Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q3 FY2024 Earnings Presentation
50 slides from Jsw Steel's earnings presentation, Jan 25, 2024
Slide 1: Exchange filing cover letter
JSWSL: MUM: SEC: SE: 2023-24 January 25, 2024 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.5002
Slide 2: Q3 FY2024 Results Presentation
Atal Setu: Mumbai Trans-Harbour Link Connecting Mumbai: JSW Steel was the Principal Steel Supplier to India’s longest sea bridge of 21.8km Q3 FY2024 Results Presentation 25 January 2024 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: Agenda
Agenda Page Sustainability 5 Strategy and Growth 14 Business Environment 17 Operational Performance 22 Financial Performance 30 Project Updates 37 Digitalisation at JSW Steel 40 Appendix 43 JSW Steel Q3 FY24 Results Presentation 3
Slide 5: Key Highlights – Q3 FY24
Key Highlights – Q3 FY24 • Revenue from Operations: ₹41,940 crore • Operating EBITDA: ₹7,180 crore Consolidated • Net Profit: ₹2,450 crore Performance • Net Debt to Equity: 1.02x and Net Debt to EBITDA1: 2.64x • Consolidated crude steel production of 6.87mt in Q3 FY24, up 12% YoY • Average India cap
Slide 6: Agenda
Agenda Sustainability Strategy and Growth Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q3 FY24 Results Presentation 5
Slide 7: 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 Biodiversity Sust
Slide 8: 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 Carbon Neutral at JSW Steel by Transition from thermal to Promoting Circular Economy Maintaing zero liquid discharge 70% reduction of specific process F
Slide 9: Targeting Net Zero by 2050
Targeting Net Zero by 2050 Short-Term Medium and Long-Term Ensuring Renewable Power Commercial Deployment Nature Based Use of Syngas & TGR1 in Energy Efficiency (Energy Transition) of Green Hydrogen for Solutions BF (Carbon Circularity) Steelmaking Actively Improving Enhancing Process Scrap-based EA
Slide 10: Building a Strong Health & Safety Culture
Building a Strong Health & Safety Culture World Steel Association SCHO-15 Meet JSW Steel’s Vision 000 Capacity Building Zero Zero Zero major • JSW Steel participated in the SCHO-151 meeting injury harm incidents hosted by the WSA in Portland, USA in November • JSW Steel presented a case study titled
Slide 11: Environmental Performance
Environmental Performance Specific Energy Consumption (Gcal/tcs) GHG Emission Intensity (tCO2/tcs) Specific Freshwater Consumption (m3/tcs) 6.56 2.60 6.38 2.52 2.49 2.50 2.45 2.36 6.04 2.45 2.45 2.41 2.42 5.66 5.71 FY20 FY21 FY22 FY23 9M FY24 FY20 FY21 FY22 FY23 9M FY24 FY20 FY21 FY22 FY23 9M FY24 D
Slide 12: Sustainability Recognitions & Initiatives in Q3 FY24
Sustainability Recognitions & Initiatives in Q3 FY24 Dow Jones Sustainability Index Project SEED for Decarbonisation Global Energy Transition • Included in the Dow Jones World and Emerging Changemakers Award Markets Sustainability Indices at COP28 in Dubai • Top 2 in S&P CSA2 for the global steel se
Slide 13: Our Commitment to Society
Our Commitment to Society Skill Development Key Intervention Areas Health & Agriculture JSW Shakti Nutrition All-women BPO empowers women to earn livelihoods with Water, Education training and mentoring Environment & Sanitation • 260 women employed currently Waste Skill • Trained for handling Manage
Slide 14: Our Commitment to Society
Our Commitment to Society Education 100 ‘Holistic Transformation’ of schools ‘Roof to Dream’ Project Schools in North Karnataka in Maharashtra • Focus on improving learning outcomes in children from • Refurbishing school infrastructure to provide a conducive 25,000+ Anganwadi level to Grade-10 learn
Slide 15: Agenda
Agenda Sustainability Strategy and Growth Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q3 FY24 Results Presentation 14
Slide 16: 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 17: 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 Organic Growth Options 3.5 • Brownfield growth potential of ~5mt at each
Slide 18: Agenda
Agenda Sustainability Strategy and Growth Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q3 FY24 Results Presentation 17
Slide 19: Global Economy
Global Economy GDP Growth Forecasts (%YoY) • Global growth surpassed earlier estimates in 2023 by 0.3pp. As per CY23F (as of Jan 24) CY24F (June 23) CY24F (Jan 24) World Bank, 2024 growth will be marginally weaker at 2.9% vs 6.4% 2023. Inflation easing in major economies, opening up possibilities 6.
