Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q4 FY2019-20 Earnings Presentation
38 slides from Jsw Steel's earnings presentation, May 22, 2020
Slide 1: Exchange filing cover letter for investor/analyst presentation
JSWSL: SECT: MUM: SE: 2020-21 May 22, 2020 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 NSE
Slide 2: JSW Steel Limited Q4 FY 2019-20 Results Presentation
A Vision to Execute Better. Everyday. JSW Steel Limited Q4 FY 2019-20 Results Presentation May 22, 2020 1
Slide 3: FY 2019–20 - Highlights
FY 2019–20 - Highlights Crude Steel production: 16.06 million tonnes, implying 97% of FY 20 guidance despite COVID-19 related impact Saleable Steel Sales: 14.90 million tonnes Consolidated performance Operating EBITDA : ₹ 11,873 crore, PAT : ₹ 3,919 crore, Diluted Earnings Per Share: ₹16.67 /s
Slide 4: Key highlights – Q4 FY20
Key highlights – Q4 FY20 COVID-19 significantly impacted supply chain and operations, especially in the month of March 2020 Crude Steel production: 3.97 million tonnes Consolidated performance Saleable Steel Sales: 3.65 million tonnes Operating EBITDA : ₹ 2,975 crore PAT : ₹ 188 crore To
Slide 5: Agenda
Agenda Business Operational Financial Forward Guidance & Environment Performance Performance Projects Update 4
Slide 6: Global economy
Global economy GDP growth Forecasts (%YoY) IMF expects global GDP to contract by 3% in 2020, with further 9.2% CY 20 CY21 downside risks, amidst extreme uncertainty around the pandemic 7.4% 6.6% 5.8% and an abrupt halt of global economic activities 4.7% 4.7% 4.5% 3.0% 1.9% 1.2% Global growth exp
Slide 7: Global steel
Global steel Global Crude Steel production (mnt) China Steel Production and Export (mnt) 463 450 442 100 8.0 China Crude Steel Production (LHS) Exports (RHS) 80 6.0 255 246 234 60 208 204 209 4.0 40 2.0 20 China World World ex-China 0 0.0 Apr-17 Nov-17 Jun-18 Feb-19 Sep-19 Apr-20 Q3 CY19 Q4 CY19 Q1
Slide 8: Indian economy
Indian economy Total Vehicle Production vs. IIP COVID-19 severely impacted domestic economic activities and there is an IIP (YoY) (lhs) Total Vehicle Production ( '000s) (rhs) elevated level of uncertainty 2,700 India imposed one of the strictest form of “lock down” to contain the 3% pandemic. P
Slide 9: Indian steel- Q4 and FY20
Indian steel- Q4 and FY20 Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) -7.0% -5.0% 2.13 -36.9% 1.35 14.3% 2.15 2.46 0.21 29.06 0.62 0.47 27.01 26.38 25.07 1.93 0.93 1.69 1.84 0.41 Crude Steel Production Finished Steel Consumption Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY
Slide 10: Indian steel – trends
Indian steel – trends Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) -0.7% 2.5% -14.0% 3.69 -33.4% 2.46 1.57 1.35 1.11 0.28 27.20 27.01 0.62 25.07 0.93 24.46 1.29 2.58 1.84 0.41 Crude Steel Production Finished Steel Consumption Q3 FY20 Q4 FY20 Q3 FY20 Q4 FY20 Q3 FY20 Q4 FY20 F
Slide 11: JSW Group – COVID-19 response
JSW Group – COVID-19 response Committed INR 100 Crores (~$13.3m) to the PM-CARES Fund • Group covered 19 locations has assisted 150 • Conversion of a number of facilities across JSW villages with food security and sanitization drives Group locations to Isolation Wards, including remote areas like Sh
Slide 12: Agenda
Agenda Business Operational Financial Forward Guidance & Environment Performance Performance Projects Update 11
Slide 13: Quarterly volumes- standalone
