Jindal Stainless Limited · NSE:JSL
Jindal Stainless — Q1 FY23 Earnings Presentation
32 slides from Jindal Stainless's earnings presentation, Jul 27, 2022
Slide 1: Stock exchange intimation letter for earnings presentation
27th July, 2022 BSE Limited National Stock Exchange of India Ltd. 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 Ph. 02
Slide 2: Q1FY23 Earnings Presentation
JINDAL STAINLESS LTD and JINDAL STAINLESS (HISAR) LTD Q1FY23 Earnings Presentation July 27, 2022
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which has been prepared by Jindal Stainless Limited/Jindal Stainless (Hisar) Limited (referred to “respective company (ies)”) for this joint earning presentation, are purely for information purposes only and is not, and i
Slide 4: Standalone Operational and Financial Performance
Standalone Operational 3 and Financial Performance
Slide 5: JSL: Key Financials Highlights
JSL: Key Financials Highlights Sales Volume (‘000 MT) Sales Composition 269 Export 25% 238 236 Domestic 75% Q1 FY22 Q4 FY22 Q1 FY23 Shift (%) QoQ: (12)% YoY: (1)% Q1FY23 posed regulatory and unforeseen macro-economic challenges impacting the overall sales volumes 4
Slide 6: JSL: Key Financials Highlights
JSL: Key Financials Highlights Net Revenue from operations JSL: Q2&H1FY22 Financial and Operational EBITDA Discussions (Standalone) 761 6,287 5,336 580 523 3,841 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 Shift (%) QoQ: (15)% YoY: 39% Shift (%) QoQ: (31)% YoY: (10)% PAT 669 • Despite multiple c
Slide 7: JSHL: Key Financials Highlights
JSHL: Key Financials Highlights Sales Volume (‘000 MT) Sales Composition 179 151 132 Export 17% Domestic 83% Q1 FY22 Q4 FY22 Q1 FY23 Shift (%) QoQ: (26)% YoY: (13)% Specialty Products Division (SPD) maintained its focus on exports during Q1FY23 registering a 37% sales growth on YoY basis 6
Slide 8: JSHL: Key Financials Highlights
JSHL: Key Financials Highlights Net Revenue from operations JSL: Q2&H1FY22 Financial and Operational EBITDA 3,802 Discussions (Standalone) 537 3,071 2,512 382 316 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 Shift (%) QoQ: (19)% YoY: 22% Shift (%) QoQ: (41)% YoY: (17)% PAT 357 240 195 Continuous
Slide 9: Market Update
Market Update Railways – wagons, coaches, Infrastructure Process Industry metros • 3 Stainless steel foot over bridges • New coach production programme and (FOB) so far commissioned in new release of wagon tenders to help Naupada, Srikakulam in Andhra • Demand for special grades for strong demand Pr
Slide 10: Key Raw Materials- Price trend
Key Raw Materials- Price trend Nickel (USD/ MT) 28,940 26,395 19,821 17,573 17,359 19,125 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Note: Average quarterly prices; Source: LME Ferrochrome (INR/ MT) 1,18,782 1,10,840 1,15,895 1,17,746 94,675 90,650 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 9 Note: Av
Slide 11: JSL: Debt Position & Key Ratios
JSL: Debt Position & Key Ratios Borrowings (Standalone) As on As on As on (INR crore) June2022 Mar.2022 Mar.2021 0.9 Net Debt/Equity Lenders’ Debt Long term debt 1,644 1,455 1530 0.6 0.5 Short term borrowing 560 290 319 Total Lenders’ Debt 2,204 1,744 1849 Inter corporate loan from 1,050 1,050 1,050
Slide 12: JSHL: Debt Position & Key Ratios
JSHL: Debt Position & Key Ratios Borrowings (Standalone) As on As on As on (INR crore) June2022 Mar.2022 Mar.2021 Net Debt/Equity 0.6 Long term debt 1,199 1,205 1,250 0.4 0.4 Short term borrowing (less 196 421 127 than 12 months) Total Debt 1,395 1,626 1,376 Cash & Bank balances 23 21 8 FY21 FY22 Q1
Slide 13: Merger Overview
Merger Overview 12
Slide 14: Complementing Strengths
Complementing Strengths JSL JSHL Jajpur, Odisha Hisar, Haryana Key Plant Location Raw Material Hub, Port Proximity Key Consumption Hub Proximity 1.1 MTPA Integrated facility along with 0.8 MTPA with Specialized Product backward integration (Ferro Chrome and Division (SPD) including Blade Steel, Stai
Slide 15: Merger: JSL, JSHL
Merger: JSL, JSHL APPOINTED DATE • April 1, 2020 • Board approval of the scheme of arrangement • Stock Exchanges/SEBI approval MAJOR EVENTS • Shareholders and Creditors approvals • NCLT approval • Implementation of Scheme Post approval of the shareholders and creditors of JSL and JSHL on April 23, 2
Slide 16: Resilient Operational Performance