Slide 20: Global Steel
Global Steel Crude Steel Production – Jan-Nov (mt) Finished Steel Demand1 (mt) China Steel Production and Export (mt) Jan-Nov CY21 Jan-Nov CY22 Jan-Nov CY23 CY22 CY23F (Dec 23) CY24F (Dec 23) China Crude Steel Production (LHS) 150 10 +0.5% +1.1% Exports (RHS) 8 100 1,715 +1.5% 1,820 1,800 1,783 6 -0
Slide 21: Indian Economy
Indian Economy PMI – Manufacturing & Services GST Collections (₹ Lakh Cr) • Strong economic growth momentum led by manufacturing and PMI Manufacturing PMI Services investments in infrastructure. Election-related spending likely to 65 2.1 boost consumption 1.9 60 1.7 1.5 • Central govt. capex up 31%
Slide 22: Indian Steel
Indian Steel Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q3 FY23 Q2 FY24 Q3 FY24 Finished Semis Finished Semis +15.9% +12.1% +12.0% 2.59 YoY YoY 2.26 2.23 2.33 35.98 0.35 35.14 35.15 0.33 +16.2% 0.28 -16.4% 0.41 1.64 32.10 31.38 33.51 1.66 QoQ 1.37 QoQ 0.23 1.32 0.19 0.18 0
Slide 23: Agenda
Agenda Sustainability Strategy and Growth Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q3 FY24 Results Presentation 22
Slide 24: Q3 FY24 Volumes – JSW Steel Consolidated
Q3 FY24 Volumes – JSW Steel Consolidated Crude Steel Production Steel Sales +12% +7% YoY YoY -5% +8% QoQ QoQ 6.87 6.14 6.34 6.34 6.00 5.63 Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 Indian Operations 6.06 6.20 6.63 Indian Operations 5.55 6.18 5.82
Slide 25: Q3 FY24 Sales: JSW Steel Consolidated – Indian Operations
Q3 FY24 Sales: JSW Steel Consolidated – Indian Operations Customer Segments – Domestic Sales Value-Added and Special Products 5.16mt 5.49mt 5.27mt +2% YoY % of Total 53% 62% 60% Sales: 3.81 33% 3.49 38% 40% Retail 2.98 14% Auto 12% 13% 14% 16% 15% Industrial 35% 32% 37% Construction & Infra Q3 FY23
Slide 26: Retail Segment & Branded Stores
Retail Segment & Branded Stores: JSW Steel Consolidated – Indian Operations Retail Sales (in kt) Branded Stores (number of outlets) -13% YoY 2,025 -22% 226 new 376 branded stores QoQ added in new 2,210 1,980 towns and 150 1,319 in existing towns 1,717 1,360 312 1,178 1,029 706 1,649 64 1,007 802 850
Slide 27: Q3 FY24 Production & Sales
Q3 FY24 Production & Sales In million metric tonnes Particulars Crude Steel Production Sales Q3 FY24 Q3 FY23 YoY Q3 FY24 Q3 FY23 YoY Consolidated India Operations 6.63 6.06 9.4% 5.82 5.55 4.9% USA – Ohio Operations 0.24 0.08 191.1% 0.18 0.08 129.9% JSW Steel Consolidated Operations 6.87 6.14 11.9% 6
Slide 28: Grades/Products Approved in Q3 FY24
12 Grades/Products Approved in Q3 FY24 Coated Steel for Renewables, Special Alloy Steel for Auto OEMs and General Engineering Applications and Hot Rolled Steel for Railways Seamless Tubes for Oil & Gas Industry Solar Module (SAE1518, SAE1524, SAE1524V – Mounting Structure Long & Special Alloy) (Mags
Slide 29: JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions
JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions Partner Online Shop Ecosystem • JSW One is one of India’s leading integrated B2B Product commerce platforms catering to buying needs of E-connect search forums Manufacturing MSMEs MSME • Offers building material products, logistics a
Slide 30: JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions
JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions Strong customer traction and stellar customer base Significant growth in Volumes & GMV Volumes 9M FY24 (metric tons) No of registered customers ~43,000 Steel Cement ~4,20,000 ~50,000 Visits on platform1 ~1,55,000 Up 4.7x Up 11x YoY Y
Slide 31: Agenda
Agenda Sustainability Strategy and Growth Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q3 FY24 Results Presentation 30
Slide 32: Financials – Consolidated
Financials – Consolidated ₹ crore Particulars Q3 FY24 Q3 FY23 Q2 FY24 FY23 Revenue from operations 41,940 39,134 44,584 1,65,960 Operating EBITDA 7,180 4,547 7,886 18,547 Other Income 194 188 237 1,030 Finance Cost 1,996 1,819 2,084 6,902 Depreciation 2,059 1,882 2,019 7,474 Share of Profit/ (Loss)
Slide 33: Q3 FY24 Consolidated Results – Drivers of Performance
Q3 FY24 Consolidated Results – Drivers of Performance • Capacity utilization of 94% at Indian operations vs 89% in Q2 FY24 given maintenance shutdowns in the previous quarter Volumes • Total sales volumes were down 5% QoQ but increased 7% YoY. The QoQ fall is attributed to lower retail sales (impact
