Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q4 FY23 Earnings Presentation
57 slides from Jsw Steel's earnings presentation, May 19, 2023
Slide 1: Exchange filing cover letter for analyst presentation
JSWSL: MUM: SEC: SE: 2023-24 May 19, 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.500228 N
Slide 2: Q4 & FY23 Results Presentation
Innovation Is Always Around Q4 & FY23 Results Presentation 19 May 2023
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: Key Highlights – Q4 FY23 & FY23
Key Highlights – Q4 FY23 & FY23 • Revenue from Operations: ₹1,65,960 crore in FY23, ₹46,962 crore in Q4 • Operating EBITDA: ₹18,547 crore in FY23, ₹7,939 crore in Q4 • Net Profit: ₹4,139 crore in FY23, 3,741 crore in Q4 Consolidated • Net Debt to Equity: 0.89x and Net Debt to EBITDA1: 3.20x Performa
Slide 5: Agenda
Agenda Page Sustainability 5 Business Environment 13 Operational Performance 19 Financial Performance 30 Outlook & Project Updates 44 Digitalisation at JSW Steel 50 JSW Steel Q4 FY23 Results Presentation 4
Slide 6: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q4 FY23 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 emissions Biodive
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 JSW Steel’s Vision 000 Safety Initiatives & Recognitions Zero Capability Building Initiatives: Zero Zero • 2,800+ employees certified as Safety Champions in major injury harm FY23 incidents • 2,185 Contractors evaluated for safety performance in FY23 LTIFR T
Slide 10: Environmental Performance
Environmental Performance Specific Energy Consumption (Gcal/tonne) GHG Emission Intensity (tCO2/tcs) Specific Freshwater Consumption (m3/tcs) 6.59 2.75 6.56 4.13 6.38 3.79 6.24 2.59 6.04 2.52 2.49 2.50 2.60 2.41 2.45 2.45 5.66 2.36 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY1
Slide 11: Our Commitment to Society
Our Commitment to Society Improving Cancer Care Key Intervention Areas JSW Foundation has provided support to Tata Memorial Centre for the development of residential facilities for Health & cancer patients Agriculture Nutrition Water, Environment & Education Sanitation JSW School of Public Policy, I
Slide 12: Our Commitment to Society
Our Commitment to Society Margondanahalli Lake Rejuvenation, Bangalore Progress of Skill Impact Bond Project Pre-restoration Post-monsoon 100k M3 10 Focus area Sectors 50,000 1 Lakh CubM Additional Water Storage Floating Wetlands Developed Job retention especially F&B, Retail, IT/ITES, Learners to b
Slide 13: Initiatives & Recognitions
Initiatives & Recognitions Diversity and Women Empowerment Recognitions JSW Steel recognized as Sustainability Champion by worldsteel for 2023 for the 5th consecutive year JSW Steel has been recognized as a Supplier Engagement Women are operating Heavy Earth Moving Leader by CDP for Machinery such a
Slide 14: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q4 FY23 Results Presentation 13
Slide 15: Global Economy
Global Economy GDP Growth Forecasts (%YoY) • IMF expects global GDP growth to decelerate by 0.6 p.p. in 2023 vs CY23F (Jan 23) CY23F (April 23) CY24F (April 23) 2022. Goods and commodity inflation has cooled significantly but services inflation in DMs remains elevated. While central banks have 6.3%
