 3 DECADES OF EXCELLENCE JSP is focused towards building world-class capabilities to make India self-reliant and a global economic powerhouse
Slide 5: Company Snapshot, Macro and Sectoral Update, Business Update
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives Q1FY25 Results Project Update
Slide 6: JSP at a Glance
JSP at a Glance Growth Scaling up world-class, Innovative, value-added products High performance, integrated steel production to support India’s infrastructure customer-centric culture Focussed capacity creation Strong Net Debt/EBITDA at 1.0x Expansion program to boost Targeting Net Debt / EBITDA FC
Slide 7: Company Snapshot
Integrated Value Chain World-class Assets Mining Iron Making Liquid Steel Finished Steel 10.42 MTPA 16.82 MTPA 9.6 MTPA 15.9 MTPA 7.25 MTPA 13.75 MTPA Company Snapshot Iron-ore: Coal: Plate Mill 2.5 MTPA 3.0 MTPA Direct Reduce Iron (DRI) Steel Melting Shop (SMS) Tensa 3.11 MTPA Gare Palma IV/6 4 MTP
Slide 8: Macro and Sectoral Update
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives Q1FY25 Results Project Update
Slide 9: India continues to drive global steel demand in CY24
India continues to drive global steel demand in CY24 World China India 1850 2% 2% 900 0% 0% 160 20% 1% -1% 150 15% 1% 890 -1% 15% Macro and Sectoral Update 1800 140 880 8% 8% 0% -3% -2% 130 10% -1% 870 1750 120 -1% 1763 1793 1815 -3% 5% 144 156 133 860 110 896 896 887 1700 -2% 100 0% 850 -4% CY23 CY
Slide 10: China exports remain elevated due to low domestic demand
China exports remain elevated due to low domestic demand Crude Steel Production Steel Demand (Apparent Steel Consumption) 1,100 8% 9% 1,100 12% 7% 9% 9% 6% 8% 1,000 1,000 8% 6% Macro and Sectoral Update 4% 900 900 4% 3% 1% 800 0% -2% -1% 0% -1% 800 -2% 0% -2% -4% -3% -3% -3% -1% 0% 700 1054 1031 101
Slide 11: Robust India steel demand in line with strong real GDP growth
Robust India steel demand in line with strong real GDP growth Crude Steel Production Finished Steel Consumption Crude Steel Capacity and Utilisation % 150 20% 150 20% 180 85% 16% Macro and Sectoral Update 13% 15% 13% 14% 15% 130 130 80% 11% 160 79% 80% 9% 9% 8% 10% 78% 78% 8% 10% 110 77% 110 6% 6% 5
Slide 12: India Steel Scenario
India Steel Scenario ▪ Crude Steel production grew 5% YoY during Crude Steel Production Finished Steel Consumption Q1FY25 to 36.6mt and 7% YoY in H1CY24 to Fig in Million Tonnes +7% Fig in Million Tonnes +11% 73.9mt Macro and Sectoral Update +5% 69.0 73.9 +12% 70.8 ▪ Finished steel consumption grew
Slide 13: Key Steel and RM Prices Trend
Key Steel and RM Prices Trend India HRC vs Rebar Domestic Pellet prices (Barbil) ▪ Indian Steel prices have Fig in `/tonnes Fig in `/tonnes 10000 shown mixed trends 65,000 during Q1FY25 Macro and Sectoral Update 9000 60,000 ▪ While TMT prices have 8000 rallied due to significantly 55,000 strong cons
Slide 14: Business Update
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives Q1FY25 Results Project Update
Slide 15: Focused Capacity Expansion
Focused Capacity Expansion Scaling-up for Market Leadership Growth Capex Breakup (INR Cr) Share of Capex Categories 31,000 Coal Mines 3,000 ACPP-II Business Update 1,800 5% 23,200 3,000 10% Existing Capex New Projects* JSO Angul 10% 75% Existing Capex ACPP-II Coal Mines New Projects* Total JSO Angul
Slide 16: Strategically Aligned for Shipbuilding and Defense
Strategically Aligned for Shipbuilding and Defense High Growth & GoI Focus Segment JSP initiatives Collaborations to be “first choice” Pioneered development and supply of: ✓ Main Battle Tanks (CD 99) Arjun ✓ US$25B defense production target ✓ DMR - Submarine grade steel plates Supplying Ballistic re
Slide 17: Sector wise & Value-added Sales
Sector wise & Value-added Sales Customer Segments Value added Sales, Kt Business Update 1251 30% 1221 35% Infra Building &Const 1166 Engg & Packaging Automotive 4% Distribution 12% 19% Q1'24 Q4'24 Q1'25 ✓ QoQ 186 % growth in HR coil from new HSM in Angul by strategically focusing on Value added segm
Slide 18: Social Initiatives
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives Q4FY24 Results Project Update
