Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q2 FY25 Earnings Presentation
51 slides from Jsw Steel's earnings presentation, Oct 25, 2024
Slide 1: Exchange filing cover letter
Ref: JSWSL: SEC: Mum: 2024-25 October 25, 2024 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.500
Slide 2: Q2 FY25 Results Presentation
Q2 FY25 Results Presentation 25 October 2024 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 Q2 FY25 Results Presentation / 3
Slide 5: Key Highlights – Q2 FY25
Key Highlights – Q2 FY25 • Revenue from Operations: ₹39,684 crore in Q2 • Operating EBITDA: ₹5,437 crore in Q2 Consolidated • Net Profit: ₹404 crore in Q2 Performance • Net Debt to Equity: 1.04 x and Net Debt to EBITDA1: 3.51x • Average India capacity utilization of 91% in Q2 • Consolidated crude st
Slide 6: Sustainability
Sustainability Vijayanagar Steel Plant Sustainability Business Operational Financial Digitalisation 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 for ~18,000 • Subject Matter Expert training at plants regular & contract workers in H1 FY25 • Behavioral science based safety interventions • Conducted in-person with more than 70% a
Slide 10: Targeting Net Neutral by 2050: Decarbonization Agenda
Targeting Net Neutral by 2050: Decarbonization Agenda Phase-I Phase-II Progress So Far Two Phases, Two Milestones 2030 2050 • Energy Efficiency: More than 40% of total energy consumed sourced from waste gases and waste heat 1.95tCO2/tcs Net Neutral in • Process Efficiency: More than 250 projects und
Slide 11: Climate Action: Earth Care Awards
Climate Action: Earth Care Awards Taking Action for the Planet • Initiated by JSW with The Times of India in 2008 to recognise visionaries and innovators who are responding to the adversities of climate change • One of the leading awards in climate mitigation and adaptation • Comprehensive and rigor
Slide 12: Biodiversity: Committed to “No Net Loss”
Biodiversity: Committed to “No Net Loss” • Biodiversity Management Plan for all operating sites in place • “No Net Loss” assessment completed for Vijayanagar • Made significant positive impact in freshwater ecosystem • Removal of invasive species and offset development in Reserve Forest underway • C
Slide 13: 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 19,00,000 15,00,000 46,000 7 Students Benefitted Health Consultations Individuals Trained Projects Supported Water, Environment & Sports Agriculture Waste Management
Slide 14: 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 2.41 2.45 2.45 2.36 2.41 2.39 5.66 5.68 5.65 2.32 FY20 FY21 FY22 FY23 FY24 H1FY25 FY20 FY21 FY22 FY23 FY24 H1FY25 FY20 F
Slide 15: Business Environment
Business Environment Vijayanagar Steel Plant Sustainability Business Operational Financial Digitalisation Project Updates Strategy Appendix Environment Performance Performance at JSW Steel
Slide 16: Global Economy
Global Economy GDP Growth Forecasts (%YoY) CY24F (as of July 24) CY24F (Oct 24) CY25F (Oct 24) • Global growth holding steady with IMF projection at 3.2% in both 2024 and 2025. Slight weakening in global mfg. PMI, services PMI 7.0% 7.0% 6.5% more resilient. Continued disinflation has set rate cuts i
Slide 17: Global Steel
Global Steel Crude Steel Production – Jan-Sep (mt) Finished Steel Demand (mt) China Steel Production and Export (mt) Jan-Sep CY22 Jan-Sep CY23 Jan-Sep CY24 CY23 CY24F (as of Apr 24) CY24F (Oct 24) CY25F (Oct 24) 150 China Crude Steel Production (LHS) 12 -1.9% Exports (RHS) -0.9% 10 -3.6% 100 8 1,421
Slide 18: Indian Economy
Indian Economy PMI – Manufacturing & Services Mfg. Capacity Utilisation % (4 quarter MA) PMI Manufacturing PMI Services Avg. (FY16-20) • Moderation of govt. spending and weather effects posed 65 75.0 headwinds in H1; RBI maintained 7.2% growth for FY25 with 60 acceleration expected in H2 55 74.0 • P
Slide 19: Indian Steel
Indian Steel Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q2 FY24 Q1 FY25 Q2 FY25 Finished Semis Finished Semis +2.7% +11.6% 3.18 YoY YoY 0.39 -15.2% 37.09 2.23 +44.2% 35.29 36.53 36.23 35.61 2.20 QoQ QoQ 33.24 0.33 0.26 1.79 1.49 2.79 +42.6% 0.24 1.27 -29.3% 0.22 1.89 1.94
Slide 20: Operational Performance
Operational Performance Salem Steel Plant Business Operational Financial Digitalisation Sustainability Project Updates Strategy Appendix Environment Performance Performance at JSW Steel
Slide 21: Q2 FY25 Volumes – JSW Steel Consolidated
