Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q1 FY25 Earnings Presentation
50 slides from Jsw Steel's earnings presentation, Jul 19, 2024
Slide 1: Exchange filing cover letter
Ref: JSWSL: SEC: Mum: 2024-25 July 19, 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.500228
Slide 2: Q1 FY25 Results Presentation
Q1 FY25 Results Presentation 19 July 2024 STEERING THE FUTURE 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 Business Environment 14 Operational Performance 19 Financial Performance 27 Project Updates 34 Digitalisation at JSW Steel 37 Appendix 40 JSW Steel Q1 FY25 Results Presentation / 3
Slide 5: Key Highlights – Q1 FY25
Key Highlights – Q1 FY25 • Revenue from Operations: ₹42,943 crore in Q1 • Operating EBITDA: ₹5,510 crore in Q1 Consolidated • Net Profit: ₹867 crore in Q1 Performance • Net Debt to Equity: 0.97x and Net Debt to EBITDA1: 3.00x • Average India capacity utilization of 87% in Q1 • Consolidated crude ste
Slide 6: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q1 FY25 Results Presentation / 5
Slide 7: Sustainability at JSW Steel
Sustainability at JSW Steel Governance & Oversight by Board-level Business Responsibility & Sustainability Committee Climate Change Energy Our Resources Indigenous People Cultural Heritage Business Ethics Water Resources Focus Waste Employee Wellbeing Local Considerations Human Rights Supply Chain W
Slide 8: Our Commitments: No harm to People, Environment & Society
Our Commitments: No harm to People, Environment & Society Water Security Circularity & Biodiversity Maintaining zero liquid discharge Promoting Circular Economy 39% reduction in specific water consumption to 2.21 m3/tcs by Focus on ‘Zero waste to Landfill’ FY30 Adopting digitalisation for better ‘No
Slide 9: Targeting Net Neutral by 2050: Decarbonization Agenda
Targeting Net Neutral by 2050: Decarbonization Agenda Phase-I Two Phases, Two Milestones Phase-II 2030 2050 1.95tCO2/tcs Net Neutral in 42% from base year Carbon emissions Strategic Levers Strategic Levers Energy Efficiency Use of syngas and TGR1 in BF (Carbon Circularity) Process efficiency - SEED
Slide 10: Building a Strong Health & Safety Culture
Building a Strong Health & Safety Culture JSW Steel’s Vision 000 Safety Highlights Zero • Digitally Connected Workers Solution: ‘Rakshak’ Zero Zero cards issued to 2,500 workmen at Dolvi plant to major injury harm enhance workplace safety (see Digitalisation incidents section for further details) LT
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 2.52 2.49 2.50 2.48 6.38 2.44 2.36 6.04 2.45 2.45 5.81 2.41 2.39 5.66 5.68 2.34 FY20 FY21 FY22 FY23 FY24 Q1FY25 FY20 FY21 FY22 FY23 FY24 Q1FY25 FY20 F
Slide 12: Our Commitment to Society
Our Commitment to Society Key Intervention Areas Water, Agriculture Health & Agriculture Environment & Nutrition Sanitation Waste 50,000 farmers Skill Covered under Agri livelihood Education Management Development initiatives Art, Culture Sports & Heritage 31,000+ farmers Provided with quality farm
Slide 13: Our Commitment to Society
Our Commitment to Society Skill Development Sports • Employment linked skills training in hospitality sector Focus on nurturing sporting talent across India initiated at Bellary, Karnataka via multiple initiatives across schools • 30,000 trainees (72% women) enrolled in five cohorts of Skill Impact
Slide 14: Sustainability Initiatives & Recognitions
Sustainability Initiatives & Recognitions Vijayanagar Achieves GreenCo Platinum Rating Great Place to Work Vijayanagar awarded the GreenCo Platinum rating by the CII-Godrej Green Business Centre (GBC) Verdantix EHS Innovation Excellence Awards EMEA 2024 JSW Steel winner in the Environmental Impact,
Slide 15: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q1 FY25 Results Presentation / 14
Slide 16: Global Economy
Global Economy GDP Growth Forecasts (%YoY) • Global growth forecast remains broadly stable vs 2023. CY24F (as of April 24) CY24F (July 24) CY25F (July 24) Disinflation progressing gradually and improvement in global manufacturing PMI continues. Geopolitical risks need to be 7.0% 6.8% 6.5% watched. H
Slide 17: Global Steel
Global Steel Crude Steel Production – Jan-May (mt) Finished Steel Demand (mt) China Steel Production and Export (mt) Jan-May CY22 Jan-May CY23 Jan-May CY24 CY23 CY24F (as of Oct 23) CY24F (Apr 24) CY25F (Apr 24) 150 12 China Crude Steel Production (LHS) -0.1% +1.7% 10 Exports (RHS) 100 8 -1.4% 1,849
Slide 18: Indian Economy
Indian Economy PMI – Manufacturing & Services Mfg. Capacity Utilisation % (4 quarter MA) • Robust trend in GDP growth to continue, RBI projects FY25 growth PMI Manufacturing PMI Services Avg. (FY16-20) at 7.2%. Q1 faced headwinds of heat wave conditions and 65 75.0 slowdown in public capex 60 55 74.
