Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Q3 FY2023 Earnings Presentation
36 slides from Jindal Steel's earnings presentation, Feb 6, 2023
Slide 1: Regulation 30 intimation letter to stock exchanges
February 6, 2023 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: Jindal Steel & Power Limited 3QFY23 Earnings Presentation
Jindal Steel & Power Limited 3QFY23 Earnings Presentation February 5, 2023
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 3
Slide 5: Company Snapshot
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives 3QFY23 Results
Slide 6: Mission, Vision, Values
MISSION Building Nations, Empowering Communities. VISION An ever-flourishing company focused on nation building, value creation and sustainable development. VALUES • Extreme Ownership • Better Than Before • Respect For People • Sustainability Jindal Steel & Power 5
Slide 7: 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 0.66x Expansion programme to Targeting Net Debt / EBITDA boost
Slide 8: Macro and Sectoral Update
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives 3QFY23 Results
Slide 9: World Economic Outlook
World Economic Outlook Global GDP Growth Rate (%) • Global central banks have -67% -21% -4% Macro and Sectoral Update increased policy rates to fight -51% -68% -38% 8.1 59% 8.7 inflation -41% 6.9 6.6 5.9 5.9 -74% 5.3 -100% • Ongoing Russia – Ukraine conflict 4.3 continues to pressurize global 2.9 3.
Slide 10: Global Steel Scenario
Global Steel Scenario World Steel Production China Steel Production Fig in Million Tonnes • Global crude steel Fig in Million Tonnes production is Macro and Sectoral Update expected to decline 6% YoY in CY22 driven by a 10% decline in World ex- 1829 1877 1881 1958 1840 929 995 1065 1033 1008 China p
Slide 11: India Steel Scenario
India Steel Scenario Indian Steel Production Indian Steel Consumption • Indian steel Fig in Million Tonnes 6% Fig in Million Tonnes production grew Macro and Sectoral Update 12% 3% YoY and 2% 80.9 85.9 83.3 QoQ during 3% 11% 74.4 3QFY23 2% 8% 1% 2% • Consumption during the quarter 28.4 28.3 28.6 29.
Slide 12: Key Steel and RM Prices Trend
Key Steel and RM Prices Trend India HRC vs Rebar Domestic Pellet prices - up 7% qoq • Rising COVID cases in Fig in `/tonnes Fig in `/tonnes China led to Macro and Sectoral Update weakness in steel 64025 prices in the 60900 beginning of 3QFY23 55440 57900 9650 55730 9990 • However, China 50516 reopen
Slide 13: Business Update
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives 3QFY23 Results
Slide 14: Growth Drivers
Growth Drivers Business Update Integrated Value Chain Focused Capacity Expansion Diversified Products & Customer Partnerships Strong Balance Sheet Jindal Steel & Power 13
Slide 15: Integrated Value Chain: World-class Assets
Integrated Value Chain World-class Assets Mining Iron Making Liquid Steel Finished Steel (10.42 MTPA) (9.60 MTPA) (6.65 MTPA) Business Update Iron-ore: Coal: Wire Rod Mill (WRM) 0.60 MTPA Direct Reduce Iron (DRI) 3.12 MTPA Steel Melting Shop (SMS) 9.60 MTPA Tensa 3.11 MTPA Utkal-C 3.37 MTPA Rail Mil
Slide 16: Strategically Located Operations
Integrated Value Chain Strategically Located Operations Global Capacity Business Update Indian Operations International Operations 10.6 MTPA Iron Ore 20.4 MTPA Non- Coking Coal 2.4 MTPA Coking Coal Jharkhand GLOBAL COAL ASSETS Chhattisgarh Patratu Locations Tensa Angul Barbil GLOBAL IRON ORE ASSETS
Slide 17: Focused Capacity Expansion: Scaling-up for Market Leadership
Focused Capacity Expansion Scaling-up for Market Leadership Capex Spend breakup Crude Steel Capacity Business Update (` in Crs) (in MTPA) 15.9 34% 12.9 9.6 8.6 6.3 Angul Phase II ~` 24,000 Cr 3.3 Angul Phase I 5.0 6.0 6.0 6.0 66% Raigarh 3.6 3.6 3.6 3.6 FY 21 FY 22 FY 24(P) FY 25(P) Margin Expansion
Slide 18: Doubling Capacity at Angul by FY25
Focused Capacity Expansion Doubling Capacity at Angul by FY25 EXPANSION PLANS TO BOOST VOLUMES & EARNINGS Angul Phase-II : Timeline FINISHED STEEL CAPACITY Business Update Expected FY22 FY23 FY24 FY25 COD Past (FY11) 25% BRM Angul Pellet Plant #1: 6MTPA 4QFY23 25% BSM 3.9 Margin RAIL MILL HSM Phase
Slide 19: Innovating to Meet Significant Unmet Needs of Customers
Diversified Products & Customer Partnerships Innovating to Meet ‘Significant Unmet Needs’ of Customers Initiatives Customer group Result Business Update Smart and innovative construction Construction industry Faster construction with solution including speed floor, cut & zero wastage bend rebars, we
Slide 20: Innovating to Meet Significant Unmet Needs of Customers
Diversified Products & Customer Partnerships Innovating to Meet ‘Significant Unmet Needs’ of Customers Initiatives Customer group Result Business Update Largest domestic supplier of quenched Yellow goods and Import substitution & tempered plates for applications that Construction equipment Value add
