Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Q4 FY2023 Earnings Presentation
27 slides from Jindal Steel's earnings presentation, May 16, 2023
Slide 1: Exchange filing cover letter
May 16, 2023 BSE Limited National Stock Exchange of India Limited 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 corp.r
Slide 2: 4QFY23 & FY23 Earnings Presentation
Jindal Steel & Power Limited 4QFY23 & FY23 Earnings Presentation 16th May 2023
Slide 3: Safe Harbour Statement
Safe Harbour Statement This presentation may contain certain forward looking statements concerning steel sector, economy and JSP’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those
Slide 4: Building a nation of our dreams
Building a nation of our dreams OVER 3 DECADES OF EXCELLENCE JSP is focused towards building world-class capabilities to make India self-reliant and a global economic powerhouse 3
Slide 5: Company Snapshot
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives 4QFY23 & FY23 Results
Slide 6: JSP at a Glance
JSP at a Glance Growth Scaling up world-class, Innovative, value-added products High performance, integrated steel production to support India’s infrastructure customer-centric culture Focussed capacity creation Strong Net Debt/EBITDA at 0.7x Expansion programme to Targeting Net Debt / EBITDA boost
Slide 7: Macro and Sectoral Update
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives 4QFY23 & FY23 Results
Slide 8: World Economic Outlook
World Economic Outlook Global GDP Growth Rate (%) Global Inflation (%) CY22 CY23 (E) CY24 (E) CY22 CY23 (E) CY24 (E) +7% -45% Macro and Sectoral Update -13% -13% -39% -10% -44% -37% +7% +75% +73% 6.8 9.2 -34% -27% -31% 5.9 6.3 8.0 -49% 8.4 -9% -18% -77% 5.2 6.7 4.5 5.6 -24% 5.3 +16% 4.9 4.4 3.4 3.5
Slide 9: India Steel Scenario
India Steel Scenario Indian Crude Steel Production Indian Finished Steel Consumption • During the year, imposition of export duty Fig in Million Tonnes Fig in Million Tonnes led to a 64% reduction in FG exports, overall +5% +12% Macro and Sectoral Update steel exports were down by 55% 126.3 110.4 12
Slide 10: Key Steel and RM Prices Trend
Key Steel and RM Prices Trend India HRC vs Rebar Domestic Pellet prices - up 19% qoq Fig in `/tonnes Fig in `/tonnes 76,478 Macro and Sectoral Update 73,677 • China’s reopening resulted 73,454 61,596 in an uptick in steel 60,106 demand and consequently 11,292 9,963 prices 56,612 • However, overprodu
Slide 11: Business Update
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives 4QFY23 & FY23 Results
Slide 12: Integrated Value Chain
Integrated Value Chain World-class Assets Mining Iron Making Liquid Steel Finished Steel (10.42 MTPA) (9.60 MTPA) (6.65 MTPA) Business Update Iron-ore: Coal: Wire Rod Mill (WRM) 0.60 MTPA Direct Reduce Iron (DRI) 3.12 MTPA Steel Melting Shop (SMS) 9.60 MTPA Tensa 3.11 MTPA Utkal-C 3.37 MTPA Rail Mil
Slide 13: Focused Capacity Expansion
Focused Capacity Expansion Scaling-up for Market Leadership Capex Spend breakup Crude Steel Capacity Business Update (` in Crs) (in MTPA) 15.9 34% 12.9 9.6 8.6 6.3 Angul Phase II ~` 24,000 Cr 3.3 Angul Phase I 5.0 6.0 6.0 6.0 66% Raigarh 3.6 3.6 3.6 3.6 FY 21 FY 22 FY 24(P) FY 25(P) Margin Expansion
Slide 14: Doubling Capacity at Angul by FY25
Focused Capacity Expansion Doubling Capacity at Angul by FY25 EXPANSION PLANS TO BOOST VOLUMES & EARNINGS Angul Phase-II : Timeline FINISHED STEEL CAPACITY Business Update Expected FY22 FY23 FY24 FY25 COD Past (FY11) 25% BRM Angul Pellet Plant #1: 6MTPA 1QFY24 25% BSM 3.9 Margin RAIL MILL HSM Phase
Slide 15: Diversified Products & Customer Partnerships