Q2 FY25 Volumes – JSW Steel Consolidated Crude Steel Production Steel Sales +7% -3% YoY YoY 0% +7% QoQ QoQ Domestic sales up 6.77 5% QoQ while 6.34 6.35 Exports down 6.34 6.13 * 6.12 sharply Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 Indian Operat
Slide 22: Q2 FY25 Sales: JSW Steel – Indian Operations
Q2 FY25 Sales: JSW Steel – Indian Operations Domestic Sales by Customer Segment Value-Added and Special Products 5.49mt 5.31mt +1% YoY % of Total 62% 64% 60% 5.57mt* +5% QoQ Sales 3.81 3.81 36% 34% 3.59 40% Retail 13% 13% Auto 13% 18% 18% 15% Industrial 32% 33% 34% Construction & Infra Q2 FY24 Q1 FY
Slide 23: Retail Segment & Branded Stores: JSW Steel Consolidated – Indian Operations
Retail Segment & Branded Stores: JSW Steel Consolidated – Indian Operations Retail Sales (in kt) Branded Stores (number of outlets) -14% YoY 2,244 102 new +1% branded stores 185 QoQ added in new 2,210 towns and 83 in 1,896 1,907 1,511 existing towns 152 1,233 970 974 733 2,059 33 1,359 978 926 934 7
Slide 24: Q2 FY25 Production & Sales
Q2 FY25 Production & Sales In million metric tonnes Particulars Crude Steel Production Sales Q2 FY25 Q2 FY24 YoY Q2 FY25 Q2 FY24 YoY Domestic sales up 1% YoY, while Exports fell Consolidated India Operations 6.63 6.20 7% 5.96* 6.18 -4% sharply in Q2 FY25 USA – Ohio Operations 0.14 0.14 3% 0.17 0.16
Slide 25: Grades/Products Approved in Q2 FY25
26 Grades/Products Approved in Q2 FY25 Cold Rolled Steel for Automotive, Coated Steel for Consumer Durables and Hot Rolled Steel for General Engineering Applications Automotive Tubes Transmission Gear & Shaft (SAE1026 – CR) (SAE_8620H – Long & Special Alloy) Inner Body Side for PVs (BUSD-FB-D – CR)
Slide 26: Branding and Customer Engagement Initiatives
Branding and Customer Engagement Initiatives JSW Steel – Autocar Magazine Video Series • Four-episode video series explores the role of steel in revolutionising automotive design and innovation • Launched across YouTube & social media channels of JSW Steel & Autocar • Garnered 16mn+ views across cha
Slide 27: JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions
JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions JSW One Partner Online Shop • One of India’s leading integrated B2B commerce platforms catering Ecosystem to buying needs of MSMEs • Offers building material products, logistics and credit solution Ledger Product visibility search •
Slide 28: JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions
JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions Strong customer traction and stellar customer base Significant growth in Volumes & GMV Volumes Q2 FY25 67,600 Registered customers Steel Cement 6,400 3,86,000 MT 44,000 MT Transacted customers base Up 2.4x Up 2.7x YoY YoY 1,76,000 Vi
Slide 29: Financial Performance
Financial Performance Salem Steel Plant Business Operational Financial Digitalisation Sustainability Project Updates Strategy Appendix Environment Performance Performance at JSW Steel
Slide 30: Financials – Consolidated
Financials – Consolidated ₹ crore Particulars Q2 FY25 Q2 FY24 Q1 FY25 FY24 Revenue from operations 39,684 44,584 42,943 1,75,006 Operating EBITDA 5,437 7,886 5,510 28,236 Other Income 153 237 164 1,004 Finance Cost 2,130 2,084 2,073 8,105 Depreciation 2,267 2,019 2,209 8,172 Share of Profit/ (Loss)
Slide 31: Q2 FY25 Consolidated Results – Drivers of Performance
Q2 FY25 Consolidated Results – Drivers of Performance • Consolidated crude steel production of 6.77mt, up 7% YoY and QoQ due to improved production Volumes at Dolvi and BPSL; Capacity utilization of 91% at Indian operations • Total sales volumes at 6.13mt*, down 3% YoY but flat QoQ mainly due to low
Slide 32: Consolidated EBITDA Movement – Q2 FY25 vs. Q1 FY25
Consolidated EBITDA Movement – Q2 FY25 vs. Q1 FY25 ₹ crore 5,510 22 1,882 5,437 125 23 1,830 EBITDA Volume NSR Cost Overseas Consol Adj. EBITDA Q1 FY25 subsidiaries Q2 FY25 31 JSW Steel Q2 FY25 Results Presentation / 31
Slide 33: Financials – Indian Operations
Financials – Indian Operations ₹ crore JSW Steel – Indian Operations Q2 FY25 Q2 FY24 Q1 FY25 FY24 Crude Steel Production (mt) 6.63 6.20 6.12 25.55 Steel Sales (mt) 5.96* 6.18 5.90 23.96 Revenue from Operations 37,496 41,791 40,537 1,63,409 Operating EBITDA 5,491 7,734 5,417 27,007 Profit/(Loss) afte
Slide 34: Consolidated Net Debt Movement
