Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q1 FY2023 Earnings Presentation
46 slides from Jsw Steel's earnings presentation, Jul 22, 2022
Slide 1: Cover letter to stock exchanges
ftW .,,.:,' _,ISW Steel Limited Regd. Office : JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051 CIN,: L27102MH1994PLC152925 Phone : +91 22 4286 1000 Fax : +91 22 4286 3000 Website: www.jsw.in JSWSL: SECT: MUM: SE: 2022-23 July 22, 2022 1. National Stock Exchange of India Ltd. 2. BSE
Slide 2: Q1 FY2023 Results Presentation
Where there’s steel, there’s JSW. Q1 FY2023 Results Presentation 22 July 2022 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: Key Highlights – Q1 FY23
Key Highlights – Q1 FY23 • Revenue from Operations: ₹38,086 crore • Operating EBITDA: ₹4,309 crore Consolidated • Net Profit: ₹839 crore Performance • Net Debt to Equity: 0.98x and Net Debt to EBITDA1: 2.03x • Average capacity utilization of 93% in Q1 FY23 for standalone operations (excl. Dolvi Phas
Slide 5: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q1 FY23 Results Presentation 4
Slide 6: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q1 FY23 Results Presentation 5
Slide 7: Sustainability Framework and Priorities
Sustainability Framework and Priorities 17 Focus Areas Governance & Oversight By Board-level Business Responsibility And Climate Change: Biodiversity: No Net Loss for Biodiversity Sustainability Committee • Aligned to India’s Nationally Determined Contributions for Climate Change as per Ms. Fiona Pa
Slide 8: Environment: Targets and Strategy
Environment: Targets and Strategy SD Targets FY05 FY30 Targets Improvement Strategic Approach • Transition from thermal to renewable energy • Specific Energy • Reduction of fuel rate in BF and DRI GCal/tcs 6.94 5.65 19% Climate • Increased use of scrap in steel making Change • GHG Emissions 3.39 1.9
Slide 9: Environmental Performance
Environmental Performance Specific Energy Consumption (Gcal/tonne) GHG Emission Intensity (tCO2/tcs) Specific Freshwater Consumption (m3/tcs) 2.75 6.59 4.13 6.56 3.79 6.38 2.59 6.24 2.52 2.60 2.41 2.45 2.47 2.49 2.50 6.04 6.01 2.40 FY18 FY19 FY20 FY21 FY22 Q1 FY23 FY18 FY19 FY20 FY21 FY22 Q1 FY23 FY
Slide 10: Health & Safety
Health & Safety Vision to achieve ‘Zero Harm’ JSW is committed to providing a safe and healthy working environment and achieving an injury- & occupational illness-free workplace Building a Culture of Health & Safety Health & Safety Initiatives Competency Development Awards & Recognitions • 146,000+
Slide 11: Sustainability Initiatives & Recognitions
Sustainability Initiatives & Recognitions Initiatives Recognitions Steel-Slag Sand plant at VJN Recognized as Climate Leader Commissioned 0.30 MTPA capacity low Nikkei Asia and Financial Times have recognised JSW Steel as one of the cost eco-friendly Steel-Slag Sand plant Climate Leaders Asia-Pacifi
Slide 12: Our Communities
Our Communities Supporting Innovations in Circular Economy Offsetting Plastic and Generating Livelihoods New Initiatives & Updates • In partnership with EcoKaari, JSW Foundation has committed to upcycling more than 4,000 kgs of waste plastic every month • Project aims to empower communities with sus
Slide 13: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q1 FY23 Results Presentation 12
Slide 14: Global Economy
Global Economy GDP Growth Forecasts (%YoY) • World Bank reduced 2022 global GDP forecast by 120 bps to CY22F (Jan 22) CY22F (Jun 22) CY23F (June 22) 2.9%, due to ongoing Russia-Ukraine conflict, high inflation especially in food & energy and consequent monetary policy tightening. Elevated concerns o
Slide 15: Global Steel
Global Steel Crude Steel Production – Jan-May (mt) Steel Demand (mt) China Steel Production and Export (mt) Jan-May CY20 Jan-May CY21 Jan-May CY22 CY21 CY22F (Apr 22) CY23F (Apr 22) China Crude Steel Production (LHS) 150 10 -6.3% +0.4% Exports (RHS) 8 1,881 1,840 1,834 845 -8.7% 0% 100 792 6 738 -3.