Slide 19: Indian Steel
Indian Steel Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q1 FY24 Q4 FY24 Q1 FY25 Finished Semis Finished Semis +15.9% +4.6% +14.9% 3.05 YoY YoY 2.61 37.33 36.61 0.34 36.22 35.42 0.34 2.12 -18.9% 2.33 -51.1% 35.0 0.26 QoQ 0.28 QoQ 30.80 1.66 0.23 1.49 2.27 +27.5% 2.71 0.21 -
Slide 20: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q1 FY25 Results Presentation / 19
Slide 21: Q1 FY25 Volumes – JSW Steel Consolidated
Q1 FY25 Volumes – JSW Steel Consolidated Crude Steel Production Steel Sales -1% +7% YoY YoY -9% -6% QoQ QoQ 6.79 6.43 6.35 6.73 6.12 5.71 Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 Indian Operations 6.19 6.54 6.12 Indian Operations 5.47 6.48 5.90
Slide 22: Q1 FY25 Sales: JSW Steel – Indian Operations
Q1 FY25 Sales: JSW Steel – Indian Operations Domestic Sales by Customer Segment Value-Added and Special Products 4.65mt 5.16mt +14% YoY % of Total 61% 62% 64% 5.31mt +3% QoQ Sales 4.05 3.81 38% 39% 36% Retail 3.34 14% 13% Auto 13% 15% 17% 18% Industrial 34% 32% 33% Construction & Infra Q1 FY24 Q4 FY
Slide 23: Retail Segment & Branded Stores: Indian Operations
Retail Segment & Branded Stores: JSW Steel Consolidated – Indian Operations Retail Sales (in kt) Branded Stores (number of outlets) +8% YoY 2,152 51 new -5% 93 branded stores QoQ added in new 1,993 1,437 towns and 42 in 1,896 1,761 existing towns 78 1,043 970 919 715 2,059 15 1,359 843 949 926 700 Q
Slide 24: Q1 FY25 Production & Sales
Q1 FY25 Production & Sales In million metric tonnes Particulars Crude Steel Production Sales Q1 FY25 Q1 FY24 YoY Q1 FY25 Q1 FY24 YoY Consolidated India Operations 6.12 6.19 -1% 5.90 5.47 8% USA – Ohio Operations 0.23 0.24 -5% 0.22 0.23 -7% JSW Steel Consolidated Operations 6.35 6.43 -1% 6.12 5.71 7%
Slide 25: Grades/Products Approved in Q1 FY25
27 Grades/Products Approved in Q1 FY25 Cold Rolled Steel for Automotive, Special Alloy Steel for Railways and Hot Rolled Steel for General Engineering Applications Tubes for 2W Frames Railway Wagon (ISC44OW – CR) (E250A Cu, E450Br Cu & E350C – HR) Crash Parts: Front Bumper & B-pillar (SPFC780DP – CR
Slide 26: JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions
JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions JSW One Partner Online Shop Ecosystem • One of India’s leading integrated B2B commerce platforms catering to buying needs of MSMEs Product E-connect search • Offers building material products, logistics and credit solution forums Man
Slide 27: 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 Q1 FY25 58,700 Registered customers Steel Cement 3,40,000 MT 30,400 MT 5,400 Transacted customers base Up 4.2x Up 2.6x YoY YoY GMV (₹ Cr)
Slide 28: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q1 FY25 Results Presentation / 27
Slide 29: Financials – Consolidated
Financials – Consolidated ₹ crore Particulars Q1 FY25 Q1 FY24 Q4 FY24 FY24 Revenue from operations 42,943 42,213 46,269 1,75,006 Operating EBITDA 5,510 7,046 6,124 28,236 Other Income 164 331 242 1,004 Finance Cost 2,073 1,963 2,062 8,105 Depreciation 2,209 1,900 2,194 8,172 Share of Profit/ (Loss)