Diversified Products & Customer Partnerships Innovating to Meet ‘Significant Unmet Needs’ of Customers Initiatives Customer group Result Largest domestic supplier of quenched Yellow goods and Import substitution & tempered plates for applications that Construction equipment Value added exports under
Slide 16: Enhancing Brand Equity and Consumer Connect
Diversified Products & Customer Partnerships Enhancing Brand Equity and Consumer Connect Title Sponsor for IPL 2023 Cricket Live on Star Sports Business Update Jindal Panther Cricket Live breaks all past viewership records this season - 300 million reach on TV in just 3 Engagement of Channel partner
Slide 17: Strong Balance Sheet
Strong Balance Sheet Strengthening Fundamentals to Drive Sustainable Growth Business Update Consolidated Performance Net Debt (` in Crs) Net Debt/EBITDA (x) Debt/Equity (x) -82% -85% -74% 4.65 4.57 1.23 1.15 39,137 35,918 0.92 22,146 1.53 0.35 0.32 8,876 6,953 0.57 0.70 FY19 FY20 FY21 FY22 FY23 FY19
Slide 18: Social Initiatives
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives 4QFY23 & FY23 Results
Slide 19: Empowering our Communities
Empowering our Communities Social Initiatives HEALTH & NUTRITION EDUCATION SKILL EDUCATION RURAL INFRASTRUCTURE SOCIAL INCLUSION VATSALYA aims to reduce Infant YASHASVI aims to educate on O.P. JINDAL COMMUNITY COLLEGES • Construction and renovation JINDAL PRAYAS CENTRE OF EXCELLENCE Mortality Rate a
Slide 20: Awards & Recognitions
Awards & Recognitions Social Initiatives National CSR Award, by Best Social Impact Award Ministry of Corporate Affairs, during COVID-19 by World GoI (announced in Aug 22) Sustainability Federation • CSR in Aspirational Best Women Districts/Difficult Terrains in Empowerment Initiative by Eastern Indi
Slide 21: Results
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives 4QFY23 & FY23 Results
Slide 22: 4QFY23 & FY23 Highlights - Consolidated
4QFY23 & FY23 Highlights - Consolidated Gross revenue Adjusted EBITDA** PAT Net Debt Net Debt to EBITDA 4QFY23 & FY23 Result 4QFY23 4QFY23 4QFY23 4QFY23 4QFY23 (LTM) ₹15,781 Cr ₹2,240 Cr ₹466 Cr ₹6,953 Cr 0.7x 3QFY23– ₹14,452 Cr 3QFY23 - ₹2,296** Cr 3QFY23– ₹518 Cr 3QFY23 ₹7,090 Cr 3QFY23– 0.7x Gros
Slide 23: 4QFY23 & FY23 Highlights - Standalone
4QFY23 & FY23 Highlights - Standalone Steel Production Steel Sales Gross revenue Adjusted EBITDA** PAT 4QFY23 & FY23 Result 4QFY23 4QFY23 4QFY23 4QFY23 4QFY23 2.02 mt 2.03 mt ₹15,480 Cr ₹2,178Cr ₹789 Cr 3QFY23– 2.06 mt 3QFY23 – 1.90 mt 3QFY23– ₹13,831 Cr 3QFY23 - ₹2,163Cr 3QFY23– (₹4,512 Cr) Steel P
Slide 24: Net Debt and EBITDA bridge (4QFY23)
Net Debt and EBITDA bridge (4QFY23) Consolidated Net Debt Movement (QoQ) (` in Crs) 4QFY23 & FY23 Result Standalone Adjusted EBITDA Movement (QoQ) (` in Crs) Jindal Steel & Power 23
Slide 25: Financial Performance - Standalone
Financial Performance - Standalone 4QFY23 & FY23 Result Rs Crore Quarterly performance Annual performance Particulars 4QFY23 3QFY23 4QFY22 FY23 FY22 Gross Revenue* 15,480 13,831 15,579 58,970 55,184 Net Revenue 13,392 11,832 13,831 51,180 49,431 Adjusted EBITDA** 2,178 2,163 2,655 8,591 14,765 Depre
Slide 26: Financial Performance - Consolidated
Financial Performance - Consolidated 4QFY23 & FY23 Result Rs Crore Quarterly performance Annual performance Particulars 4QFY23 3QFY23 4QFY22 FY23 FY22 Gross Revenue* 15,781 14,452 16,089 60,505 56,841 Net Revenue 13,692 12,452 14,339 52,711 51,086 Adjusted EBITDA** 2,240 2,296 2,899 9,700 15,241 Dep
Slide 27: Thank you
Thank you JINDAL STEEL & POWER
Jindal Steel & Power — Q4 FY2023 Earnings Presentation on 6ix