Slide 16: Global Steel
Global Steel Crude Steel Production – Jan-Mar (mt) Steel Demand (mt) China Steel Production and Export (mt) Jan-Mar CY21 Jan-Mar CY22 Jan-Mar CY23 CY22 CY23F (Oct 22) CY23F (Apr 23) CY24F (Apr 23) China Crude Steel Production (LHS) 150 10 -0.1% +2.3% Exports (RHS) 8 100 459 +6.1% 6 1,854 1,822 1,815
Slide 17: Indian Economy
Indian Economy PMI – Manufacturing & Services GST Collection (₹ Lakh Cr) 65 PMI Manufacturing PMI Services • Indian economy remains resilient, supported by manufacturing, 2.1 1.9 services and govt. capex. Cooling inflation and RBI pause are 60 1.7 positives, while global slowdown remains a risk. Mon
Slide 18: Indian Steel – Annual Trend
Indian Steel – Annual Trend Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) FY22 FY23 Finished Semis Finished Semis +5.0% +13.3% 18.37 -54.6% +45.2% 4.88 120.29 126.26 119.86 105.75 7.02 8.34 4.84 1.00 13.49 1.62 0.17 4.67 6.02 6.72 Crude Steel Production Apparent Steel Consump
Slide 19: Indian Steel – Quarterly Trend
Indian Steel – Quarterly Trend Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q4 FY22 Q4 FY23 Finished Semis Finished Semis +3.0% +12.8% 3.89 YoY Trend 32.22 33.18 32.72 -39.9% 29.01 0.72 +58.9% 2.00 2.33 0.38 0.36 1.26 3.17 0.05 1.98 1.21 1.62 Crude Steel Production Apparent
Slide 20: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q4 FY23 Results Presentation 19
Slide 21: Quarterly Volumes – Standalone
Quarterly Volumes – Standalone Crude Steel Production Steel Sales +12% +11% YoY +5% YoY QoQ +15% QoQ 5.60 5.68 5.32 5.11 5.01 4.95 Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 Flat 3.79 3.70 4.40 Flat 3.76 3.89 4.23 Long 1.20 1.14 1.17 Long 1.15 1.1
Slide 22: Annual Volumes – Standalone
Annual Volumes – Standalone Crude Steel Production Steel Sales +18% +19% YoY YoY 20.87 19.67 17.62 16.52 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 Flat 12.63 15.30 Flat 12.06 14.74 Long 4.03 4.52 Long 3.87 4.36 Semis 0.58 0.57 JSW Steel Q4 FY23 Results Presentation All figures in million tonnes 21
Slide 23: Q4 FY23 Volumes – Consolidated India Operations
Q4 FY23 Volumes – Consolidated India Operations Crude Steel Production Total Sales Share of VASP Domestic Sales Export Domestic VASP Other OEM/Industrial Retail Auto 6.37mt Total Domestic Sales: 5.42mt Q4 6.35mt Q4 FY23 49% 38% 13% 85% 60% FY23 +5% +12% 15% +8% QoQ YoY QoQ YoY 5.16mt Q3 5.55mt Q3 6.
Slide 24: FY23 Volumes – Consolidated India Operations
FY23 Volumes – Consolidated India Operations Crude Steel Production Total Sales Share of VASP Domestic Sales Export Domestic VASP Other OEM/Industrial Retail Auto 23.62mt 21.86mt Total Domestic Sales: 19.10mt FY23 57% FY23 47% 39% 14% 87% +24% +25% YoY YoY 12.66mt FY22* 18.93mt 17.69mt FY22* 50% 35%
Slide 25: Retail Segment and Branded Stores Highlights
Retail Segment and Branded Stores Highlights Retail Sales (in kt) Branded Stores (number of outlets) +15% 1,695 YoY 7,456 221 new +4% branded stores 394 added in new QoQ 2,058 1,980 towns and 173 1,791 in existing towns 4,377 4,518 1,032 1,178 1,232 322 1,068 663 2,403 72 1,301 2,938 591 710 723 802