Quarterly volumes- standalone Crude Steel Production Steel Sales -5% -1% -14% -8% YoY QoQ YoY QoQ 4.17 4.02 4.29 3.97 4.03 3.70 Q4 FY19 Q4 FY20 Q3 FY20 Q4 FY19 Q4 FY20 Q3 FY20 Q4 FY19 Q4 FY20 Q3 FY20 Q4 FY19 Q4 FY20 Q3 FY20 Flat 3.01 2.87 2.86 Flat 3.08 2.70 2.98 Long 0.99 0.95 0.89 Long 1.04 0.86 0
Slide 14: FY20 volumes- standalone
FY20 volumes- standalone Crude Steel Production Steel Sales -4% -4% YoY YoY 16.69 15.76 15.08 16.06 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 Flat 11.74 11.35 Flat 11.29 10.92 Long 3.87 3.72 Long 3.69 3.52 Semis 0.78 0.63 All figures are in million tonnes 13
Slide 15: Q4 FY20 sales highlights – consolidated
Q4 FY20 sales highlights – consolidated -15% -9% YoY QoQ 4.31^ 4.03^ 3.65^ 22% 13% 24% 3.37* 3.20* 53% 52% 50% 3.08* 12% 11% 11% 31% 28% 33% 16% 16% 16% 61% 56% 56% 34% 31% 32% Q4 FY19 Q4 FY20 Q3 FY20 Q4 FY19 Q4 FY20 Q3 FY20 OE Retail Auto Exports VA Special prodcuts Other products Sales volumes d
Slide 16: FY20 sales highlights – consolidated
FY20 sales highlights – consolidated 15.60^ -4% 14.90^ YoY 15% 13.19* 21% 11.78* 47% 52% 15% 12% 29% 31% 19% 15% 57% 55% 34% 33% FY19 FY20 FY19 FY20 OE Retail Auto Exports VA Special prodcuts Other products Sales volumes decreased by 4% driven by a weaker domestic demand o Substantially increased
Slide 17: Product approval status in Q4 FY20
Product approval status in Q4 FY20 GP250 (PPGI) JVHC140N (Tin Plate) D Grade (PPGL) Refrigerator Cabinet Cap Seal for Drums and Barrels Refrigerator U Shell JSC340H (CRCA) IS10748 (HRPO) DP780(CRCA) Hood Outer Steering column shaft tubes Automotive Part 46 new products were approved in FY20 16
Slide 18: Agenda
Agenda Business Operational Financial Forward Guidance & Environment Performance Performance Projects Update 17
Slide 19: Financials – standalone
Financials – standalone ` crore Particulars Q4 FY20 Q4 FY19# FY20 FY19# Revenue from operations 15,277 19,860 64,262 77,187 Operating EBITDA 3,220 4,392 12,517 18,513 Other Income 146 82 628 405 Finance Cost 954 1,000 4,022 3,789 Depreciation 929 884 3,522 3,421 Exceptional Items 1,309 - 1,309 - Pro
Slide 20: Operating EBITDA movement – standalone
Operating EBITDA movement – standalone ` crore 4,392 610 1,454 891 3,220 EBITDA Volume NSR Cost EBITDA Q4 FY19 Q4 FY20 19
Slide 21: Operational performance – JSW Steel Coated Products
Operational performance – JSW Steel Coated Products Million tonnes Volumes Q4 FY20 Q4 FY19 FY20 FY19 Production 0.44 0.43 1.77 1.74 Sales 0.47 0.49 1.86 1.79 ` crore Key P&L data Q4 FY20 Q4 FY19 FY20 FY19 Revenue from Operations 2,915 3,184 11,675 12,324 Operating EBITDA 91 86 550 393 Profit after T
Slide 22: Operational performance – US Plate & Pipe Mill
Operational performance – US Plate & Pipe Mill Production (net tonnes) Q4 FY20 Q4 FY19 FY20 FY19 Plate Mill 63,528 81,290 275,629 333,491 Utilization (%) 27% 34% 30% 35% Pipe Mill 15,193 22,996 68,701 73,260 Utilization (%) 11% 17% 12% 13% Sales (net tonnes) Q4 FY20 Q4 FY19 FY20 FY19 Plate Mill 55,2
Slide 23: Operational performance – Ohio, USA
Operational performance – Ohio, USA Operational (net tonnes) Q4 FY20 Q4 FY19 FY20 FY19* HRC Production 73,138 55,264 314,784 135,522 HRC Sales 72,888 59,660 300,923 126,791 USD mn Key P&L data Q4 FY20 Q4 FY19 FY20 FY19* Revenue from Operations 56.54 38.67 185.10 88.81 Operating EBITDA (20.19) (27.81
Slide 24: Operational performance – Piombino, Italy