Slide 19: Awards & Recognitions
Awards & Recognitions • National CSR Award, by Ministry of Corporate Affairs, GoI (announced in Aug 22) • CSR in Aspirational Districts/Difficult Terrains in Eastern India • Contribution in National Priority Areas and support to differently-abled • Golden Peacock CSR Award 2019 for holistic Corporat
Slide 20: Empowering our Communities
Empowering our Communities Social Initiatives HEALTH & NUTRITION VATSALYA aims to reduce Infant Mortality Rate and Maternal EDUCATION SKILL EDUCATION Mortality Rate. Benefitted 22253 women and infants in Q4 and YASHASVI aims to educate young women and girls from an O.P. JINDAL COMMUNITY COLLEGES at
Slide 21: Empowering our Communities
Empowering our Communities Social Initiatives SOCIAL INCLUSION ART AND CULTURE JINDAL PRAYAS CENTRE OF EXCELLENCE provides state-of-art facilities ENVIRONMENT AND AGRICULTURE for holistic care and nourishment for 300+ abandoned and • 72 ft Monumental Flag of India was installed at JINDAL VET SEVA Ji
Slide 22: Q1FY25 Results
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives Q1FY25 Results Project Update
Slide 23: Q1FY25 Highlights – Consolidated
Q1FY25 Highlights – Consolidated Gross revenue* Adjusted EBITDA# Adj. EBITDA per ton PAT Q1FY25 Q1FY25 Q1FY25 Q1FY25 Q1FY25 Result ₹15,788 Cr ₹2,831 Cr ₹13,527 ₹1,338 Cr Q4FY24 - ₹15,748 Cr Q4FY24 - ₹2,512 Cr Q4FY24 - ₹12,496 Q4FY24 - ₹993 Cr Q1FY24 - ₹14,539 Cr Q1FY24 - ₹2,704 Cr Q1FY24 - ₹12,696 Q
Slide 24: Net Debt and EBITDA bridge
Net Debt and EBITDA bridge Consolidated Net Debt Movement (QoQ) (INR Cr) Q1FY25 Result 11,203 10,462 301 -2,938 1,896 As at 31st Mar’24 Debt Repayment New Debt Raised Change in Cash & Cash Eq. As at 30th Jun’24 Consolidated Adjusted EBITDA Movement (QoQ) (INR Cr) 2,831 2,512 165 34 58 62 Q4FY24 Volu
Slide 25: Strong Balance Sheet
Q1FY25 Result FY19 39,137 FY20 35,918 FY21 22,146 FY22 8,876 Net Debt (INR Cr) -73% Strong Balance Sheet Consolidated Performance FY23 6,953 FY24 11,203 Q1FY25 10,462 FY19 4.65 FY20 4.56 FY21 1.53 Net Debt/EBITDA (x) FY22 0.57 -78% FY23 0.70 FY24 1.10 Q1FY25 1.00 FY19 1.23 FY20 1.15 Strengthening Fu
Slide 26: Financial Performance - Consolidated
Financial Performance - Consolidated Q1FY25 Result INR Crore Quarterly Performance Particulars Q1FY25 Q4FY24 Q1FY24 Gross Revenue* 15,788 15,748 14,539 Net Revenue 13,652 13,521 12,644 Adjusted EBITDA** 2,831 2,512 2,704 Depreciation + Amortization 683 995 588 Finance Cost (net) 332 321 329 PBT (bef
Slide 27: Financial Performance - Standalone
Financial Performance - Standalone Q1FY25 Result INR Crore Quarterly Performance Particulars Q1FY25 Q4FY24 Q1FY24 Gross Revenue* 14,929 15,847 14,220 Net Revenue 12,865 13,788 12,325 Adjusted EBITDA** 2,694 2,501 2,665 Depreciation + Amortization 564 563 540 Finance Cost (net) 183 210 258 PBT (befor
Slide 28: Project Update
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives Q1FY25 Results Project Update
Slide 29: Project Completion Status
Focused Capacity Expansion Project Completion Status Projects Indicative Timeline Civil Mechanical Electrical Project Status Update Pellet Plant – I Commissioned HSM Commissioned Slurry Pipeline Q4FY25 Pellet plant – II Q4FY26 BOF – II Q4FY25 ASU, Coke oven, RMHS Q1FY26 BF – II Q4FY25 ACPP – II Q3FY
Slide 30: Project Status Update: Blast Furnace, Basic Oxygen Furnace
Focused Capacity Expansion Project Status Update Blast Furnace Basic Oxygen Furnace Project Status Update 29
Slide 31: Project Status Update: Lime Dolo Plant, ACPP2
Focused Capacity Expansion Project Status Update Lime Dolo Plant ACPP2 Project Status Update 30
Slide 32: Project Status Update: Slurry Pipeline, RMHS
Focused Capacity Expansion Project Status Update Slurry Pipeline RMHS Project Status Update 31
Slide 33: Project Status Update: Coke Oven Battery, RMHS
Focused Capacity Expansion Project Status Update Coke Oven Battery RMHS Project Status Update 32
Slide 34: Project Status Update: HSM, CRM
Focused Capacity Expansion Project Status Update HSM (Reheating Furnace 1, 2) CRM Project Status Update 33
Slide 35: Thank you
Thank you JINDAL STEEL & POWER