Slide 26: Q4 & FY23 Production & Sales Summary
Q4 & FY23 Production & Sales Summary In million metric tonnes Crude Steel Crude Steel Particulars Sales Sales Production Production Q4 FY23 Q4 FY22 Consolidated India Operations 6.37 6.35 5.71 5.90 JSW Steel USA – Ohio 0.21 0.18 0.10 0.08 JSW Steel Consolidated Operations 6.58 6.53 5.81 5.98 Joint C
Slide 27: Grades/Products Approved in Q4 FY23
14 Grades/Products Approved in Q4 FY23 Color Coated (PPGI) for Home Appliances Cold Rolled Non Grain-Oriented (CRNO) Electrical Steel for Motors New grade with lower thickness approved for refrigerator cabinet Lamination steel for Hydro Generator Compressor Motor Fan motor Electric motors Royal purp
Slide 28: Grades/Products Approved in Q4 FY23
14 Grades/Products Approved in Q4 FY23 Special Alloy Steel Grade for Defense, Auto OEMs, Forging & Machining Applications Hot Rolled - Weather Resistant Corten Steel for Cargo Containers Cargo Container (Automotive) Connecting Rod Axle Shaft Hot Rolled - High Strength Structural Steel for Illuminati
Slide 29: Contributing to India's High Speed Rail Journey
Contributing to India’s High Speed Rail Journey Supplying Steel to Mumbai Ahmedabad Bullet Train Project • Mumbai–Ahmedabad High Speed Rail (MAHSR) Corridor is the first of the twelve lines planned by the government. It will cover more than 500 km in 2 hours and 58 minutes with a maximum speed of 32
Slide 30: Brand Initiatives and Customer Engagement
Brand Initiatives and Customer Engagement JSW Experience Centre Purpose Led A state-of-the-art facility with immersive and interactive experience to showcase products and capabilities to MSMEs and Retail buyers Distributors’ Outlets are being upgraded to Experience Centres Two new Experience Centres
Slide 31: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q4 FY23 Results Presentation 30
Slide 32: Financials – Standalone
Financials – Standalone ₹ crore Particulars Q4 FY23 Q4 FY22 Q3 FY23 FY23 FY22 Revenue from Operations 37,153 36,011 30,935 1,31,687 1,18,820 Operating EBITDA 6,247 6,907 4,030 15,371 31,868 Other Income 552 416 315 1,572 1,929 Finance Cost 1,556 1,317 1,344 5,023 3,849 Depreciation 1,305 1,225 1,263
Slide 33: Operating EBITDA Movement Q4 FY23 – Standalone
Operating EBITDA Movement Q4 FY23 – Standalone ₹ crore 277 6,247 1,337 602 4,030 EBITDA - Q3 FY23 Volume NSR Cost EBITDA - Q4 FY23 JSW Steel Q4 FY23 Results Presentation 32
Slide 34: Operating EBITDA Movement FY23 – Standalone
Operating EBITDA Movement FY23 – Standalone ₹ crore 6,084 31,868 7,081 15,371 15,500 EBITDA FY22 Volume NSR Cost EBITDA FY23 JSW Steel Q4 FY23 Results Presentation 33
Slide 35: JSW Steel Coated Products (Consolidated)
JSW Steel Coated Products (Consolidated) Million tonnes Volumes Q4 FY23 Q4 FY22 Q3 FY23 FY23 FY22 Production (GI/GL + Tin) 0.84 0.79 0.73 2.93 2.93 Sales 1.02 0.94 0.84 3.33 3.22 ₹ crore Key P&L data Q4 FY23 Q4 FY22 Q3 FY23 FY23 FY22 Revenue from 8,479 8,935 6,679 28,772 31,775 Operations Operating
Slide 36: Bhushan Power and Steel Ltd (BPSL)