Operational performance – Piombino, Italy Production (tonnes) Q4 FY20 Q4 FY19 FY20 FY19* Rolled Products (Bars, Wire Rod & 99,060 117,051 512,432 195,926 Rails) Grinding Ball 14,184 10,348 60,718 23,602 Sales (tonnes) Q4 FY20 Q4 FY19 FY20 FY19* Rolled Products 113,201 92,197 516,608 147,426 (Bars, W
Slide 25: Monnet Ispat and Energy (JV of AION Capital and JSW Steel)
Monnet Ispat and Energy (JV of AION Capital and JSW Steel) ` crore Key P&L data Q4 FY20 Q4 FY19 FY20 FY19* Revenue from Operations 617 533 2,638 1,130 Operating EBITDA 5 (44) (46) (17) Net Profit After Tax (104) (150) (492) (244) * since acquisition 24
Slide 26: Financials – consolidated
Financials – consolidated ` crore Particulars Q4 FY20 Q4 FY19 FY20 FY19 Revenue from operations 17,887 22,368 73,326 84,757 Operating EBITDA 2,975 4,440 11,873 18,952 Other Income 122 53 546 204 Finance Cost 1,036 1,046 4,265 3,917 Depreciation 1,108 1,084 4,246 4,041 Share of Profit/ (Loss) of join
Slide 27: Net debt movement – consolidated
Net debt movement – consolidated 1,906 ` crore 7,514 4,282 1,517 2,734 53,473 49,552 Net Debt* New Loan Taken Capex Repayments Fx Impact Movement in Net Debt* as on Dec '19 Acceptances Cash & Cash as on Mar '20 (beyond 1 year) Equivalents Particulars 31.03.2020 31.12.2019 31.03.2019 Net Debt (crore)
Slide 28: Q4 FY20 Standalone Results – Drivers of Performance
Q4 FY20 Standalone Results – Drivers of Performance Lower production given the impact of COVID-19 related lock down from last week of March 2020 Sales volumes decreased by 9% QoQ; weaker business sentiments in the latter half of March 2020 Volumes Domestic sales volumes grew by 3% QoQ Automo
Slide 29: Agenda
Agenda Business Operational Financial Forward Guidance & Environment Performance Performance Projects Update 28
Slide 30: Guidance for FY2021
Guidance for FY2021 16.06 16.00 15.08 15.00 FY20 FY21E FY20 FY21E Crude Steel Production Saleable Steel Sales All figures are in million tonnes 29
Slide 31: Rolling Capex Plan- Annual update
Rolling Capex Plan- Annual update ` crore 48,515 1 FY21 Capex 9,000 16,387 800 2 8,200 23,928 Announced Capex Capex Spent (FY18-20) FY21- FY21- Capex to be spent over (FY18-22) Project Capex Mining Capex FY22 & FY23 1. After adjusting savings of INR 200 crore 2. Excluding INR 1,200 crore of up front
Slide 32: FY 2021 – Key Strategic Priorities
FY 2021 – Key Strategic Priorities While COVID-19 has brought about significant challenges, the company is committed to its key strategic priroties in FY2021 Calibrate planned Capex to about ` 9,000 crores for FY2021 - cut back from earlier guidance of ` 16,340 crores. Priority to complete key s
Slide 33: Key Project Updates - Dolvi
Key Project Updates - Dolvi 5 to 10mtpa expansion Doubling steel making capacity from 5mtpa to 10mtpa To enhance capacity of flat products portfolio Commissioning during H2 FY21 Captive Power Installing 175 MW WHRB and 60 MW CPP to harness flue gases and steam from CDQ Commissioning during
Slide 34: Key Project updates- Vijayanagar
Key Project updates- Vijayanagar CRM1 complex capacity expansion (0.85mtpa to 1.80 mtpa) Two CGL lines of 0.45mtpa each New 1.2mtpa Continuous Pickling line Commissioning in phases during H2 FY21 Color Coating line (0.3mtpa) Commissioning by March 2021 Pellet plant 8 MTPA Pellet plant Pa
Slide 35: 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 Additional Tinplate Line at Tarapur (0.25mtpa)
Slide 36: JSW Steel Branded Portfolio
JSW Steel Branded Portfolio 35
Slide 37: 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 38: Thank you
Thank you IJSW Sicel