Slide 30: Q1 FY25 Consolidated Results – Drivers of Performance
Q1 FY25 Consolidated Results – Drivers of Performance • Consolidated crude steel production of 6.35mt, down 1% YoY and 6% QoQ due to planned maintenance shutdowns at Dolvi and BPSL Volumes • Capacity utilization of 87% at Indian operations • Total sales volumes at 6.12mt, up 7% YoY but down 9% QoQ o
Slide 31: Consolidated EBITDA Movement – Q1 FY25 vs. Q4 FY24
Consolidated EBITDA Movement – Q1 FY25 vs. Q4 FY24 ₹ crore 6,124 319 43 5,510 528 264 185 EBITDA Volume NSR Cost Overseas Consol Adj. EBITDA Q4 FY24 Subsidiaries Q1 FY25 30 JSW Steel Q1 FY25 Results Presentation / 30
Slide 32: Financials – Indian Operations
Financials – Indian Operations ₹ crore JSW Steel – India Q1 FY25 Q1 FY24 Q4 FY24 FY24 Crude Steel Production (mt) 6.12 6.19 6.54 25.55 Steel Sales (mt) 5.90 5.47 6.48 23.96 Revenue from Operations 40,537 38,745 43,158 1,63,409 Operating EBITDA 5,417 6,461 5,889 27,007 Profit/(Loss) after Tax 1,156 2
Slide 33: Consolidated Net Debt Movement
Consolidated Net Debt Movement ₹ crore 11,386 80,199 73,916 3,373 8,325 151 Net Debt New Repayments Forex Impact Movement Net Debt Mar'24 Loans Taken in Cash Jun'24 Particulars 30.06.2024 31.03.2024 30.06.2023 Net Debt (₹ Cr) 80,199 73,916 66,797 Cash & Cash Equivalents (₹ Cr) 9,217 12,590 13,466 Ne
Slide 34: 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 3.75x 1.17x 3.20x Bonds and 0.97x 2.61x 3.00x 0.83x 0.89x 0.93x 2.62x INR debt, debentures, Foreign 1.45x 44% 32% currency debt
Slide 35: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q1 FY25 Results Presentation / 34
Slide 36: Key Project Updates – Vijayanagar
Key Project Updates – Vijayanagar 5mtpa Expansion Under Commissioning • HSM commercial production and sales commenced in March 2024 • Sinter Plant and BF commissioning by end of July. SMS to be commissioned by end of August 2024 • Ramp-up expected by end of Q3 FY25 BF Control Room Coke Oven Plant •
Slide 37: Key Project Updates – BPSL, Dolvi & Others
Key Project Updates – BPSL, Dolvi & Others BPSL Phase-II Expansion from 3.5 to 5 MTPA • Major equipment and facilities commissioned • The oxygen plant is scheduled for commissioning in July 2024 • Gradual ramp-up to 4.5mtpa expected by Q3 FY25 • Balance 0.5mtpa capacity will be achieved through debo
Slide 38: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q1 FY25 Results Presentation / 37
Slide 39: Digitalization at JSW Steel
Digitalization at JSW Steel Increased Sales Manufacturing Manufacturing Manufacturing Supply Supply Chain Chain ADDITIONAL FOCUS Cost Optimisation Safety, Security, ANTICIPATED IMPACT Governance Asset Availability Finance Primary Mining Mining Sustainability Finance Focus led R&D Emissions Reduction
Slide 40: Project Rakshak: Enhancing Workplace Safety
