Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q3 FY2025 Earnings Presentation
50 slides from Jsw Steel's earnings presentation, Jan 24, 2025
Slide 1: Exchange filing cover letter
Ref: JSWSL: SEC: MUM: SE: 2024-25 January 24, 2025 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
Slide 2: Q3 FY25 Results Presentation
Q3 FY25 Results Presentation 24 January 2025 1
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 Sustainability Business Operational Financial Environment Performance Performance Project Digitalisation at Strategy Appendix Updates JSW Steel JSW Steel Q3 FY25 Results Presentation / 3
Slide 5: Key Highlights – Q3 FY25
Key Highlights – Q3 FY25 • Revenue from Operations: ₹41,378 crore in Q3 • Operating EBITDA: ₹5,579 crore in Q3 Financial • Net Profit: ₹719 crore in Q3 Performance • Net Debt1 to Equity: 1.00x and Net Debt1 to EBITDA2: 3.57x • Average India capacity utilization of 91% in Q3 • Highest ever consolidat
Slide 6: Sustainability
Sustainability Business Operational Financial Digitalisation Sustainability Project Updates Strategy Appendix Environment Performance Performance at JSW Steel
Slide 7: Sustainability at JSW Steel
Sustainability at JSW Steel Governance & Oversight by Board-level Business Responsibility & Sustainability Committee Climate Change Energy Our Resources Indigenous People Cultural Heritage Business Ethics Water Resources Focus Waste Employee Wellbeing Local Considerations Human Rights Supply Chain W
Slide 8: Environment: Our Targets & Commitments
Environment: Our Targets & Commitments Circularity & Climate Change Water Security Energy Transition Air Emissions Biodiversity • Targeting Net Neutrality • Maintaining zero liquid • Transition from • PM, SOx and NOx • Promoting Circular in carbon emissions by discharge thermal to renewables emissio
Slide 9: Building a Strong Health & Safety Culture
Building a Strong Health & Safety Culture Effective Leadership Competent Workforce • Safety Culture Survey conducted at Vijayanagar • Felt Leadership program at BPSL, 56 and Dolvi for ~37,000 regular & contract workers individuals trained by DSS+ Consulting in Q3 FY25 (formerly DuPont) o Conducted i
Slide 10: Targeting Net Neutral by 2050: Decarbonization Agenda
Targeting Net Neutral by 2050: Decarbonization Agenda Phase-I Two Phases, Two Milestones Phase-II Progress Update 2030 2050 • Energy Transition: 2.5GW RE and 320MWh Battery 1.95tCO2/tcs Net Neutral in Storage approved; 485MW currently operational and 42% from base year Carbon emissions reaching 875M
Slide 11: Our Commitment to Society: Benefitting over 2.5mn Lives Annually
Our Commitment to Society: Benefitting over 2.5mn Lives Annually Education Health Skill Development Art, Culture & Heritage Education 19,73,500 18,15,000 46,000 10 Students Benefitted Health Consultations Individuals Trained Projects Supported Sports Water, Environment & Agriculture Waste Management
Slide 12: Sustainability Initiatives & Recognitions
Sustainability Initiatives & Recognitions Towards Clean Mobility Leadership in ESG Greener Employee Commutes • 50% of employee commute JSW Steel ranks among the top 2 global steel- buses converted to EV at makers in Dow Jones Sustainability Index by S&P Vijayanagar, Dolvi and Salem Global Corporate