Bhushan Power and Steel Ltd (BPSL) Million tonnes Volumes Q4 FY23 Q4 FY22 Q3 FY23 FY23 FY22 Crude Steel 0.78 0.71 0.74 2.76 1.34 Production Steel Sales 0.71 0.78 0.68 2.51 1.36 ₹ crore Key P&L data Q4 FY23 Q4 FY22 Q3 FY23 FY23 FY22 Revenue from 5,570 6,125 4,998 20,077 11,208 Operations Operating EB
Slide 37: Operational Performance – Ohio, USA
Operational Performance – Ohio, USA Net tonnes Operational Q4 FY23 Q4 FY22 Q3 FY23 FY23 FY22 Production - Crude Steel 2,31,908 1,06,884 91,962 5,88,976 6,05,657 Sales - Slab 1,25,124 12,788 44,784 2,99,272 2,13,175 Sales - HRC 72,776 74,185 43,936 2,77,939 3,18,493 US$ mn Key P&L data Q4 FY23 Q4 FY2
Slide 38: Operational Performance – US Plate & Pipe Mill
Operational Performance – US Plate & Pipe Mill Net tonnes Production Q4 FY23 Q4 FY22 Q3 FY23 FY23 FY22 Plate Mill 1,04,438 63,494 80,753 3,49,575 2,92,037 Pipe Mill 6,606 1,008 8,489 24,722 12,845 Net tonnes Sales Q4 FY23 Q4 FY22 Q3 FY23 FY23 FY22 Plate Mill 86,823 68,969 74,030 3,17,307 2,66,575 Pi
Slide 39: Operational Performance – Piombino, Italy
Operational Performance – Piombino, Italy tonnes Production Q4 FY23 Q4 FY22 Q3 FY23 FY23 FY22 Rolled Products (Bars, Wire 67,210 94,007 68,359 2,80,354 3,19,316 Rod & Rails) Grinding Balls 11,174 15,856 9,816 48,409 49,465 tonnes Sales Q4 FY23 Q4 FY22 Q3 FY23 FY23 FY22 Rolled Products (Bars, Wire 85
Slide 40: Joint Controlled Entity: JSW Ispat Special Products
Joint Controlled Entity: JSW Ispat Special Products Million tonnes Key Metrics Q4 FY23 Q4 FY22 Q3 FY23 FY23 FY22 Crude Steel Production (mt) 0.18 0.17 0.10 0.42 0.58 Steel Sales (mt) 0.17 0.17 0.08 0.41 0.58 ₹ crore Key P&L data Q4 FY23 Q4 FY22 Q3 FY23 FY23 FY22 Revenue from Operations 1,649 1,688 1
Slide 41: Financials – Consolidated
Financials – Consolidated ₹ crore Particulars Q4 FY23 Q4 FY22 Q3 FY23 FY23 FY22 Revenue from operations 46,962 46,895 39,134 1,65,960 1,46,371 Operating EBITDA 7,939 9,184 4,547 18,547 39,007 Other Income 465 233 188 1,030 1,531 Finance Cost 2,138 1,756 1,819 6,902 4,968 Depreciation 2,009 1,815 1,8
Slide 42: Q4 FY23 Results – Drivers of Performance (Standalone)
Q4 FY23 Results – Drivers of Performance (Standalone) • Operated at 97% capacity utilization for the standalone operations in Q4 FY23 vs 93% in Q3 FY23 Volumes • Sales volumes grew 11% YoY and 15% QoQ driven by higher domestic sales and recovery in exports after export duty was removed in November 2
Slide 43: Net Debt Movement – Consolidated
Net Debt Movement – Consolidated 69,498 3,960 ₹ crore ₹ crore 59,345 4,313 257 9,543 Net Debt Dec'22 New Loan Taken Repayments Forex Impact Movement in Cash & Net Debt Mar'23 Bank Bal. Particulars 31.03.2023 31.12.2022 31.03.2022 Net Debt (₹ Cr) 59,345 69,498 56,650 Cash & cash equivalent (₹ Cr) 20,
Slide 44: 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 1.38x 1.48x 1.34x 3.75x 1.17x Bonds and 2.60x 2.61x 3.20x 0.83x 0.89x 2.40x Foreign INR debt, debentures, 1.45x currency
Slide 45: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q4 FY23 Results Presentation 44
Slide 46: Annual India Capex Update
Annual India Capex Update 18,800 18,500 ₹ crore Actual Spent 14,214 14,625 FY23 FY24 FY25 FY26 Particulars ₹ Cr Unspent Capex including Creditors and Acceptances 34,629 New Growth, Cost Savings and Mining Projects 12,499 Sustenance Capex 4,797 Total 51,925 JSW Steel Q4 FY23 Results Presentation 45