Resilient Operational Performance Revenue EBITDA 1,296 9,724 8,115 965 832 6,206 Q1FY22 Q4FY22 Q1 FY23 Q1FY22 Q4FY22 Q1 FY23 Interest Cost PBTPBT 1,100 85 74 76 740 636 Q1FY22 Q4FY22 Q1 FY23 Q1FY22 Q4FY22 Q1FY23 14 Note: Standalone proforma financials; All figures in INR. crore unless stated otherwi
Slide 17: Consolidating Balance Sheet Strength
Consolidating Balance Sheet Strength Net Debt (INR Cr) Net Debt / Equity Net Debt / EBITDA 0.8 (26)% 2.3 4,718 3,513 0.4 3,162 0.3 0.7 0.8 Mar’20 Mar’22 June’22 Mar’20 Mar’22 June’22 Mar’20 Mar’22 June’22 Despite higher RM volatility and ongoing capex, balance sheet remains strong Leverage ratio
Slide 18: Acquisition of JUSL
Acquisition of JUSL 17
Slide 19: JUSL Acquisition- Simplified Structure
JUSL Acquisition- Simplified Structure Existing Structure Jindal United Steel Limited (‘JUSL’) is a subsidiary of OPJ Steel Trading Private Limited (“OPJSTL”), a promoter group entity of the Company. JUSL is Purchase held by OPJ to the extend of 74% with the remainder 26% shares held by OPJSTL JSL
Slide 20: JUSL Acquisition- Full Integration
JUSL Acquisition- Full Integration Fully integrated stainless-steel operations under control of Jindal Stainless Limited Consideration and Timelines JSL JUSL SMS – 1.1 MTPA expanding to 2.1 The proposed acquisition of 74% stake in MTPA JUSL shall be made at an aggregating HSM – 1.6MTPA expanding to
Slide 21: Annexure
Annexure 20
Slide 22: JSL: Abridged P&L Statement (Standalone)
JSL: Abridged P&L Statement (Standalone) YoY QoQ Particular (INR crore) Q1FY23 Q1FY22 Q4FY22 Change (%) Change (%) Revenue from operations 5,336 3,841 39% 6,287 (15%) Total Expenditure 4,813 3,261 48% 5,526 (13%) EBITDA 523 580 (10%) 761 (31%) EBITDA/ton 22,216 24,378 (9%) 28,277 (21%) EBITDA margin
Slide 23: JSL: Abridged P&L Statement (Consolidated)
JSL: Abridged P&L Statement (Consolidated) YoY QoQ Particular (INR crore) Q1FY23 Q1FY22 Q4FY22 Change (%) Change (%) Revenue from operations 5,474 4,033 36% 6,564 (17%) Total Expenditure 4,925 3,432 44% 5,722 (14%) EBITDA 549 601 (9%) 842 (35%) EBITDA margin (%) 10.0% 14.9% (488) bps 12.8% (280) bps
Slide 24: JSHL: Abridged P&L Statement (Standalone)
JSHL: Abridged P&L Statement (Standalone) YoY QoQ Particular (INR crore) Q1 FY23 Q1 FY22 Q4 FY22 Change (%) Change (%) Net revenue from operations 3,071 2,512 22% 3,802 (19%) Total Expenditure 2,755 2,130 29% 3,265 (16%) EBITDA 316 382 (17%) 537 (41%) EBITDA/ton 23,898 25,278 (5%) 30,011 (20%) EBITD
Slide 25: JSHL: Abridged P&L Statement (Consolidated)
JSHL: Abridged P&L Statement (Consolidated) YoY QoQ Particular (INR crore) Q1 FY23 Q1 FY22 Q4 FY22 Change (%) Change (%) Net revenue from operations 3,454 2,776 24% 4,318 (20%) Total Expenditure 3,117 2,364 32% 3,714 (16%) EBITDA 337 412 (18%) 605 (44%) EBITDA margin (%) 9.8% 14.9% (508) bps 14.0% (
Slide 26: Proposed Structure Post Merger
Proposed Structure Post Merger Public Promoter 42.9% 57.1% ● Merger of JSHL into JSL JSL JSHL ● Swap ratio 1:1.95 PT Jindal Stainless 99.9% Indonesia Iberjindal S.L, 65% Subsidiaries /Investment ● Merger of JSL Lifestyle (mobility business), JSL Spain Media and JSCMS into JSL JSL Lifestyle (mobility
Slide 27: Capex Overview
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Slide 28: Leveraging World class Jajpur Infra & Hisar Speciality Product Leadership
Leveraging World class Jajpur Infra & Hisar Speciality Product Leadership JSL - Doubling Stainless Steel JSHL – Multiplying Speciality Capacity Products Augmenting Stainless Steel Melt capacity Strengthening product mix with expansion in value from 1.1MTPA to 2.1MTPA added product segment Incr
Slide 29: Integrated operations for Atmanirbhar Bharat
Integrated operations for Atmanirbhar Bharat Existing Incremental Total JSL Est. Capex Est. JSL Projects Capacity Capacity MTPA INR Cr Completion MTPA MTPA SMS 1.10 1.00 2.10 530 Q3 FY23 Combo Line 1,250 Q4 FY23 HRAP 0.80 0.45 1.25 CRAP 0.45 0.30 0.75 Ferro Chrome 0.25 0.10 0.35 315 Q3 FY24 Quality
Slide 30: Shareholding Pattern
Shareholding Pattern JSL JSHL Floating Stock (%) Floating Stock (%) Retail & Others Retail & FII Others 10.3% 20.7% 15.8% Promoters Other FII Other 29.9% Promoters 70.1% 13.8% 41.1% 58.9% DII DII 5.9% 4.5% 26 Note – Data as on 30th June, 2022
Slide 31: Contact Us
Contact Us Jindal Stainless Ltd.: Jindal Stainless Ltd. (JSL) is amongst the leading stainless steel manufacturing companies in the world and India's largest stainless steel manufacturer. The Company operates an Goutam Chakraborty / Shreya Sharma integrated stainless steel plant at Jajpur, Odisha. T
Slide 32: Thank You
Thank You 28