Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Q3 FY2024 Earnings Presentation
42 slides from Jindal Steel's earnings presentation, Jan 31, 2024
Slide 1: Exchange intimation letter under Regulation 30
January 31, 2024 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, 5th Floor, 1st Floor, New Trading Ring, Plot No. C/1, G Block Rotunda Building, P J Towers, Bandra-Kurla Complex, Bandra (E), Dalal Street, Fort, Mumbai – 400 001 Mumbai-400051 co
Slide 2: Q3FY24 Earnings Presentation
Jindal Steel & Power Q3FY24 Earnings Presentation 31st Jan 2024
Slide 3: Safe Harbour Statement
Safe Harbour Statement This presentation may contain certain forward looking statements concerning steel sector, economy and JSP’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those
Slide 4: Building a nation of our dreams
Building a nation of our dreams OVER 3 DECADES OF EXCELLENCE JSP is focused towards building world-class capabilities to make India self-reliant and a global economic powerhouse
Slide 5: Company Snapshot
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives Q3FY24 Results Project Update
Slide 6: JSP at a Glance
JSP at a Glance Growth Scaling up world-class, Innovative, value-added products High performance, integrated steel production to support India’s infrastructure customer-centric culture Focussed capacity creation Strong Net Debt/EBITDA at 0.92x Expansion program to boost Targeting Net Debt / EBITDA F
Slide 7: Company Snapshot
Integrated Value Chain World-class Assets Mining Iron Making Liquid Steel Finished Steel 10.42 MTPA 16.82 MTPA 9.6 MTPA 15.9 MTPA 7.25 MTPA 13.75 MTPA Company Snapshot Iron-ore: Coal: Plate Mill 2.5 MTPA 3.0 MTPA Direct Reduce Iron (DRI) Steel Melting Shop (SMS) Tensa 3.11 MTPA Gare Palma IV/6 4 MTP
Slide 8: Macro and Sectoral Update
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives Q3FY24 Results Project Update
Slide 9: Despite global weakness, India steel demand continues to remain robust
Despite global weakness, India steel demand continues to remain robust World China India 1850 4% 940 4% 140 9% 9% 10% 2% 2% 2% 8% 1825 2% 2% 130 8% Macro and Sectoral Update 930 0% 6% 1800 -3% 0% -4% 0% 120 920 4% 1775 -2% -2% 1849 1783 1815 110 921 939 939 2% 136 116 126 1750 -4% 910 -4% 100 0% CY2
Slide 10: Chinese steel exports at 7-year high driven by lower domestic demand
Chinese steel exports at 7-year high driven by lower domestic demand Crude Steel Production Steel Demand (Apparent Steel Consumption) 1100 12% 1100 11% 11% 12% 9% 8% 8% 1000 7% 9% 1000 8% Macro and Sectoral Update 6% 5% 900 1% 4% 900 6% 3% 0% -1% 800 3% 800 -3% -3% 0% 1% -2% -2% -2% -5% -1% 700 -4%
Slide 11: India's steel demand grew at 1.8x of Real GDP growth in FY23
India’s steel demand grew at 1.8x of Real GDP growth in FY23 Crude Steel Production Finished Steel Consumption Crude Steel Capacity and Utilisation % 140 20% 140 15% 165 85% CAGR: 4% CAGR: 6% 13% CAGR: 3% 16% 11% Macro and Sectoral Update 120 160 15% 120 9% 8% 10% 155 79% 80% 100 78% 78% 10% 100 8%
Slide 12: India Steel Scenario
India Steel Scenario Crude Steel production grew 12% Crude Steel Production Finished Steel Consumption YoY during Q3FY24 to 35.98mt and Fig in Million Tonnes +14% Fig in Million Tonnes +15% 14% YoY during 9MFY24 to 106.13mt Macro and Sectoral Update 106.13 99.99 93.16 87.14 Finished steel consum
Slide 13: Key Steel and RM Prices Trend
Key Steel and RM Prices Trend India HRC vs Rebar Domestic Pellet prices (Barbil) Fig in `/tonnes Fig in `/tonnes 76,500 14000 Indian Steel Prices 80,000 Macro and Sectoral Update 12550 moderated in Q3FY24 75,000 12000 70,000 73,500 HRC premium over TMT 65,000 9750 9500 turned positive in Dec 100
Slide 14: Business Update
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives Q3FY24 Results Project Update
Slide 15: Focused Capacity Expansion
Focused Capacity Expansion Scaling-up for Market Leadership Growth Capex Breakup (INR Cr) Share of Capex Categories 31,000 Coal Mines 3,000 ACPP-II Business Update 1,800 5% 23,200 3,000 10% Existing Capex New Projects* JSO Angul 10% 75% Existing Capex ACPP-II Coal Mines New Projects* Total JSO Angul
Slide 16: Recent Highlights
Recent Highlights Commissioned state-of-the-art International EPD® System Started/ Scaling up production Business Update Hot Strip Mill in record time certifications for Green Steel from Coal Mines Received EPD Certifications for Steel Commenced production from The advanced HSM supplied by Pla