Slide 13: 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 6.04 2.44 2.39 2.36 2.45 2.45 2.41 2.39 5.66 5.68 2.36 5.54 FY20 FY21 FY22 FY23 FY24 9MFY25 FY20 FY21 FY22 FY23 FY24 9MFY25 FY20 F
Slide 14: Business Environment
Business Environment Sustainability Business Operational Financial Digitalisation Project Updates Strategy Appendix Environment Performance Performance at JSW Steel
Slide 15: Global Economy
Global Economy GDP Growth Forecasts (%YoY) • Global economic projections for 2025 suggest growth resilience and CY24F (Jan 25) CY25F (Oct 24) CY25F (Jan 25) moderation of inflation. However, geopolitical tensions and possible tariff actions need to be watched. 6.5% 6.5% 6.5% 4.8% 4.6% 4.5% 4.2% 4.2%
Slide 16: Global Steel
Global Steel Crude Steel Production – Jan-Nov (mt) Finished Steel Demand1 (mt) China Steel Production and Export (mt) Jan-Nov CY22 Jan-Nov CY23 Jan-Nov CY24 CY23 CY24F (Dec 24) CY25F (Dec 24) 150 China Crude Steel Production (LHS) 12 -1.4% +0.4% Exports (RHS) 10 100 8 -2.7% 1,811 +1.3% 1,791 1,784 1
Slide 17: Indian Economy
Indian Economy PMI – Manufacturing & Services E-way Bills (mn) PMI Manufacturing PMI Services 350 E-way bills (mn) • Advance estimate pegs GDP growth at 6.4% in FY25, implying 65 recovery in H2 to 6.7% from 6% in H1 60 300 55 250 • Back-ended Central government capex in FY25, down 12% in Apr-Nov, ex
Slide 18: Indian Steel
Indian Steel Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q3 FY24 Q2 FY25 Q3 FY25 Finished Semis 9M FY25 Finished Semis 9M FY25 +6.8% +16.7% -16.5% +3.5% 3.15 3.18 YoY YoY 0.39 2.83 36.49 36.69 37.78 36.00 37.22 38.46 0.43 0.14 -10.8% +44.0% QoQ QoQ 1.82 1.37 1.27 0.53 2.72
Slide 19: Operational Performance
Operational Performance Business Operational Financial Digitalisation Sustainability Project Updates Strategy Appendix Environment Performance Performance at JSW Steel
Slide 20: Q3 FY25 Volumes – JSW Steel Consolidated
Q3 FY25 Volumes – JSW Steel Consolidated Crude Steel Production (mt) Steel Sales (mt) +2% 12% YoY YoY 10% +4% QoQ QoQ 1 6.87 7.03 6.77 6.71 2 2 6.00 6.13 Q3 FY24 Q2 FY25 Q3 FY25 Q3 FY24 Q2 FY25 Q3 FY25 million tonnes Q3 FY24 Q2 FY25 Q3 FY25 million tonnes Q3 FY24 Q2 FY25 Q3 FY25 Indian Operations 6.
Slide 21: Q3 FY25 Sales: JSW Steel Consolidated – Indian Operations
Q3 FY25 Sales: JSW Steel Consolidated – Indian Operations Domestic Sales by Customer Segment Value-Added and Special Products (mt) 5.27mt 5.57mt* +14% YoY % of Total 60% 60% 60% 5.99mt* Sales +8% QoQ 3.90 33% 34% 36% 3.49 3.59 Retail 14% 13% 12% Auto 16% 18% 17% Industrial 37% 34% 34% Construction &
Slide 22: Retail Segment & Branded Stores
Retail Segment & Branded Stores: JSW Steel Consolidated – Indian Operations Retail Sales (in kt) Branded Stores (number of outlets) +26% YoY 2,339 154 new +14% 280 branded stores QoQ added in new 2,168 1,600 towns and 126 1,717 1,907 in existing towns 241 1,152 974 1,029 739 2,059 39 1,359 934 1,016
Slide 23: Q3 FY25 Production & Sales
Q3 FY25 Production & Sales In million metric tonnes Particulars Crude Steel Production Sales Domestic sales up 14% Q3 FY25 Q3 FY24 YoY Q3 FY25 Q3 FY24 YoY YoY, while Exports remained flat YoY in Q3 Consolidated India Operations 6.821 6.63 3% 6.542 5.82 12% FY25 USA – Ohio Operations 0.21 0.24 -13% 0
