Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q1 FY2024 Earnings Presentation
51 slides from Jsw Steel's earnings presentation, Jul 21, 2023
Slide 1: Exchange filing cover letter for analyst presentation
JSWSL: MUM: SEC: SE: 2023-24 July 21, 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
Slide 2: Q1 FY2024 Results Presentation
Q1 FY2024 Results Presentation 21 July 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: Agenda
Agenda Page Key Highlights and Strategy 4 Sustainability 8 Business Environment 15 Operational Performance 20 Financial Performance 30 Project Updates 36 Digitalisation at JSW Steel 40 Appendix 44 JSW Steel Q1 FY24 Results Presentation 3
Slide 5: Key Highlights and Strategy
Agenda Key Highlights and Strategy Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q1 FY24 Results Presentation 4
Slide 6: Key Highlights – Q1 FY24
Key Highlights – Q1 FY24 • Revenue from Operations: ₹42,213 crore • Operating EBITDA: ₹7,046 crore Consolidated • Net Profit: ₹2,428 crore Performance • Net Debt to Equity: 0.96x and Net Debt to EBITDA1: 3.14x • Consolidated crude steel production of 6.43mt in Q1 FY24, up 11% YoY • Average India cap
Slide 7: 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 8: Aligned to India's Growth Story
Aligned to India’s Growth Story Near-term growth to take JSW Steel India capacity to 37mt; potential to scale up to 50mt by end of decade Vijayanagar BPSL JISPL 28.2 37.0 50.0 13.0 0.3 2.0 1.5 Pathway to 50mtpa 1.5 5.0 5.0 1.2 3.5 Organic Growth Options • Brownfield growth potential of ~5mt at each
Slide 9: Sustainability
Agenda Key Highlights and Strategy Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q1 FY24 Results Presentation 8
Slide 10: 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 11: 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 12: Building a Strong Health & Safety Culture
Building a Strong Health & Safety Culture JSW Steel’s Vision 000 Zero Safety Initiatives & Recognitions Zero Zero major injury harm incidents Capability Building Initiatives • Establishing Centres of Excellence for Process LTIFR Safety Management across plant locations 0.43 • Competency Framework fo
Slide 13: Environmental Performance
Environmental Performance Specific Energy Consumption (Gcal/tonne) GHG Emission Intensity (tCO2/tcs) Specific Freshwater Consumption (m3/tcs) 6.56 2.60 6.38 2.52 2.49 2.50 2.44 2.36 6.04 2.45 2.45 2.44 5.70 2.41 5.66 FY20 FY21 FY22 FY23 Q1 FY24 FY20 FY21 FY22 FY23 Q1 FY24 FY20 FY21 FY22 FY23 Q1 FY24
Slide 14: Our Commitment to Society
Our Commitment to Society Water, Environment & Sanitation Key Intervention Areas JSW Foundation and Hindustan Unilever announced a new Health & Agriculture partnership to launch 10 new Nutrition Suvidha Centres in Mumbai Water, • To benefit 200,000 people Environment & Education annually through acc
Slide 15: Our Commitment to Society
Our Commitment to Society Art, Culture & Heritage Restored Mumbai’s iconic David Sassoon Library • Victorian Neogothic-style structure, originally built in 1867 • Situated in Kala Ghoda, in the UNESCO World Heritage Precinct of Mumbai • Restored in record 16 months in collaboration with Abha Narain
Slide 16: Business Environment
Agenda Key Highlights and Strategy Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q1 FY24 Results Presentation 15