Slide 16: Indian Economy
Indian Economy PMI – Manufacturing & Services GST Collection (₹ Lakh Cr) • Robust recovery in indicators for Q1 FY23 across all sectors PMI Manufacturing PMI Service including consumption, manufacturing and services 60 2.0 • Fiscal pressure due to elevated fuel, food and fertilizer prices, 50 1.5 pa
Slide 17: Indian Steel
Indian Steel Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q4 FY22 Q1 FY23 Finished Semis Finished Semis QoQ Trend -2.9% -5.6% 31.92 -2.5% -25.8% 30.98 3.89 29.00 27.36 1.26 1.23 0.72 2.88 0.05 0.06 0.69 1.21 1.17 3.17 2.19 Crude Steel Production Apparent Steel Consumption Q4
Slide 18: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q1 FY23 Results Presentation 17
Slide 19: Quarterly Volumes – Standalone
Quarterly Volumes – Standalone Crude Steel Production Steel Sales +22% +12% YoY 0% YoY QoQ -21% QoQ 5.01 5.00 5.11 4.10 4.03 3.61 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 Flat 2.67 3.79 3.03 Flat 2.94 3.76 3.60 Long 0.84 1.20 0.87 Long 0.96 1.15
Slide 20: Q1 FY23 Volumes – Consolidated India Operations
Q1 FY23 Volumes – Consolidated India Operations Crude Steel Production Total Sales Share of VASP Domestic Sales Export Domestic Others VASP OEM/Industrial Retail Auto Q1 4.33mt 3.45mt 5.62 80% Q1 FY23 57% 47% 35% 18% FY23 -2% -27% QoQ QoQ 4.55mt Q4 5.90mt Q4 5.71 57% 48% 39% 13% FY22 77% FY22 2.27mt
Slide 21: Retail Segment and Branded Stores Highlights
Retail Segment and Branded Stores Highlights Retail Sales (in kt) Branded Stores (number of outlets) -32% 1,396 QoQ 53 new branded 1,791 95 stores added in new towns and 42 in existing towns 1,222 794 1068 602 84 630 721 11 1301 312 710 723 591 501 318 Q1 FY22 * Q4 FY22 Q1 FY23 JSW Shoppe JSW Shoppe
Slide 22: Q1 FY23 Production & Sales Summary
Q1 FY23 Production & Sales Summary In million metric tonnes Q1 FY23 Crude Steel Particulars Sales Production Consolidated Indian Operations 5.62 4.33 Joint Control Entity: JSW Ispat Special Products Ltd. 0.11 0.12 Indian Operations incl. Joint Control* 5.72 4.45 JSW Steel USA Ohio 0.16 0.16 Total Co
Slide 23: Grades/Products Approved in Q1 FY23
9 Grades/Products Approved in Q1 FY23 Galvanized Steel – High Strength & Structural Steel for Solar Hot Rolled - High Carbon Steel for Clutch Plate Application Structural Support Application (Tractor, CV) Tube for Solar Structural support Clutch Plate (EN -10346 S450GD+Z GP275 – GP) (C80 – HR) Tin P
Slide 24: JSW Steel: Making Cars Safer for You
JSW Steel: Making Cars Safer for You Door Impact beams • Indian automotive industry is evolving to adopt B Pillars consumer demand for 5-star rated cars for safety Front Cross Member • JSW Steel is working closely with auto makers to make cars safer, lighter and fuel efficient • JSW's AHSS (advanced
Slide 25: Brand Initiatives and Customer Engagement
Brand Initiatives and Customer Engagement JSW Steel “Always Around” TV Commercial Where there’s steel, there’s JSW The “Always Around” film showcases the various applications of JSW’s steel in an engaging and entertaining format through “Claymation”. Launched on TV, OTT, Digital & OOH http://surl.li