Slide 24: Grades/Products Approved in Q3 FY25
25 Grades/Products Approved in Q3 FY25 Flanges (Oil & Gas Industry) Shipbuilding (SAE 4150 (M) – Long & Special Alloy) (IRS GRADE A – HR) Motor brush springs Differential Gear (C80 – HR) (25MoCr4 – Long & Special Alloy) Metro Bogie Frame & Underframe Spring Steel (S500MC – HR) (51CrV4 – Long & Speci
Slide 25: JSW One: Digital Marketplace for Manufacturing and Construction MSMEs
JSW One: One-stop Digital Marketplace for Manufacturing and Construction MSMEs JSW One YoY GMV INR 14,000+ cr • Offers industrial and building material products, logistics and credit growth 2.7x1 annualised GMV1 solution through its tech platform operating via 2 subsidiaries namely JSW One Distribut
Slide 26: JSW One: Customer traction and growth
JSW One: One-stop Digital Marketplace for Manufacturing and Construction MSMEs Customer traction and customer base Significant growth in Volumes & GMV Volumes Q3 FY25 Fintech GMV Q3 173,700+ Visits on platform in Q3 Steel Cement Credit 4,83,000 MT 59,000 MT ₹930 Cr 2,400+ Up 25% Up 33% Up 6% Transac
Slide 27: Financial Performance
Financial Performance Business Operational Financial Digitalisation Sustainability Project Updates Strategy Appendix Environment Performance Performance at JSW Steel
Slide 28: Financials – Consolidated
Financials – Consolidated ₹ crore Particulars Q3 FY25 Q3 FY24 Q2 FY25 FY24 Revenue from operations 41,378 41,940 39,684 1,75,006 Operating EBITDA 5,579 7,180 5,437 28,236 Other Income 147 194 153 1,004 Finance Cost 2,115 1,996 2,130 8,105 Depreciation 2,336 2,059 2,267 8,172 Share of Profit/ (Loss)
Slide 29: Q3 FY25 Consolidated Results – Drivers of Performance
Q3 FY25 Consolidated Results – Drivers of Performance • Consolidated crude steel production of 7.031 mt, up 2% YoY and 4% QoQ due to ramp up of new capacities at Volumes BPSL and at JVML, Vijayanagar; Capacity utilization of 91% at Indian operations • Total sales volumes at 6.712 mt, up 12% YoY & 10
Slide 30: Consolidated EBITDA Movement – Q3 FY25 vs. Q2 FY25
Consolidated EBITDA Movement – Q3 FY25 vs. Q2 FY25 ₹ crore ₹ crore 564 5,437 729 38 30 5,579 1,219 EBITDA Volume NSR Cost Overseas Consol Adj. EBITDA Q2 FY25 subsidiaries Q3 FY25 29 29 JSW Steel Q3 FY25 Results Presentation /
Slide 31: Financials – Indian Operations
Financials – Indian Operations ₹ crore JSW Steel – Indian Operations Q3 FY25 Q3 FY24 Q2 FY25 FY24 Crude Steel Production (mt) 6.821 6.63 6.63 25.55 Steel Sales (mt) 6.542 5.82 5.962 23.96 Revenue from Operations 39,440 39,715 37,496 1,63,409 Operating EBITDA 5,564 6,923 5,491 27,007 Profit/(Loss) af
Slide 32: Consolidated Net Debt Movement
Consolidated Net Debt Movement 82,805 3,687 80,921 ₹ crore 493 3,645 2,419 Net Debt New Repayments Forex Impact Movement Net Debt Sep'24 Loans Taken in Cash Dec'24 Particulars 31.12.2024 30.09.2024 31.12.2023 Net Debt (₹ Cr) 80,921 82,805 78,576 Cash & Cash Equivalents (₹ Cr) 11,969 9,550 12,061 Net
Slide 33: Debt Profile and Credit Ratings
Debt Profile and Credit Ratings Net Gearing (ND1/Equity) within Leverage (ND1/EBITDA) within the stated cap of 1.75x the stated cap of 3.75x Diversified Funding Sources 1.75x 3.75x 1.15x 3.13x 3.57x Bonds and 0.91x 1.00x 2.56x 0.77x 0.87x 2.58x Foreign INR debt, debentures, currency debt, 45% 33% 1.