Slide 17: Global Economy
Global Economy GDP Growth Forecasts (%YoY) • The World Bank has recently upgraded its 2023 growth forecast for CY23F (Jan 23) CY23F (June 23) CY24F (June 23) the global economy by 40bps vs. Jan’23 forecast. While subdued demand and tight monetary policy are weighing on activity, inflation 6.6% 6.3%
Slide 18: Global Steel
Global Steel Crude Steel Production – Jan-May (mt) Steel Demand (mt) China Steel Production and Export (mt) Jan-May CY21 Jan-May CY22 Jan-May CY23 CY22 CY23F (Oct 22) CY23F (Apr 23) CY24F (Apr 23) China Crude Steel Production (LHS) 150 10 -1.2% +2.3% Exports (RHS) 8 100 6 1,854 1,822 +1.6% 1,815 786
Slide 19: Indian Economy
Indian Economy PMI – Manufacturing & Services GST Collection (₹ Lakh Cr) 65 PMI Manufacturing PMI Services • Indian economy continues strong momentum driven by positive 2.1 1.9 business and consumer sentiments. Uneven monsoon could push 60 1.7 up inflation and delay easing in monetary policy. Weaker
Slide 20: Indian Steel
Indian Steel Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q1 FY23 Q4 FY23 Q1 FY24 Finished Semis Finished Semis +8.4% +10.2% QoQ Trend 2.00 2.88 34.04 33.63 YoY 32.76 YoY 30.30 0.38 1.58 -21.1% 2.34 2.33 -0.4% 31.03 0.69 QoQ QoQ 27.50 1.23 0.18 0.36 0.28 0.06 +28.6% -19.3% 1
Slide 21: Operational Performance
Agenda Key Highlights and Strategy Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q1 FY24 Results Presentation 20
Slide 22: Q1 FY24 Volumes – JSW Steel Consolidated
Q1 FY24 Volumes – JSW Steel Consolidated Crude Steel Production Steel Sales +11% +27% YoY -2% YoY -13% QoQ QoQ 6.58 6.43 5.77 6.53 5.71 4.49 Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 Flat 4.21 4.94 4.84 Indian Operations 4.33 6.35 5.47 USA - Ohio
Slide 23: Q1 FY24 Sales: Consolidated – Indian Operations
Q1 FY24 Sales: JSW Steel Consolidated – Indian Operations Customer Segments – Domestic Sales Value-Added and Special Products 3.45mt 5.42mt 4.65mt +35% YoY % of Total Sales: 57% 60% 61% 3.83 35% 38% 38% 3.32 Retail Auto 2.48 18% 13% 14% 14% 15% 16% Industrial 30% 35% 34% Construction & Infra Q1 FY23
Slide 24: Retail Segment & Branded Stores
Retail Segment & Branded Stores: JSW Steel Consolidated – Indian Operations Retail Sales (in kt) Branded Stores (number of outlets) +44% 1,803 YoY 68 new branded -14% 108 stores added in QoQ new towns and 2,060 40 in existing 1,761 1,122 towns 90 1,220 1,234 1,027 681 1,695 719 18 1,032 825 663 734
Slide 25: Q1 FY24 Production & Sales
Q1 FY24 Production & Sales In million metric tonnes Crude Steel Crude Steel Particulars Sales Sales Production Production Q1 FY24 Q1 FY23 Consolidated India Operations 6.19 5.47 5.62 4.33 USA – Ohio Operations 0.24 0.23 0.16 0.16 JSW Steel Consolidated Operations 6.43 5.71 5.77 4.49 JSW Ispat Specia
Slide 26: 14 Grades/Products Approved in Q1 FY24
14 Grades/Products Approved in Q1 FY24 Special Alloy Steel Grade for Auto OEMs, Renewable Energy Equipment and General Engineering Applications Galvanized Steel for Solar Energy Applications Rails for Solar Support Structure Wind Mill Motor Housing Forged Rings Color Coated (PPGI) for Home Appliance
Slide 27: 14 Grades/Products Approved in Q1 FY24
14 Grades/Products Approved in Q1 FY24 Hot Rolled & Cold Rolled Steel for General Engg. and Auto Applications Cold Rolled Non Grain-Oriented (CRNO) Electrical Steel for Rotary Applications Generator for Wind Mill Earth Moving Equipment Automotive: Long Members Propane Refrigerant Gas Cylinder Panel
