Jindal Stainless Limited · NSE:JSL
Jindal Stainless — Q1 FY22 Earnings Presentation
35 slides from Jindal Stainless's earnings presentation, Jul 29, 2021
Slide 1: Stock exchange intimation letter
29th July, 2021 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: Q1FY22 Earnings Presentation
JINDAL STAINLESS LTD and JINDAL STAINLESS (HISAR) LTD Q1FY22 Earnings Presentation July 29, 2021
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: Content
Content 1 Operational and Financial performance 2 Merger Overview 3 Capex Overview 4 Annexure 3
Slide 5: Operational and Financial Performance
Operational and 4 Financial Performance
Slide 6: JSL: Key Financials Highlights – Q1FY22
JSL: Key Financials Highlights – Q1FY22 Net Revenue from operations EBITDA 3,841 521 580 3,810 1,262 78 Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22 Shift (%) QoQ: 1% YoY: 204% Shift (%) QoQ: 11% YoY: 647% PAT 265 271 (87) Q1 FY21 Q4 FY21 Q1 FY22 Shift (%) QoQ: 2% YoY: NA 5 Note: Standalone finan
Slide 7: JSL: Key Operational Update – Q1FY22
JSL: Key Operational Update – Q1FY22 Sales Volume (‘000 MT) 255 238 89 Q1 FY21 Q4 FY21 Q1 FY22 Shift (%) QoQ: (7%) YoY: 168% Sales Composition Export 20% Domestic 80% 6 Note: Standalone financials
Slide 8: JSL: Q1FY22 Financial and Operational Discussions (Standalone)
JSL: Q1FY22 Financial and Operational Discussions (Standalone) Revenue for Q1FY22 stood at INR 3,841 crore o The Company increased its share of export sales to mitigate the temporary challenges in domestic market during the COVID restrictions/localized lockdowns in Q1FY22 EBITDA for Q1FY22 repor
Slide 9: JSHL: Key Financials Highlights – Q1FY22
JSHL: Key Financials Highlights – Q1FY22 Net Revenue from operations EBITDA 2,758 2,512 364 382 743 40 Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22 Shift (%) QoQ: (9%) YoY: 238% Shift (%) QoQ: 5% YoY: 862% PAT 226 240 -50 Q1 FY21 Q4 FY21 Q1 FY22 Shift (%) QoQ: NA YoY: NA 8 Note: Standalone financ
Slide 10: JSHL: Key Operational Update – Q1FY22
JSHL: Key Operational Update – Q1FY22 Sales Volume (’000 MT) 182 151 47 Q1 FY21 Q4 FY21 Q1 FY22 Shift (%) QoQ: (17%) YoY: 219% Sales Composition Export 13% Domestic 87% 9 Note: Standalone financials
Slide 11: JSHL: Q1FY22 Financial and Operational Discussions (Standalone)
JSHL: Q1FY22 Financial and Operational Discussions (Standalone) Q1FY22 revenue stood at INR 2,512 crore o Domestic demand in segments like Railways, Process Industry and Elevators remained stable EBITDA for Q1FY22 reported at INR 382 crore o Focussed growth strategy in the value-added segment, s
Slide 12: Key Raw Materials – Price Trend
Key Raw Materials – Price Trend Nickel (USD/MT) 15,930 17,359 15,930 15,930 14,210 12,723 12,215 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q3FY21 Q4FY21 Q1FY22 Note: Average quarterly prices; Source: LME Fe Chrome (INR/MT) 94,675 90,650 90,650 63,875 65,583 68,775 60,950 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22
Slide 13: JSL: Debt Position & Key Ratios
JSL: Debt Position & Key Ratios Borrowings (Standalone) As on As on As on (INR crore) June.2021 Mar.2021 Mar.2020 1.4 Net Debt/Equity Long term debt 1,320 1530 2,357 Inter corporate loan from 0.9 1,050 1,050 900 0.7 related party Total Long term debt 2,370 2,580 3,257 Short term borrowing 177 319 39
Slide 14: JSHL: Debt Position & Key Ratios
JSHL: Debt Position & Key Ratios Borrowings (Standalone) As on June As on March As on March Net Debt/Equity (INR crore) 2021 2020 2019 1.1 Long term debt 1,060 1,250 1,929 Short term borrowing (less than 0.6 0.5 239 127 90 12 months) Total Debt 1,299 1,376 2,019 Cash & Investments 7 8 19 Net Debt 1,
Slide 15: Merger Overview
Merger Overview 14
Slide 16: 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 17: Resilient Operational Performance
Resilient Operational Performance Revenue EBITDA 23,439 3,256 19,175 2,408 6,206 965 FY21 TTM Q1 FY22 FY21 TTM Q1 FY22 Interest Cost PBT 609 2,146 518 1,197 739 85 FY21 TTM Q1 FY22 FY21 TTM Q1 FY22 16 Note: Standalone proforma financials; All figures in INR. crore unless stated otherwise TTM : Trail
Slide 18: Consolidating Balance Sheet Strength
Consolidating Balance Sheet Strength Net Debt (INR Cr) Net Debt / Equity Net Debt / EBITDA 4,718 0.8 2.3 -41.9% 3,125 0.5 2,739 0.4 1.3 0.8 Mar’20 Mar’21 June’21 Mar’20 Mar’21 June’21 Mar’20 Mar’21 June’21 Prepayment of near term instalments of ~INR 2,000 Crore in last 15 months improves the free
Slide 19: JSL, JSHL Merger: Progressing Well
JSL, JSHL Merger: Progressing Well APPOINTED DATE • April 1, 2020 • Board approval of the scheme of arrangement MAJOR EVENTS • Stock Exchanges/SEBI approval EXPECTED COMPLETION • Shareholders and Creditors approvals IN H2 FY22 • NCLT approval • Implementation of Scheme • Received Stock Exchanges/SEB
Slide 20: Capex Overview
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Slide 21: 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 from 1.1MTPA to 2.1MTPA value added product segment Incr
Slide 22: JSL: Doubling Capacity at <1/3rd Cost
JSL: Doubling Capacity at <1/3rd Cost SMS - Upstream Combo Line - Downstream 2.1 1.25 0.75 1.6x 2x 0.80 1.7x 0.45 1.1 Existing Proposed Existing Proposed Existing Proposed Steel Melting Capacity HRAP Capacity CRAP Capacity Expansion(MTPA) Expansion (MTPA) Expansion (MTPA) Est. Capex ~INR 530 Cr Est.