Slide 21: Delighting Customer through Seamless Experience
Diversified Products & Customer Partnerships Delighting Customer through Seamless Experience Retail transformation initiatives undertaken with a focus on end Business Update consumers and influencers ‘Mill to Market’ Digital push for improved service delivery and enhanced value creation Recognition
Slide 22: Contributing to Building the Nation
Diversified Products & Customer Partnerships Contributing to ‘Building the Nation’ Product development for critical and prestigious projects Business Update AIIMS Avantipura AIIMS Bilaspur, HP Chenab Bridge Kolkata Metro Pulwama, Kashmir High strength fabricated E410C high strength Head hardened rai
Slide 23: Enhancing Brand Equity and Consumer Connect
Diversified Products & Customer Partnerships Enhancing Brand Equity and Consumer Connect Platinum sponsorship of Indian Super Business Update League’s Odisha FC Reach 130 million viewers TVC campaign “Hamesha ke liye” showcases our high product quality Reach • 1.6 million views on Sponsors of Pro Ka
Slide 24: Strong Balance Sheet
Strong Balance Sheet Strengthening Fundamentals to Drive Sustainable Growth Business Update Consolidated Performance Net Debt (` in Crs) Net Debt/EBITDA (x) Debt/Equity (x) -82% -86% -76% 4.66 4.57 1.23 1.15 39,137 35,919 0.92 22,146 1.53 0.35 0.29 8,876 7,090 0.57 0.66 FY19 FY20 FY21 FY22 9MFY23 FY
Slide 25: Social Initiatives
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives 3QFY23 Results
Slide 26: Empowering Our Communities
Empowering Our Communities Social Initiatives HEALTH & NUTRITION EDUCATION SKILL EDUCATION RURAL INFRASTRUCTURE SOCIAL INCLUSION VATSALYA aims to reduce YASHASVI aims to educate on O.P. JINDAL COMMUNITY COLLEGES • Construction and renovation JINDAL PRAYAS CENTRE OF Infant Mortality Rate and professi
Slide 27: National Accolades and Recognitions
National Accolades and Recognitions Social Initiatives National CSR Award, by Best Social Impact Ministry of Corporate Affair, Award during COVID-19 GoI (announced in Aug’22) by World Sustainability Federation • CSR in Aspirational Districts/Difficult Terrains in Best Women Eastern India Empowerment
Slide 28: 3QFY23 Results
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives 3QFY23 Results
Slide 29: 3QFY23 Highlights - Consolidated
3QFY23 Highlights - Consolidated Net Debt 3QFY23 Result Gross revenue Adjusted EBITDA** PAT Net Debt to EBITDA 3QFY23 3QFY23 3QFY23 3QFY23 3QFY23 (LTM) ₹14,452 ₹2,296 ₹518 ₹7,090 0.66x Cr Cr Cr Cr 3QFY22– ₹14,152 Cr 3QFY22 - ₹3,305** Cr 3QFY22– ₹1,622 Cr 3QFY22 - ₹10,981 Cr 3QFY22– 0.63x ** Adjusted
Slide 30: 3QFY23 Highlights - Standalone
3QFY23 Highlights - Standalone Steel Production Steel Sales Gross revenue Adjusted EBITDA** PAT 3QFY23 Result 3QFY23 3QFY23 3QFY23 3QFY23 3QFY23 2.06 MT 1.90 MT ₹13,831 ₹2,163 -₹4512 Cr Cr Cr 3QFY22 – 1.96 3QFY22– 1.82 3QFY22– ₹13,581Cr 3QFY22 - ₹3,162 Cr** 3QFY22 - ₹1,714 Cr ** Adjusted for one-off
Slide 31: Net Debt and EBITDA bridge
Net Debt and EBITDA bridge Consolidated Net Debt Movement (QoQ) (` in Crs) 3QFY23 Result Standalone Adjusted EBITDA Movement (QoQ) (` in Crs) Jindal Steel & Power 30
Slide 32: 3QFY23 Highlights
3QFY23 Highlights Augmenting Captive Power Improving Productivity Green Initiative 3QFY23 Result JSP acquired 1,050 MW JSP Angul tapped highest MoU with Greenko for under construction ever 54 nos. of heats 1,000 MW carbon-free energy thermal power plant (13,201 MT) from single Potential reduction of
Slide 33: Financial Performance - Standalone
Financial Performance - Standalone 3QFY23 Result Rs Crore Quarterly performance YTD performance Particulars 3QFY23 2QFY23 3QFY22 9MFY23 9MFY22 Gross Revenue* 13,831 15,118 13,581 43,489 39,605 Net Revenue 11,832 13,107 11,955 37,788 35,601 Adjusted EBITDA** 2,163 1,426 3,162 6,413 12,110 Depreciatio
Slide 34: Financial Performance - Consolidated
Financial Performance - Consolidated 3QFY23 Result Rs Crore Quarterly performance YTD performance Particulars 3QFY23 2QFY23 3QFY22 9MFY23 9MFY22 Gross Revenue* 14,452 15,534 14,152 44,723 40,752 Net Revenue 12,452 13,521 12,525 39,019 36,746 Adjusted EBITDA** 2,296 1,519 3,305 6,767 12,343 Depreciat
Slide 35: Well-Positioned to Deliver Value
Well-Positioned to Deliver Value Stable demand outlook across our diverse product portfolio Summary Continuously innovating to meet emerging consumer needs with agility Accelerating our sustainability efforts to achieve carbon neutrality Strong balance sheet and disciplined capital allocation to del
Slide 36: Thank you
Thank you JINDAL STEEL & POWER
Jindal Steel & Power — Q3 FY2023 Earnings Presentation on 6ix