Slide 26: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q1 FY23 Results Presentation 25
Slide 27: Financials – Standalone
Financials – Standalone ₹ crore Particulars Q1 FY23 Q4 FY22 Q1 FY22 FY22 Revenue from Operations 31,105 36,011 25,959 118,820 Operating EBITDA 3,352 6,907 9,491 31,868 Other Income 283 416 200 1,929 Finance Cost 1,030 1,317 843 3,849 Depreciation 1,177 1,225 998 4,511 Exceptional Items - 722 - 722 P
Slide 28: Operating EBITDA Movement Q1 FY23 – Standalone
Operating EBITDA Movement Q1 FY23 – Standalone ₹ crore JSW Steel Q1 FY23 Results Presentation 27
Slide 29: JSW Steel Coated Products (Consolidated)
JSW Steel Coated Products (Consolidated) Million tonnes Volumes Q1 FY23 Q4 FY22 Q1 FY22 FY22 Production (GI/GL + Tin) 0.68 0.79 0.66 2.93 Sales 0.68 0.94 0.70 3.22 ₹ crore Key P&L data Q1 FY23 Q4 FY22 Q1 FY22 FY22 Revenue from 6,891 8,935 6,728 31,775 Operations Operating EBITDA (154) 325 963 2,890
Slide 30: Bhushan Power and Steel Ltd (BPSL)
Bhushan Power and Steel Ltd (BPSL) Million tonnes Volumes Q1 FY23 Q4 FY22 FY22 Crude Steel Production 0.61 0.71 1.34 Steel Sales 0.48 0.78 1.36 ₹ crore Key P&L data Q1 FY23 Q4 FY22 FY22 Revenue from 4,704 6,125 11,208 Operations Operating EBITDA 698 1,553 3,100 Profit after Tax 221 1,044 2,062 Note:
Slide 31: Operational Performance – Ohio, USA
Operational Performance – Ohio, USA Net tonnes Operational Q1 FY23 Q4 FY22 Q1 FY22 FY22 Production - Crude Steel 174,398 106,884 150,539 605,657 Sales - Slab 65,749 12,788 52,391 213,175 Sales - HRC 108,365 74,185 62,678 318,493 US$ mn Key P&L data Q1 FY23 Q4 FY22 Q1 FY22 FY22 Revenue from Operation
Slide 32: Operational Performance – US Plate & Pipe Mill
Operational Performance – US Plate & Pipe Mill Net tonnes Production Q1 FY23 Q4 FY22 Q1 FY22 FY22 Plate Mill 87,213 63,494 78,648 292,037 Pipe Mill 4,658 1,008 5,685 12,845 Net tonnes Sales Q1 FY23 Q4 FY22 Q1 FY22 FY22 Plate Mill 81,788 68,969 67,467 266,575 Pipe Mill 4,663 977 4,935 12,383 US$ mn K
Slide 33: Operational Performance – Piombino, Italy
Operational Performance – Piombino, Italy tonnes Production Q1 FY23 Q4 FY22 Q1 FY22 FY22 Rolled Products (Bars, Wire 79,558 94,007 63,834 319,316 Rod & Rails) Grinding Balls 16,739 15,856 10,419 49,465 tonnes Sales Q1 FY23 Q4 FY22 Q1 FY22 FY22 Rolled Products (Bars, Wire 72,701 95,899 47,906 315,459
Slide 34: Joint Controlled Entity: JSW Ispat Special Products
Joint Controlled Entity: JSW Ispat Special Products Million tonnes Key Metrics Q1 FY23 Q4 FY22 Q1 FY22 FY22 Crude Steel Production (mt) 0.11 0.17 0.14 0.58 Steel Sales (mt) 0.12 0.17 0.14 0.58 ₹ crore Key P&L data Q1 FY23 Q4 FY22 Q1 FY22 FY22 Revenue from Operations 1,665 1,688 1,462 6,061 Operating
Slide 35: Financials – Consolidated
Financials – Consolidated ₹ crore Particulars Q1 FY23 Q4 FY22 Q1 FY22 FY22 Revenue from operations 38,086 46,895 28,902 146,371 Operating EBITDA 4,309 9,184 10,274 39,007 Other Income 189 233 198 1,531 Finance Cost 1,422 1,756 993 4,968 Depreciation 1,778 1,815 1,183 6,001 Share of Profit/ (Loss) of