Slide 28: JSW Magsure: Superior Zn-Mg-Al Alloy Coated Steel
JSW Magsure: Superior Zn-Mg-Al Alloy Coated Steel Solar Structures • JSW Steel has developed a new coated product for Solar applications, that offers up to 4x corrosion resistance than conventional Galvanised or Galvalume coated steel sheets • 1st company in India to produce Zn-Mg-Al Coated Steel •
Slide 29: Brand Initiatives and Customer Engagement
Brand Initiatives and Customer Engagement International Brand Recognition Purpose Led JSW Steel’s Always Around Campaign was JSW Steel’s Always Around shortlisted for the prestigious Cannes Lions Campaign won the prestigious 2023 awards under the “Film Craft” International Creative Award, category f
Slide 30: JSW One: One-Stop Digital Marketplace for MSMEs
JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions • JSW One is one of India’s leading integrated B2B Partner Online Shop technology platforms streamlining material procurement Ecosystem & servicing, logistics and credit financing for MSMEs • Technology venture with experienced and s
Slide 31: Financial Performance
Agenda Key Highlights and Strategy Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q1 FY24 Results Presentation 30
Slide 32: Financials – Consolidated
Financials – Consolidated ₹ crore Particulars Q1 FY24 Q1 FY23 Q4 FY23 FY23 Revenue from operations 42,213 38,086 46,962 1,65,960 Operating EBITDA 7,046 4,309 7,939 18,547 Other Income 331 189 465 1,030 Finance Cost 1,963 1,422 2,138 6,902 Depreciation 1,900 1,778 2,009 7,474 Share of Profit/ (Loss)
Slide 33: Q1 FY24 Consolidated Results – Drivers of Performance
Q1 FY24 Consolidated Results – Drivers of Performance • Capacity utilization of 92% at Indian operations vs. 96% in Q4 FY23, due to maintenance Volumes shutdowns • Total Sales volumes lower by 13% QoQ due to destocking; higher by 27% YoY • Net sales realization at Indian operations were higher by 1%
Slide 34: Consolidated EBITDA Movement - Q1 FY24 vs. Q4 FY23
Consolidated EBITDA Movement - Q1 FY24 vs. Q4 FY23 ₹ crore 7,939 231 212 7,046 (1,047) (290) EBITDA Volume NSR Cost Overseas EBITDA Q4 FY23 Subsidiaries Q1 FY24 JSW Steel Q1 FY24 Results Presentation 33 33
Slide 35: Consolidated Net Debt Movement
Consolidated Net Debt Movement ₹ crore 66,797 59,345 3,321 7,253 2,972 150 Net Debt New Repayments Forex Impact Movement Net Debt Mar'23 Loans Taken in Cash Jun'23 Particulars 30.06.2023 31.03.2023 30.06.2022 Net Debt (₹ Cr) 66,797 59,345 67,221 Cash & Cash Equivalents (₹ Cr) 13,466 20,719 9,789 Net
Slide 36: 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 1.48x 1.34x 3.75x 1.17x 3.20x Bonds and 0.96x 2.40x 2.61x 3.14x INR debt, debentures, 0.83x 0.89x Foreign 42% 41% 1.45x c
Slide 37: Project Updates
Agenda Key Highlights and Strategy Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q1 FY24 Results Presentation 36
Slide 38: Value Accretive Capex Pipeline
Value Accretive Capex Pipeline India Capex Plan Highlights of Capex Plan Rs.4,094 cr spent in Q1 FY24 • Adding 9mtpa steelmaking capacity in next two years Actual Spent 18,800 18,500 • Strong emphasis on decarbonisation: 14,214 14,625 o Best Available Technologies (BAT) ▪ Coke Dry Quenching in coke
Slide 39: Key Project Updates – Vijayanagar
