Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q3 FY2018-19 Earnings Presentation
29 slides from Jsw Steel's earnings presentation, Feb 6, 2019
Slide 1: Exchange filing cover letter for Investor/Analyst Presentation
,JSK' Steel Limited Regd. Office : JSW Centre, Bo.ndra. Kurlo. Complox, Bandra (East), Mumbai - 400 051 GIN. : L27102MH1994PLC152925 Phone : +91 22 4286 1000 Fax : +91 22 4286 3000 Website : www.jsw.in JSWSL: SECT: MUM: SE: 2018-19 February 06, 2019 1. National Stock Exchange of India Ltd. 2. BSE Li
Slide 2: Q3 FY 2018-19 Results Presentation
JSW Steel Limited Q3 FY 2018-19 Results Presentation February 06, 2019 Better Everyday 1
Slide 3: Key highlights – Q3 FY19
Key highlights – Q3 FY19 Crude Steel production: 4.23 million tonnes, up by 3% YoY Saleable Steel Sales: 3.68 million tonnes Standalone performance Operating EBITDA: ₹ 4,438 crores, up by 24% YoY PAT: ₹ 1,892 crores, up by 68% YoY Net Debt to Equity: 1.24x and Net Debt to EBITDA: 2.16x S
Slide 4: Agenda
Agenda Business Operational Financial Projects and Environment Performance Performance Acquisitions Update 3
Slide 5: Global economy
Global economy GDP growth projections (%YoY) 2018 2019 IMF revises global GDP forecast for 2019 to 3.5% from 3.7% 7.5% 7.3% 6.6% US growth underpinned by tight labour markets, fiscal impulse 6.2% from tax cuts and Fed’s stance to complete balance sheet 4.6% 4.5% normalization based on economic a
Slide 6: Global steel
Global steel World Steel Production (mt) in CY 2017 and CY2018 China Steel Production and Export (mt) 87 100 China Crude Steel Production (LHS) Exports (RHS) 12.0 82 104 101 106 USA 105 80 10.0 India emerged as the India second largest 8.0 producer globally 928 60 Japan 871 6.0 China 40 ROW 4.0 20 2
Slide 7: Indian economy
Indian economy Industry (GVA) Growth and Gross Fixed Capital Formation (YoY) Continued strong momentum in government spending on Industry (GVA) Growth (YoY) Gross Fixed Capital Formation (YoY) infrastructure driving an increase in Gross Fixed Capital 14.4% formation 12.5% 10% 9.1% 7.1% 8.8% 8% 6.9
Slide 8: Indian steel
Indian steel Production and Imports (mt) Exports (mt) 1.5% Consumption (mt) 8.1% -39.5% 7.9% 3.57 1.95 2.10 26.41 26.80 0.19 0.82 23.86 0.17 2.16 22.07 0.63 1.78 1.91 2.75 1.53 Crude Steel Production Apparent Finished Steel Consumption 3Q 18 3Q 19 3Q 18 3Q 19 3Q FY18 3Q FY19 Finished Semis Finished
Slide 9: Agenda
Agenda Business Operational Financial Projects and Environment Performance Performance Acquisitions Update 8
Slide 10: Quarterly volumes- standalone
Quarterly volumes- standalone Crude Steel Production Steel Sales +3% +1% -7% -7% YoY QoQ YoY QoQ 4.11 4.23 4.18 3.97 3.96 3.68 Q3 FY18 Q3 FY19 Q2 FY19 Q3 FY18 Q3 FY19 Q2 FY19 Q3 FY18 Q3 FY19 Q2 FY19 Q3 FY18 Q3 FY19 Q2 FY19 Flat 2.81 2.90 2.96 Flat 2.80 2.61 2.87 Long 0.88 1.04 0.91 Long 0.90 0.89 0.