Consolidated Net Debt Movement ₹ crore 6,128 85,098 80,199 707 333 1,603 Net Debt New Repayments Forex Impact Movement Net Debt Jun'24 Loans Taken in Cash Sep'24 Particulars 30.09.2024 30.06.2024 30.09.2023 Net Debt (₹ Cr) 85,098 80,199 69,195 Cash & Cash Equivalents (₹ Cr) 9,550 9,217 11,101 Net De
Slide 35: 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 3.75x 1.17x 3.20x Bonds and 1.04x 2.61x 3.51x 0.83x 0.89x 0.93x 2.62x Foreign debentures, 1.45x currency debt, INR debt, 33% 54
Slide 36: Project Updates
Project Updates Steel House Administrative Building, Vijayanagar Steel Plant Sustainability Business Operational Financial Digitalisation Project Updates Strategy Appendix Environment Performance Performance at JSW Steel
Slide 37: Key Project Updates – Vijayanagar
Key Project Updates – Vijayanagar 5mtpa Expansion at JVML-Vijayanagar Under Commissioning • RMHS, Sinter Plant and BF commissioned • HSM commercial production and sales had commenced in March 2024 • SMS under commissioning • Ramp-up expected in Q4 FY25 5mtpa BF at JVML-Vijayanagar Other Projects at
Slide 38: Key Project Updates – BPSL, Dolvi & Others
Key Project Updates – BPSL, Dolvi & Others BPSL Phase-II Expansion from 3.5 to 4.5 MTPA • Major equipment and facilities commissioned • Gradual ramp-up to 4.5mtpa expected by end of Q3 FY25 • Balance 0.5mtpa capacity will be achieved through debottlenecking by FY27 Dolvi Phase-III Expansion from 10
Slide 39: Digitalisation at JSW Steel
Digitalisation at JSW Steel BF Control Room, Vijayanagar Steel Plant Sustainability Business Operational Financial Digitalisation Project Updates Strategy Appendix Environment Performance Performance at JSW Steel
Slide 40: 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 41: Digital Vision Platform for Enhanced Safety
Digital Vision Platform for Enhanced Safety AI-powered computer vision & automated insights by processing visual data feeds Highlights • Provides 24/7 real-time detection of safety violations with Computer Vison AI high accuracy • Enhanced situational awareness delivered through 15+ AI Automated & r
Slide 42: Strategy
Strategy Pipe Conveyor for Iron Ore, Vijayanagar Sustainability Business Operational Financial Digitalisation Project Updates Strategy Appendix Environment Performance Performance at JSW Steel
Slide 43: 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 44: 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 45: Appendix
Appendix Vijayanagar Steel Plant Sustainability Business Operational Financial Digitalisation Project Updates Strategy Appendix Environment Performance Performance at JSW Steel
Slide 46: Quarterly Volumes – Standalone
Quarterly Volumes – Standalone Crude Steel Production Steel Sales -2% +7% YoY YoY +9% +4% QoQ QoQ 5.77 5.40 5.30 5.41 5.30 5.09 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 All figures in million tonnes. Following the completion of JISPL merger with JSW Steel, volumes for JISPL have been included
Slide 47: Financials – Standalone
Financials – Standalone ₹ crore Particulars Q2 FY25 Q2 FY24 Q1 FY25 FY24 Revenue from Operations 30,778 33,738 32,654 1,35,180 Operating EBITDA 4,641 6,898 4,275 21,980 Other Income 439 429 396 1,704 Finance Cost 1,668 1,531 1,590 6,108 Depreciation 1,488 1,359 1,460 5,435 Exceptional Items (342) 20
Slide 48: Financials – BPSL and JSW Steel Coated Products
Financials – BPSL and JSW Steel Coated Products BPSL Q2 FY25 Q2 FY24 Q1 FY25 FY24 Crude Steel Production (mt) 0.82 0.77 0.78 3.18 Steel Sales (mt) 0.74 0.80 0.75 2.96 Revenue from Operations (₹ crore) 4,900 5,817 5,564 21,893 Operating EBITDA (₹ crore) 431 745 670 2,765 Profit/(Loss) after Tax (₹ cr
Slide 49: Financials – US Operations
Financials – US Operations USA – Ohio Operations Q2 FY25 Q2 FY24 Q1 FY25 FY24 Production - Crude Steel (net tonnes) 1,56,137 1,51,313 2,53,169 9,62,697 Sales - Slab (net tonnes) 1,30,968 1,16,091 1,90,534 6,47,371 HRC (net tonnes) 59,148 59,136 47,398 2,58,492 Revenue from Operations (US$ mn) 128.51
Slide 50: Financials – Piombino, Italy
Financials – Piombino, Italy Piombino, Italy Q2 FY25 Q2 FY24 Q1 FY25 FY24 Production – Rolled Products (Bars, Wire Rod & Rails) (tonnes) 76,090 61,520 66,580 3,21,242 Grinding Balls (tonnes) 7,287 3,212 10,477 28,856 Sales – Rolled Products (Bars, Wire Rod & Rails) (tonnes) 70,743 78,651 61,301 3,00
Slide 51: Thank You
THANK YOU Investor Relations Contact: ir.jswsteel@jsw.in JSW Steel Q2 FY25 Results Presentation / 50