Jsw Steel Limited · NSE:JSWSTEEL

Jsw Steel — Q2 FY2021 Earnings Presentation

31 slides from Jsw Steel's earnings presentation, Oct 23, 2020

  1. Slide 1: Exchange filing cover letter

    Pav . « Jaw Jazw 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 » wwwjsw.in JSWSL: SECT: MUM: SE: 2020-21 October 23, 2020 1. | National Stock Exchange of India Ltd.

  2. Slide 2: JSW Steel Limited Q2 FY 2020-21 Results Presentation

    JSW Steel Limited Q2 FY 2020-21 Results Presentation October 23, 2020 1

  3. Slide 3: Key highlights – Q2 FY21

    Key highlights – Q2 FY21  Revenue from operations : ₹ 19,264 crore Consolidated  Operating EBITDA : ₹ 4,414 crore performance  Net Profit/(Loss) : ₹ 1,595 crore  Net Debt to Equity : 1.43x and Net Debt to EBITDA : 4.73x  Operated at 86% average utilization vs 66% in Q1 FY21 Operational  Fully

  4. Slide 4: Agenda

    Agenda Business Operational Financial Forward Guidance & Environment Performance Performance Projects Update 3

  5. Slide 5: Global economy

    Global economy GDP growth Forecasts (%YoY)  IMF revised CY20 Global GDP to contract by 4.4% (5.2% earlier). CY20F (June-20) CY20F (Oct-20) CY21F (Oct-20) Global growth expected to rebound and increase by 5.2% in CY21 on the back of swift policy measures 3.9% 3.1% 8.8% 2.3% 8.2% 5.2% 6.0% 1.0% 1.9%

  6. Slide 6: Global steel

    Global steel Steel Demand (mt) China Steel Production and Export* (mt) 100 8 2019 2020F (June-20) 2020F (Oct-20) China Crude Steel Production (LHS) Exports (RHS) -42 80 6 +72 -114 -6.4% -2.4% 60 1,767 1,654 1,725 4 40 1.0% 8.0% -14.2% -13.3% 2 908 917 980 859 20 737 745 0 0 Mar-18 Mar-19 Mar-20 Sep-

  7. Slide 7: Indian economy

    Indian economy IIP - Use Based (Consumer)  Broad based economic recovery is underway- Business Durables Non-Durables sentiments improved substantially over the recent months. 160 Manufacturing PMI prints activities reflects strong rebound, 140 120 while service sector is gradually stabilizing 100 8

  8. Slide 8: Indian steel - Quarterly

    Indian steel- Quarterly Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) -3.8% -9.9% 70.0% 2.31 -63.2% 3.20 5.44 0.09 27.12 0.85 2.16 26.10 26.22 23.63 0.60 2.22 0.08 3.28 2.60 0.77 Crude Steel Production Finished Steel Consumption Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21

  9. Slide 9: Agenda

    Agenda Business Operational Financial Forward Guidance & Environment Performance Performance Projects Update 8

  10. Slide 10: Quarterly volumes - standalone

    Quarterly volumes- standalone Crude Steel Production Steel Sales -% 30% 14% 47% YoY QoQ YoY QoQ 3.84 3.85 4.12 2.96 3.60 2.80 Q2 FY20 Q2 FY21 Q1 FY21 Q2 FY20 Q2 FY21 Q1 FY21 Q2 FY20 Q2 FY21 Q1 FY21 Q2 FY20 Q2 FY21 Q1 FY21 Flat 2.71 2.84 2.05 Flat 2.58 3.12 1.99 Long 0.82 0.77 0.45 Long 0.85 0.77 0.4

  11. Slide 11: Half Yearly volumes - standalone

    Half Yearly volumes- standalone Crude Steel Production Steel Sales -16% -6% YoY YoY 8.08 7.35 6.81 6.92 H1 FY20 H1 FY21 H1 FY20 H1 FY21 H1 FY20 H1 FY21 H1 FY20 H1 FY21 Flat 5.25 5.11 Flat 5.62 4.89 Long 1.78 1.23 Long 1.87 1.22 Semis 0.33 0.58 All figures are in million tonnes 10