Slide 11: 9M FY2019 volumes-standalone
9M FY2019 volumes-standalone Crude Steel Production Steel Sales +5% 1% YoY YoY 12.52 11.40 11.46 11.96 9M FY18 9M FY19 9M FY18 9M FY19 9MFY18 9MFY19 9MFY18 9MFY19 Flat 8.46 8.73 Flat 8.20 8.21 Long 2.48 2.88 Long 2.51 2.66 Semis 0.69 0.60 All figures are in million tonnes 10
Slide 12: Quarterly sales highlights – consolidated
Quarterly sales highlights – consolidated -10% -7% YoY QoQ 4.03 3.62^ 3.91^ 30% 10% 17% 3.27* 42% 46% 45% 3.26* 2.84* 16% 17% 15% 27% 29% 24% 20% 20% 30% 56% 54% 54% 34% 34% 35% Q3 FY18 Q3 FY19 Q2 FY19 Q3 FY18 Q3 FY19 Q2 FY19 OE Retail Auto Exports VASP Special prodcuts Other products Domestic Sal
Slide 13: Retail segment highlights
Retail segment highlights +3% -6% YoY QoQ 433 440 398 465 460 513 Q3 FY18 Q3 FY19 Q2 FY19 Others Branded Products Overall retail sales grew by 3% YoY and Branded sales volume increased by 9% YoY JSW has footprint across 575 districts with over 9,500 exclusive and non-exclusive retail outlets E
Slide 14: Product/ Grade approved in Q3 FY19
Product/ Grade approved in Q3 FY19 450-XXXT(Electrical Steel) IS 15961(Galvalume) HS800(HR) Pole sheet material Bus Body Long Member SPFC590DP(CRCA) 35C300(Electrical Steel) SPRC440(CRCA) Fender Apron Support Lamination Tail Gate Striker 13
Slide 15: Agenda
Agenda Business Operational Financial Projects and Environment Performance Performance Acquisitions Update 14
Slide 16: Financials – standalone
Financials – standalone ` crore Particulars Q3 FY19 Q3 FY18 9M FY19 9M FY18 Revenue from operations 18,393 16,813 57,026 47,564 Operating EBITDA 4,438 3,573 14,062 8,698 Other Income 67 43 436 140 Finance Cost 957 892 2,752 2,718 Depreciation 855 769 2,532 2,273 Profit Before Tax 2,693 1,955 9,214 3
Slide 17: Operating EBITDA movement – standalone
Operating EBITDA movement – standalone ` crore 2,900 (1,771) 4,438 3,573 (264) EBITDA Volume NSR Cost EBITDA Q3 FY18 Q3 FY19 16
Slide 18: Operational performance – JSW Steel Coated Products
Operational performance – JSW Steel Coated Products Million tonnes Volumes Q3 FY19 Q3 FY18 9M FY19 9M FY18 Production 0.42 0.35 1.31 1.22 Sales 0.42 0.51 1.30 1.59 ` crore Key P&L data Q3 FY19 Q3 FY18 9M FY19 9M FY18 Revenue from Operations 2,964 3,088 9,140 9,690 Operating EBITDA 97 90 306 436 Prof
Slide 19: Operational performance – US Plate & Pipe Mill
Operational performance – US Plate & Pipe Mill Production (net tonnes) Q3 FY19 Q3 FY18 9M FY19 9M FY18 Plate Mill 91,183 59,623 252,201 177,428 Utilization (%) 38% 24% 36% 24% Pipe Mill 16,367 15,109 50,264 38,159 Utilization (%) 12% 11% 12% 9% Sales (net tonnes) Q3 FY19 Q3 FY18 9M FY19 9M FY18 Plat
Slide 20: Financials – consolidated
Financials – consolidated ` crore Particulars Q3 FY19 Q3 FY18 9M FY19 9M FY18 Revenue from operations 20,318 18,264 62,389 51,875 Operating EBITDA 4,501 3,851 14,512 9,504 Other Income 37 42 151 122 Finance Cost 1,021 923 2,871 2,818 Depreciation 1,078 852 2,957 2,522 Profit Before Tax 2,439 2,118 8
Slide 21: Net debt movement – consolidated
Net debt movement – consolidated ` crore 3,969 2,018 771 68 46,030 44,919 Net Debt* New Loan Taken Repayments Fx Impact Movement in Cash Net Debt* as on Sep'18 & Cash Equivalents as on Dec'18 Particulars 31.12.2018 30.09.2018 31.03.2018 Net Debt (crore) 46,030 44,919 38,019 Cash & cash equivalent (c
Slide 22: Q3 FY19 Results – Drivers of Performance
Q3 FY19 Results – Drivers of Performance Production volume increased by 3% YoY aided by higher utilisation at Vijayanagar and Dolvi Volumes Overall sales volume lower by 10% YoY mainly due to lower Exports Domestic sales volume increased by 15% YoY; sales to automotive segment increased 23% Yo
Slide 23: Agenda
Agenda Business Operational Financial Projects and Environment Performance Performance Acquisitions Update 22
Slide 24: Update on the recently acquired assets
Update on the recently acquired assets Facilities include a 1.5 MTPA Electric Arc Furnace (EAF), 2.80 MTPA continuous Slab caster and a 3.0 MTPA Hot Strip Mill (HSM) Commenced production from HSM, gradual ramp up expected during FY20 JSW Steel USA Ohio EAF and Slab Caster commenced operations
Slide 25: Project updates
Project updates Dolvi – 5 to 10mtpa expansion Doubling steel making capacity from 5mtpa to 10mtpa To enhance capacity of flat products portfolio Commissioning by March 2020 Vijayanagar CRM expansion CRM1 complex capacity expansion from 0.85mtpa to 1.80 mtpa Two CGL lines of 0.45mtpa each
Slide 26: Project updates
Project updates Pipe conveyor at Vijayanagar For environment friendly and low cost transportation of iron ore from mines to the plant Total length of 24km and capacity of 20 mtpa Commisioned in Q3, under trial run Tinplate mill at Tarapur To cater to the growing market of tinplate for packag
Slide 27: JSW Steel Branded Portfolio
JSW Steel Branded Portfolio 26
Slide 28: 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 29: Thank you
Thank you IJSW Sicel