Slide 34: Project Updates
Project Updates Business Operational Financial Project Digitalisation Sustainability Strategy Appendix Environment Performance Performance Updates at JSW Steel
Slide 35: Key Project Updates – Vijayanagar
Key Project Updates – Vijayanagar 5mtpa Expansion at JVML-Vijayanagar ramping up well • RMHS, Sinter Plant, BF commissioned • One SMS unit and Caster started operations in Q3; Second Caster also started in January 2025 • HSM commercial production and sales had commenced in March 2024 • Ramp-up under
Slide 36: Key Project Updates – BPSL, Dolvi & Others
Key Project Updates – BPSL, Dolvi & Others BPSL Phase-II Expansion from 3.5 to 4.5 MTPA • All major facilities commissioned, fully ramped-up by end of Q3 FY25 Dolvi Phase-III Expansion from 10 to 15 MTPA • Long lead-time items ordered, Letters of Credit established • Project to be completed by Sep’2
Slide 37: Digitalisation at JSW Steel
Digitalisation at JSW Steel Business Operational Financial Digitalisation Sustainability Project Updates Strategy Appendix Environment Performance Performance at JSW Steel
Slide 38: Digitalization at JSW Steel
Digitalization at JSW Steel Increased Sales Manufacturing Manufacturing Manufacturing Supply Supply Chain Chain ADDITIONAL FOCUS Cost Optimisation Safety, Security, ANTICIPATED IMPACT Governance Asset Availability Finance Primary Mining Mining Sustainability Finance Focus led R&D Emissions Reduction
Slide 39: Digital Transformation in Sales & Marketing
Digital Transformation in Sales & Marketing Key Initiatives in FY25 Driving Growth through AI-based Transforming Channel Digital Lead Enrichment Inventory Allocation Partner Operations • Automated digital engagement with • Accurate product suggestions improve sales • Developed a future-ready digital
Slide 40: Strategy
Strategy Sustainability Business Operational Financial Digitalisation Strategy Project Updates Appendix Environment Performance Performance at JSW Steel
Slide 41: 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 42: JSW Steel: Growth Path
JSW Steel: Growth Path India Capacity U.S. Capacity Vijayanagar JISPL Dolvi BPSL 35.7 43.5 51.5 2 1.5 8.0 50.0 0.5 1.5 2.0 5.0 42.0 1.5 0.3 Growth Options in the Portfolio 36.2 34.2 Organic • Brownfield growth potential of ~5mt at each of Vijayanagar and BPSL • 4mt brownfield Green Steel in 2 phases
Slide 43: Appendix
Appendix Sustainability Business Operational Financial Digitalisation Project Updates Strategy Appendix Environment Performance Performance at JSW Steel
Slide 44: Quarterly Volumes – Standalone
Quarterly Volumes – Standalone Crude Steel Production (mt) Steel Sales (mt) +7% 0% YoY YoY -1% +6% QoQ QoQ 5.72 5.77 5.70 5.59 5.20 5.30 Q3 FY24 Q2 FY25 Q3 FY25 Q3 FY24 Q2 FY25 Q3 FY25 JSW Steel Q3 FY25 Results Presentation / 43
Slide 45: Financials – Standalone
Financials – Standalone ₹ crore Particulars Q3 FY25 Q3 FY24 Q2 FY25 FY24 Revenue from Operations 31,799 33,310 30,778 1,35,180 Operating EBITDA 4,397 5,779 4,641 21,980 Other Income 452 386 439 1,704 Finance Cost 1,633 1,551 1,668 6,108 Depreciation 1,475 1,351 1,488 5,435 Exceptional Items (103) -
Slide 46: Financials – BPSL and JSW Steel Coated Products
Financials – BPSL and JSW Steel Coated Products BPSL Q3 FY25 Q3 FY24 Q2 FY25 FY24 Crude Steel Production (mt) 0.96 0.86 0.82 3.18 Steel Sales (mt) 0.88 0.70 0.74 2.96 Revenue from Operations (₹ crore) 5,340 5,030 4,900 21,893 Operating EBITDA (₹ crore) 541 780 431 2,765 Profit/(Loss) after Tax (₹ cr
Slide 47: Financials – US Operations
Financials – US Operations USA – Ohio Operations Q3 FY25 Q3 FY24 Q2 FY25 FY24 Production - Crude Steel (net tonnes) 2,31,872 2,67,666 1,56,137 9,62,697 Sales - Slab (net tonnes) 1,28,394 1,46,383 1,30,968 6,47,371 HRC (net tonnes) 63,817 56,355 59,148 2,58,492 Revenue from Operations (US$ mn) 123.62
Slide 48: Financials – Piombino, Italy
Financials – Piombino, Italy Piombino, Italy Q3 FY25 Q3 FY24 Q2 FY25 FY24 Production – Rolled Products (Bars, Wire Rod & Rails) (tonnes) 60,237 95,871 76,090 3,21,242 Grinding Balls (tonnes) 8,672 5,789 7,287 28,856 Sales – Rolled Products (Bars, Wire Rod & Rails) (tonnes) 55,084 76,651 70,743 3,00,
Slide 49: Net Debt Reconciliation
Net Debt Reconciliation ₹ crore Net Debt breakup Q3 FY25 Q3 FY24 Q2 FY25 FY24 Net Debt (Earlier Classification) 83,367 79,221 85,098 73,916 Less: Lease Liabilities 2,839 2,101 2,903 2,409 Less: APSA1 - 265 - - Add: Acceptances2 393 1,721 610 1,478 Net Debt (New Classification) 80,921 78,576 82,805 7
Slide 50: Thank You
THANK YOU Investor Relations Contact: ir.jswsteel@jsw.in JSW Steel Q3 FY25 Results Presentation / 49