  12. Slide 12: Quarterly sales highlights – consolidated

    Quarterly sales highlights – consolidated 17% 49% YoY QoQ 3.56^ 4.15^ 2.79^ 28% 31% 3.00* 54% 49% 62% 2.47* 13% 57% 12% 29% 15% 31% 1.21* 13% 58% 7% 12% 57% 26% 33% 36% 67% 26% Q2 FY20 Q2 FY21 Q1 FY21 Q2 FY20 Q2 FY21 Q1 FY21 OE Retail Auto Exports VA Special prodcuts Other products  Overall sales v

  13. Slide 13: Product approval status in Q2 FY21

    Product approval status in Q2 FY21 High Strength Steel (HSS) & Advance High Strength Steel (HSS) 2 grade for automotive - Load bearing, Safety parts & Crash parts. 1 1. Front Frame & Axle (SAPH440,JSH490R,JSH540 – HRPO) 2. A Pillar, Rocker, Reinforcement (SPC980DUB - CRCA) A special product @ Hybrid

  14. Slide 14: Product approval status in Q2 FY21 (continued)

    Product approval status in Q2 FY21 (continued) Special forging alloy steel grade for auto OEMs, with better hardening characteristics 5. Differential Case (SAE1141M) 5 6. Crankshaft (Cr38+N2) 7. Gears(18CrNiMo7-6) 6 Bearing grade auto Wind Mill, with better specific steel purity characteristics 8. B

  15. Slide 15: Agenda

    Agenda Business Operational Financial Forward Guidance & Environment Performance Performance Projects Update 14

  16. Slide 16: Financials – standalone

    Financials – standalone ` crore Particulars Q2 FY21 Q2 FY20 Q1 FY21 Revenue from operations 16,797 15,520 10,293 Operating EBITDA 4,176 2,796 1,429 Other Income 151 188 154 Finance Cost 885 1,075 933 Depreciation 924 874 867 Profit before Tax 2,518 1,035 (217) Tax Expenses / (Credit) 826 (1,882) (71

  17. Slide 17: Operating EBITDA movement – standalone

    Operating EBITDA movement – standalone ` crore 529 4,176 1,546 672 1,429 EBITDA Volume NSR Cost EBITDA Q1 FY21 Q2 FY21 16

  18. Slide 18: Operational performance – JSW Steel Coated Products

    Operational performance – JSW Steel Coated Products Million tonnes Volumes Q2 FY21 Q2 FY20 Q1 FY21 Production 0.51 0.42 0.30 Sales 0.61 0.43 0.33 ` crore Key P&L data Q2 FY21 Q2 FY20 Q1 FY21 Revenue from Operations 3,782 2,788 2,049 Operating EBITDA 288 153 28 Profit after Tax 172 157 (31) 17

  19. Slide 19: Operational performance – US Plate & Pipe Mill

    Operational performance – US Plate & Pipe Mill Production (net tonnes) Q2 FY21 Q2 FY20 Q1 FY21 Plate Mill 54,137 58,106 57,035 Utilization (%) 22% 25% 23% Pipe Mill - 15,746 4,175 Utilization (%) - 11% 3% Sales (net tonnes) Q2 FY21 Q2 FY20 Q1 FY21 Plate Mill 51,719 53,333 53,210 Pipe Mill 447 7,020

  20. Slide 20: Operational performance – Ohio, USA

    Operational performance – Ohio, USA Operational (net tonnes) Q2 FY21 Q2 FY20 Q1 FY21 HRC Production 4,501 87,337 26,954 HRC Sales 20,837 98,063 48,865 USD mn Key P&L data Q2 FY21 Q2 FY20 Q1 FY21 Revenue from Operations 18.43 49.58 29.39 Operating EBITDA (10.52) (31.56) (12.54) Net tonnes = 0.907 met