Slide 36: Q1 FY23 Results – Drivers of Performance (Standalone)
Q1 FY23 Results – Drivers of Performance (Standalone) • Operated at 93% capacity utilization for the standalone operations (excl. Dolvi Phase-II) vs. 98% during 4QFY22 due to pre-ponement of certain scheduled shutdowns Volumes • Sales volumes lower by 21% QoQ on imposition of export duty in May 2022
Slide 37: Net Debt Movement – Consolidated
Net Debt Movement – Consolidated ₹ crore Particulars 30.06.2022 31.03.2022 30.06.2021 Net Debt (₹ Cr) 67,221 56,650 54,989 Cash & cash equivalent (₹ Cr) 9,789 17,390 8,602 Net Debt/Equity (x) 0.98 0.83 1.04 Net Debt/EBITDA (x) 2.03 1.45 1.89 JSW Steel Q1 FY23 Results Presentation Note: Net Debt excl
Slide 38: Strong Balance Sheet
Strong Balance Sheet Net Gearing (ND/Equity) well Leverage (ND/EBITDA) well under the stated cap of 1.75x under the stated cap of 3.75x Diversified Funding Sources 1.75x 4.50x 1.38x 1.48x 1.34x 3.75x 1.17x 0.98x 2.60x 2.61x Bonds and 2.40x Foreign 0.83x 2.03x INR debt, debentures currency Loans and
Slide 39: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q1 FY23 Results Presentation 38
Slide 40: Key Project Updates - Vijayanagar
Key Project Updates - Vijayanagar 5mtpa brownfield project • Long lead-time items ordered, Letters of Credit established • Construction activities for all packages underway • Project to be completed by FY24 Coke Oven Plant • 1.5 mtpa Coke Oven battery: Commissioning in phases from Q2 FY23 • Capacity
Slide 41: Key Project Updates – BPSL
Key Project Updates – BPSL Phase-I expansion to 3.5 MTPA (By Q2 FY23) • EAF Modification: Completed in Q4 FY22 • Caster Modification: Commissioned in Q1 FY23 • Sinter Plant-2: Commissioned in July 2022 • SMS modification in advanced stage Sinter Plant-2 at JSW BPSL Phase-II expansion to 5 MTPA (By F
Slide 42: Key Project Updates – Downstream
Key Project Updates – Downstream Downstream projects • 0.5mtpa Continuous Annealing Line at Vasind o To be commissioned in July 2022 • Second Tinplate line of 0.25 mtpa at Tarapur o To be commissioned in July 2022 • 0.25 MTPA Colour Coating line at Rajpura, Punjab o To be commissioned in Q4 FY23 • 0
Slide 43: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q1 FY23 Results Presentation 42
Slide 44: Digitalization: JSW’s Approach & Impact Created
Digitalization: JSW’s Approach & Impact Created Wave 4 and Digital Vision-2025 Expand and scale Digital to best-in-class: – Enhance Sales, Marketing, Customer service and eCommerce – Existing plants – Continue digital projects – New plants – ACCIL, JSW-ISPL, JSW- BPSL – Support functions – HR, Finan
Slide 45: JSW’s Digital Focus Areas
JSW’s Digital Focus Areas Additional Focus Technologies Used Core Systems (SAP, SalesForce, Mining Microsoft Azure, DarwinBox), IoT, AI/ML, Analytics, Cloud/Edge Computing, RPA, Intelligent Cameras Safety, Security, Sustainability led Governance R&D → Leveraging JSW Digital team, Tech Finance Primar
Slide 46: THANK YOU
THANK YOU Investor Relations Contact: ir.jswsteel@jsw.in