Slide 34: Consolidated EBITDA Movement – Q3 FY24 vs. Q2 FY24
Consolidated EBITDA Movement – Q3 FY24 vs. Q2 FY24 ₹ crore 7,886 221 192 7,180 453 86 580 EBITDA Volume NSR Cost Overseas Consol Adj. EBITDA Q2 FY24 subsidiaries Q3 FY24 JSW Steel Q3 FY24 Results Presentation 33 33
Slide 35: Financials – Indian Operations
Financials – Indian Operations ₹ crore JSW Steel – India Q3 FY24 Q3 FY23 Q2 FY24 FY23 Crude Steel Production (mt) 6.63 6.06 6.20 23.62 Steel Sales (mt) 5.82 5.55 6.18 21.86 Revenue from Operations 39,715 37,032 41,791 1,56,616 Operating EBITDA 6,923 4,448 7,734 17,903 Profit/(Loss) after Tax 2,553 6
Slide 36: Consolidated Net Debt Movement
Consolidated Net Debt Movement 13,113 ₹ crore 306 79,221 2,433 960 69,195 Net Debt New Repayments Forex Impact Movement Net Debt Sep'23 Loans Taken in Cash Dec'23 Particulars 31.12.2023 30.09.2023 31.12.2022 Net Debt (₹ Cr) 79,221 69,195 69,498 Cash & Cash Equivalents (₹ Cr) 12,061 11,101 11,176 Net
Slide 37: 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 Bonds and 1.02x 3.20x Foreign 2.40x 2.61x 2.64x debentures, 0.83x 0.89x currency debt, 38% 1.45x
Slide 38: Agenda
Agenda Sustainability Strategy and Growth Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q3 FY24 Results Presentation 37
Slide 39: Key Project Updates – BPSL & Downstream
Key Project Updates – BPSL & Downstream Phase-II Expansion from 3.5 to 5 MTPA • SMS-2: DRI conveyor, Zero Power Furnace, Caster and supporting facilities commissioned • Wire Rod Mill-2 and Lime Calcination Plant-6 commissioning in Q4 FY24 • Project to be completed in Q4 FY24 Ladle Turret at SMS-2 in
Slide 40: Key Project Updates – Vijayanagar
Key Project Updates – Vijayanagar 5mtpa Brownfield Project • Construction activities for all packages underway • BF: Civil & Structural nearing completion. Equipment erection & Piping work at advanced stage • SMS: 1st Convertor and Caster equipment erection completed • HSM: All Mill Stands erected a
Slide 41: Agenda
Agenda Sustainability Strategy and Growth Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q3 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: Anticipated Impact
JSW Steel’s Digital Focus Areas Increased Sales Additional Focus s Mining Supply Safety, Security, Governance Cost Optimisation Chain Anticipated Impact Sustainability led R&D Asset Availability Primary Finance Focus Manufacturing Cultural Transformation Emissions Reduction s Integrated Control Towe
Slide 44: Agenda
Agenda Sustainability Strategy and Growth Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q3 FY24 Results Presentation 43
Slide 45: Quarterly Volumes – Standalone
Quarterly Volumes – Standalone Crude Steel Production Steel Sales +8% +5% YoY +6% YoY QoQ -4% QoQ 5.72 5.32 5.40 5.41 5.20 4.95 Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 All figures in million tonnes. JSW Steel Q3 FY24 Results Presentation Following the completion of JISPL merger with JSW Stee
Slide 46: Financials – Standalone
Financials – Standalone ₹ crore Particulars Q3 FY24 Q3 FY23 Q2 FY24 FY23 Revenue from Operations 33,310 30,935 33,738 1,31,687 Operating EBITDA 5,779 4,030 6,898 15,371 Other Income 386 315 429 1,572 Finance Cost 1,551 1,344 1,531 5,023 Depreciation 1,351 1,263 1,359 4,952 Exceptional Items Gain/(Lo
Slide 47: Financials – BPSL and JSW Steel Coated Products
Financials – BPSL and JSW Steel Coated Products BPSL Q3 FY24 Q3 FY23 Q2 FY24 FY23 Crude Steel Production (mt) 0.86 0.74 0.77 2.76 Steel Sales (mt) 0.70 0.68 0.80 2.51 Revenue from Operations (₹ crore) 5,030 4,998 5,817 20,077 Operating EBITDA (₹ crore) 780 341 745 1,805 Profit/(Loss) after Tax (₹ cr
Slide 48: Financials – US Operations
Financials – US Operations USA – Ohio Operations Q3 FY24 Q3 FY23 Q2 FY24 FY23 Production - Crude Steel (net tonnes) 2,67,666 91,962 1,51,313 5,88,976 Sales - Slab (net tonnes) 1,46,383 44,784 1,16,091 2,99,272 HRC (net tonnes) 56,355 43,936 59,136 2,77,939 Revenue from Operations (US$ mn) 141.55 65.
Slide 49: Financials – Piombino, Italy
Financials – Piombino, Italy Piombino, Italy Q3 FY24 Q3 FY23 Q2 FY24 FY23 Production – Rolled Products (Bars, Wire Rod & Rails) (tonnes) 95,871 68,359 61,520 2,80,354 Grinding Balls (tonnes) 5,789 9,816 3,212 48,409 Sales – Rolled Products (Bars, Wire Rod & Rails) (tonnes) 76,651 75,946 78,651 2,90,
Slide 50: THANK YOU
THANK YOU Investor Relations Contact: ir.jswsteel@jsw.in