Slide 47: Key Project Updates - Vijayanagar
Key Project Updates - Vijayanagar 5mtpa brownfield project • Construction activities for all packages underway • Piping & Electricals commenced for all packages • Equipment erection commenced for all packages • Project to be completed by end of FY24 Coke Oven Plant • 1.5 mtpa Coke Oven battery: Batt
Slide 48: Key Project Updates – BPSL & Other Downstream
Key Project Updates – BPSL & Other Downstream Phase-II expansion from 3.5 to 5 MTPA • Civil work & Structural Erection work in progress in New Wire Rod Mill-2 and SMS-2 Project • Long lead-time items received at site, equipment erection started (New Wire Rod Mill-2 and SMS-2, PCI upgradation for BF-
Slide 49: Creating Shareholder Value: Strategic Priorities for FY24
Strategic Priorities for FY24 Committed to sustainability targets, with sustainability at the core of everything Creating Shareholder Value Executing growth pipeline of 37mt steel making capacity in India End-to End Digitalisation by evolving from point projects to transformational projects Maintain
Slide 50: FY24 Guidance
FY24 Guidance All fig. in million metric tonnes FY24 Crude Steel Particulars Sales Production India Operations incl. Joint Control 25.50 24.20 JSW Steel USA Ohio 0.84 0.80 Total Combined Volumes 26.34 25.00 JSW Steel Q4 FY23 Results Presentation 49
Slide 51: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q4 FY23 Results Presentation 50
Slide 52: 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 Strategic Democratize – Manufacturing & Mining (O&M, Quality) Transformation Value Lens Digitalization – Sustainability, Safety and Securit
Slide 53: JSW Steel's Digital Focus Areas
JSW Steel’s Digital Focus Areas Increased Sales Additional Focus s Mining Supply Safety, Security, Governance Cost Optimization Chain Anticipated Impact Sustainability led R&D Asset Availability Primary Finance Focus Manufacturing Cultural Transformation Emissions Reduction s Integrated Control Towe
Slide 54: Mine-to-Customer: Technology-Led JSW Steel
Mine-to-Customer: Technology-Led JSW Steel DIGITAL BULK RAW MATERIAL (BRM) MGMT DIGITAL MANUFACTURING DIGITAL OUTBOUND SUPPLY CHAIN DIGITAL SALES & MARKETING 3 Digital Plant Data-Driven Decision-Making 1 4 6 Suppliers Outbound / Mines In-Plant Connected Digital Digital Sales & Marketing Logistics Wo
Slide 55: Future-Ready Digital Workforce
Future-Ready Digital Workforce Technology Learning Strategy Self-Paced Learning High Level Awareness In-depth Training Personalized Training Program Level Tier 0 Tier 1 Tier 2.1, 2.2, 2.3 Tier 3 • Self Learning in LMS / • Introduction to • Microsoft Azure • Role-based Certifications Digital Central
Slide 56: Our Steel is Helping Build Key Infrastructure in India
Our Steel is Helping Build Key Infrastructure in India Solar Project: Contributed 2.3 GW Wind Project: Contributed 1.4 GW Metro Projects: 57 km of Metro project lines High Speed Rail (Mumbai-Ahmedabad Bullet (Mumbai, Pune, Nagpur, Bengaluru, Train) Project Ahmedabad, Chennai, Indore, Kochi & Delhi)
Slide 57: Thank You
THANK YOU Investor Relations Contact: ir.jswsteel@jsw.in