Key Project Updates – Vijayanagar 5mtpa Brownfield Project • Construction activities for all packages underway • Refractory erection commenced for BF package • BOF vessel erection to commence in July • Equipment erection for all areas of HSM underway • Project to be completed by end of FY24 Coke Ove
Slide 40: Key Project Updates – BPSL & Other Downstream
Key Project Updates – BPSL & Other Downstream Phase-II Expansion from 3.5 to 5 MTPA • Key equipment received at site for Wire Rod Mill-2, SMS-2, Lime Calcination Plant-6. Civil, Structural & Equipment erection work in progress • Project expected to be completed by the end of FY24 Other Downstream Pr
Slide 41: Digitalisation at JSW Steel
Agenda Key Highlights and Strategy Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q1 FY24 Results Presentation 40
Slide 42: 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 End-to-End Value Lens | Democratize – Manufacturing & Mining (O&M, Quality) Transformation Continuous Digitalization – Sustainability, Safe
Slide 43: 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 44: Leveraging Data Science Technologies
Leveraging Data Science Technologies Machine Learning • Blast Furnace optimization and anomaly Standard & Advanced Analytics detection (Channeling and Heat • Integrated Control Tower (ICT) for Guidance Model) Operational Intelligence • Ferro-alloy optimization using AI-ML • Sales Analytics dashboard
Slide 45: Appendix
Agenda Key Highlights and Strategy Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q1 FY24 Results Presentation 44
Slide 46: Quarterly Volumes – Standalone
Quarterly Volumes – Standalone Crude Steel Production Steel Sales +9% +22% YoY -3% YoY QoQ -13% QoQ 5.60 5.44 5.68 5.00 4.93 4.03 Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 JSW Steel Q1 FY24 Results Presentation All figures in million tonnes 45
Slide 47: Financials – Standalone
Financials – Standalone ₹ crore Particulars Q1 FY24 Q1 FY23 Q4 FY23 FY23 Revenue from Operations 32,791 31,105 37,153 1,31,687 Operating EBITDA 4,861 3,352 6,247 15,371 Other Income 438 283 552 1,572 Finance Cost 1,457 1,030 1,556 5,023 Depreciation 1,265 1,177 1,305 4,952 Exceptional Items Gain/(Lo
Slide 48: Financials – BPSL and JSW Steel Coated Products
Financials – BPSL and JSW Steel Coated Products BPSL Q1 FY24 Q1 FY23 Q4 FY23 FY23 Crude Steel Production (mt) 0.74 0.61 0.78 2.76 Steel Sales (mt) 0.69 0.48 0.71 2.51 Revenue from Operations (₹ crore) 5,474 4,704 5,570 20,077 Operating EBITDA (₹ crore) 703 698 949 1,805 Profit/(Loss) after Tax (₹ cr
Slide 49: Financials – US Operations
Financials – US Operations USA – Ohio Operations Q1 FY24 Q1 FY23 Q4 FY23 FY23 Production - Crude Steel (net tonnes) 2,67,896 1,74,398 2,31,908 5,88,976 Sales - Slab (net tonnes) 1,81,164 65,749 1,25,124 2,99,272 HRC (net tonnes) 75,199 1,08,365 72,776 2,77,939 Revenue from Operations (US$ mn) 227.52
Slide 50: Financials – Italy and Joint Controlled Entity (JISPL)
Financials – Italy and Joint Controlled Entity (JISPL) Piombino, Italy Q1 FY24 Q1 FY23 Q4 FY23 FY23 Production – Rolled Products (Bars, Wire Rod & Rails) (tonnes) 97,933 79,558 67,210 2,80,354 Grinding Balls (tonnes) 11,297 16,739 11,174 48,409 Sales – Rolled Products (Bars, Wire Rod & Rails) (tonne
Slide 51: THANK YOU
THANK YOU Investor Relations Contact: ir.jswsteel@jsw.in