  21. Slide 21: Operational performance – Piombino, Italy

    Operational performance – Piombino, Italy Production (tonnes) Q2 FY21 Q2 FY20 Q1 FY21 Rolled Products (Bars, Wire Rod & Rails) 61,919 116,547 72,406 Grinding Ball 10,713 14,350 12,725 Sales (tonnes) Q2 FY21 Q2 FY20 Q1 FY21 Rolled Products (Bars, Wire Rod & Rails) 50,622 117,875 73,801 Grinding Ball

  22. Slide 22: JSW Ispat Special Products Ltd

    JSW Ispat Special Products Ltd (JV of AION Capital and JSW Steel) ` crore Key P&L data Q2 FY21 Q2 FY20 Q1 FY21 Revenue from Operations 955 660 595 Operating EBITDA 62 (1) (35) Net Profit After Tax 241 (114) (154) 21

  23. Slide 23: Financials – consolidated

    Financials – consolidated ` crore Particulars Q2 FY21 Q2 FY20 Q1 FY21 Revenue from operations 19,264 17,572 11,782 Operating EBITDA 4,414 2,731 1,341 Other Income 152 156 132 Finance Cost 959 1,127 1,016 Depreciation 1,149 1,057 1,047 Share of Profit/ (Loss) of Joint Ventures 47 (15) (53) Profit Bef

  24. Slide 24: Net debt movement – consolidated

    Net debt movement – consolidated ` crore 54,527 841 2,980 52,892 1,090 586 Net Debt* New Loan Taken Repayments Fx Impact Movement in Cash Net Debt* as on June '20 & Cash Equivalents as on Sep '20 Particulars 30.09.2020 30.06.2020 30.09.2019 Net Debt (crore) 52,892 54,527 49,640 Cash & cash equivalen

  25. Slide 25: Q2 FY21 Results – Drivers of Performance

    Q2 FY21 Results – Drivers of Performance  Operated at 86% capacity utilization vs 66% in Q1 Volumes  Sales volumes higher by 49% QoQ; on the back of strong recovery in domestic demand  Net sales realization increased by 11% QoQ, driven by higher steel prices, higher proportion of Realisation dome

  26. Slide 26: Agenda

    Agenda Business Operational Financial Projects Environment Performance Performance Update 25

  27. Slide 27: Key Project updates - Dolvi

    Key Project updates-Dolvi 5 to 10 mtpa expansion  Doubling steel making capacity from 5 mtpa to 10 mtpa- To enhance capacity of flat products portfolio  Captive Power-175 MW WHRB and 60 MW CPP to harness flue gases and steam from CDQ  Coke oven Phase 2-Second line of 1.5 mpta coke oven battery al

  28. Slide 28: Key Project updates - Vijayanagar

    Key Project updates- Vijayanagar CRM1 complex capacity expansion (0.85 mtpa to 1.80 mtpa)  Two CGL lines of 0.45 mtpa each  New 1.2mtpa Continuous Pickling line  Commissioning in phases during H2 FY21 Color Coating line (0.3 mtpa)  Commissioning by March 2021 Coke Oven plant  1.5 mtpa Coke Oven

  29. Slide 29: Key Project updates - others

    Key Project updates- others Vasind and Tarapur: Downstream projects  Modernisation-cum-capacity enhancement projects  Increase in GI/GL capacity by 1.08 mtpa  Increase in colour coating capacity by 0.28 mtpa  Commissioning in phases during H2 FY21 Kalmeshwar- Capacity enhancement of PPGL by 0.22

  30. Slide 30: JSW Steel Branded Portfolio

    JSW Steel Branded Portfolio 29

  31. Slide 31: 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

JSW Steel — Q2 FY2021 Earnings Presentation on 6ix