Project Rakshak: Enhancing Workplace Safety Connected Work Force Key Technology Levers Flagship digital workplace safety improvement program which tracks the well being of all Location Information employees within the plant premises in real-time Deployed through distribution of SafePass card to all
Slide 41: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q1 FY25 Results Presentation / 40
Slide 42: 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 43: JSW Steel: Growth Path
JSW Steel: Growth Path 3 India Capacity U.S. Capacity Vijayanagar JISPL Dolvi BPSL 35.7 43.5 51.5 2 1.5 8.0 50.0 0.5 1.5 2.0 5.0 42.0 1.5 0.3 Growth Options in the Portfolio 36.2 34.2 Organic • Brownfield growth potential of ~5mt at each of Vijayanagar and BPSL • 4mt brownfield Green Steel in 2 phas
Slide 44: JSW Steel: Transforming Scale and Profitability
JSW Steel: Transforming Scale and Profitability India Capacity (mt) U.S. Capacity (mt) EBITDA (₹ cr) Share of 25% 53% 61%3 VASP1 55 51.5 50 1.5 35000 3 50.0 45 ₹28,236cr 43.5 1.5 30000 40 42.0 35.7 25000 35 1.5 ₹18,952cr 2 30 6.0 20000 25 28.2 15000 ₹9,165cr 19.5 20 1.5 10000 15 18.0 14.3 5000 10 5
Slide 45: Quarterly Volumes – Standalone
Quarterly Volumes – Standalone Crude Steel Production Steel Sales +3% -3% YoY YoY -7% -11% QoQ QoQ 5.69 5.69 5.44 5.30 4.93 5.09 Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 All figures in million tonnes. Following the completion of JISPL merger with JSW Steel, volumes for JISPL have been include
Slide 46: Financials – Standalone
Financials – Standalone ₹ crore Particulars Q1 FY25 Q1 FY24 Q4 FY24 FY24 Revenue from Operations 32,654 32,791 35,341 1,35,180 Operating EBITDA 4,275 4,861 4,442 21,980 Other Income 396 438 451 1,704 Finance Cost 1,590 1,457 1,569 6,108 Depreciation 1,460 1,265 1,460 5,435 Exceptional Items - - (240
Slide 47: Financials – BPSL and JSW Steel Coated Products
Financials – BPSL and JSW Steel Coated Products BPSL Q1 FY25 Q1 FY24 Q4 FY24 FY24 Crude Steel Production (mt) 0.78 0.74 0.81 3.18 Steel Sales (mt) 0.75 0.69 0.78 2.96 Revenue from Operations (₹ crore) 5,564 5,474 5,572 21,893 Operating EBITDA (₹ crore) 670 703 536 2,765 Profit/(Loss) after Tax (₹ cr
Slide 48: Financials – US Operations
Financials – US Operations USA – Ohio Operations Q1 FY25 Q1 FY24 Q4 FY24 FY24 Production - Crude Steel (net tonnes) 2,53,169 2,67,896 2,75,822 9,62,697 Sales - Slab (net tonnes) 1,90,534 1,81,164 2,03,733 6,47,371 HRC (net tonnes) 47,398 75,199 67,801 2,58,492 Revenue from Operations (US$ mn) 166.23
Slide 49: Financials – Piombino, Italy
Financials – Piombino, Italy Piombino, Italy Q1 FY25 Q1 FY24 Q4 FY24 FY24 Production – Rolled Products (Bars, Wire Rod & Rails) (tonnes) 66,580 97,933 65,918 3,21,242 Grinding Balls (tonnes) 10,477 11,297 8,558 28,856 Sales – Rolled Products (Bars, Wire Rod & Rails) (tonnes) 61,301 73,833 71,476 3,0
Slide 50: THANK YOU
49 THANK YOU Investor Relations Contact: ir.jswsteel@jsw.in JSW Steel Q1 FY25 Results Presentation /