Slide 23: JSL: Scaling-up Integrated Play
JSL: Scaling-up Integrated Play Ferro Chrome – Backward Integration Quality Lab & Other Balancing 350 250 1.4x Est. Capex ~INR 55 Cr Enhancing the quality assurance for new generation grades in high-end segments Existing Proposed Ferro Chrome Capacity Improve serviceability for better customer E
Slide 24: JSHL: Multiplying Speciality Product Mix
JSHL: Multiplying Speciality Product Mix 50 Years of Excellence 60 24 1.7x 3x 14 Est. Capex ~INR 250 Cr Est. Capex ~INR 200 Cr 22 Q2 FY22/ Est. Completion Q2 FY23/ Q4 FY23 Est. Completion Q2 FY24 Existing Planned Existing Planned Precision Strip Capacity Blade Steel Capacity Expansion (KTPA) Expansi
Slide 25: Integrated Expansion for Atmanirbhar Bharat
Integrated Expansion for Atmanirbhar Bharat Existing Incremental Total JSL Est. Capex Est. JSL Projects Capacity Capacity MTPA INR Cr Completion Estimated MTPA MTPA Capex Phasing SMS 1.10 1.00 2.10 530 Q3 FY23 (INR Cr) Combo Line 1,250 Q4 FY23 HRAP 0.80 0.45 1.25 ~1100 ~1100 CRAP 0.45 0.30 0.75 Ferr
Slide 26: Fight Against COVID
Fight Against COVID mB rf Oy 6000 MT LMO SUPPLIED TO HOSPITALS ACROSS HARYANA, ODISHA AND DELHI 35,000 EMPLOYEES AND FAMILIES OFFERED FREE VACCINATIONS 500-BED COVID EMERGENCY HOSPITAL SET UP IN HISAR J -—— OTHER INITIATIVES ) MEDICAL SUPPORT OFFERED ——————————_, Proper sanitisation of tactile infra
Slide 27: Annexure
Annexure 26
Slide 28: JSL: Abridged P&L Statement (Standalone)
JSL: Abridged P&L Statement (Standalone) YoY QoQ Particular (INR crore) Q1 FY22 Q1 FY21 Q4 FY21 Change (%) Change (%) Revenue from operations 3,841 1,262 204% 3,810 1% Total Expenditure 3,261 1,184 175% 3,288 (1%) EBITDA 580 78 647% 521 11% EBITDA/ton 24,378 8,737 179% 20,438 19% EBITDA margin (%) 1
Slide 29: JSL: Abridged P&L Statement (Consolidated)
JSL: Abridged P&L Statement (Consolidated) YoY QoQ Particular (INR crore) Q1 FY22 Q1 FY21 Q4 FY21 Change (%) Change (%) Revenue from operations 4,033 1,376 193% 3,914 3% Total Expenditure 3,432 1,312 162% 3,371 2% EBITDA 601 64 839% 542 11% EBITDA margin (%) 14.9% 4.7% 1025 bps 13.9% 105 bps Other I
Slide 30: JSHL: Abridged P&L Statement (Standalone)
JSHL: Abridged P&L Statement (Standalone) YoY QoQ Particular (INR crore) Q1 FY212 Q1 FY21 Q4 FY21 Change (%) Change (%) Net revenue from operations 2,512 743 238% 2,758 (9%) Total Expenditure 2,130 703 203% 2,394 (11%) EBITDA 382 40 862% 364 5% EBITDA/ton 25,278 8,373 202% 19,952 27% EBITDA margin (
Slide 31: JSHL: Abridged P&L Statement (Consolidated)
JSHL: Abridged P&L Statement (Consolidated) YoY QoQ Particular (INR crore) Q1 FY22 Q1 FY21 Q4 FY21 Change (%) Change (%) Net revenue from operations 2,776 852 226% 3,103 (11%) Total Expenditure 2,364 810 192% 2,697 (12%) EBITDA 412 43 864% 406 2% EBITDA margin (%) 14.9% 5.0% 983 bps 13.1% 178 bps Ot
Slide 32: 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 65% Subsidiaries /Investment ● Merger of JSL Lifestyle (mobility business), JSL Iberjindal S.L, Spain Media and JSCMS into JSL JSL Lifestyle (mobility
Slide 33: Shareholding Pattern
Shareholding Pattern JSL JSHL Floating Stock (%) Floating Stock (%) Retail & FII Others 21.0% Retail & Other 11.1% Other Others Promoters FII Promoters 16.9% 31.9% 41.9% 68.1% 14.8% 58.1% DII DII 6.0% 4.1% 32 Note – Data as on 30th June, 2021
Slide 34: 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 35: Thank You
Thank You 34