Slide 17: Building the Future: Key Projects Shaping the Nation
Building the Future: Key Projects Shaping the Nation Business Update 16
Slide 18: Celebrating Excellence – Rewards and Recognitions
Celebrating Excellence – Unveiling Rewards and Recognitions Business Update Marketing Best TMT Brand: Best Brand of Best Rail Excellence in the ET Ascent the Year 2023 Manufacturer of Iron and Steel Business Leader - ET Edge: Year 2023: Industry of the Year Jindal Panther M.R.S. Conference World Mar
Slide 19: Strategically Aligned for Supply in Thriving Sectors
Strategically Aligned for Supply in Thriving Sectors Shipbuilding Defense Railways & Metros Key Products Key Products Key Products Shipbuilding Grade Plates Quenched & Tempered Plates Rails, Plates, Rebars Business Update JSP Initiatives JSP Initiatives JSP Initiatives • Specialty Grades DMR, DNV, A
Slide 20: Strategically Aligned for Supply in Thriving Sectors
Strategically Aligned for Supply in Thriving Sectors Infrastructure & Building Building & Construction Renewables Key Products Key Products Key Products Plates, Rebar, Structures Plates, Rebar, Structures Plates, Rebar, Structures Business Update JSP Initiatives JSP Initiatives JSP Initiatives • Low
Slide 21: Strategic Value Integration for Retail Triumph
Strategic Value Integration for Retail Triumph Strategic Positioning in Contagious & High growth Market Retail Connect 9069 Rewards program designed for influencers # of influencers enrolled 6843 Business Update App based Points never expire 4554 Dream Gift 3241 2479 2535 Tier multiplier 2209 2450 1
Slide 22: Expanding Horizons: New geographies & Value-added Products
Expanding Horizons: New geographies & Value-added Products Driving growth through Strategic Export Initiatives Export Footprint 80+ Countries Business Update New • Mexico Geographies • Poland added • South Korea New Products/Value added Grade Exports • Shipbuilding Plates • Offshore Wind tower grade
Slide 23: Sector wise & Value Added Sales
Sector wise & Value Added Sales Domestic Sales Q3FY24 Value Added Product/Grade Sales as Business Update 4% percentage of Total 11% 67% 65% 40% 62% 13% 33% Infra Trade/ Retail B&C Engg & Packaging Automotive Q3'23 Q2'24 Q3'24 Note: Value added Product/Grade include Hight tensile, Heat-treated Plates
Slide 24: Social Initiatives
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives Q3FY24 Results Project Update
Slide 25: Awards & Recognitions
Awards & Recognitions OTV Business Odisha Awards- National CSR Award, by 2023 by OTV Network Ministry of Corporate Affairs, Times Business Award for Social Initiatives GoI (announced in Aug 22) Sustainable Rural Health Care by Times of India • CSR in Aspirational Districts/Difficult Terrains in East
Slide 26: Empowering our Communities
Empowering our Communities Social Initiatives HEALTH & NUTRITION EDUCATION SKILL EDUCATION VATSALYA aims to reduce Infant Mortality Rate and Maternal YASHASVI aims to educate young women and girls from an O.P. JINDAL COMMUNITY COLLEGES at Angul, Mortality Rate. Benefitted 23459 women and infants in
Slide 27: Empowering our Communities
Empowering our Communities Social Initiatives LIVELIHOOD ART AND CULTURE SOCIAL INCLUSION • 108ft Monumental Flag of India was Hoisted at Ravenshaw JINDAL PRAYAS CENTRE OF EXCELLENCE provides state-of-art JINDAL VET SEVA JSP has Flag-off “Jindal Vet University Campus In Odisha's Cuttack by Esteemed
Slide 28: Q3FY24 Results
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives Q3FY24 Results Project Update
Slide 29: Q3FY24 Highlights - Consolidated and Standalone
Q3FY24 Highlights - Consolidated Gross revenue* Adjusted EBITDA# Adj. EBITDA per ton PAT Net Debt Net Debt to EBITDA Q3FY24 Q3FY24 Q3FY24 Q3FY24 Q3FY24 Q3FY24 (TTM) Q3FY24 Result ₹13,698 Cr ₹2,802 Cr ₹15,472 ₹1,928 Cr ₹9,115 Cr 0.92x Q2FY24 - ₹14,128 Cr Q2FY24 - ₹2,213 Cr Q2FY24 - ₹11,003 Q2FY24 - ₹
Slide 30: Net Debt and EBITDA bridge
Net Debt and EBITDA bridge Consolidated Net Debt Movement (QoQ) (INR Cr) Q3FY24 Result 9,115 7,313 2,118 -2,663 2,347 As at 30th Sept’23 Debt Repayment New Debt Raised Change in Cash & Cash Eq. As at 31st Dec’23 Consolidated Adjusted EBITDA Movement (QoQ) (INR Cr) 2,802 161 91 2,213 522 -185 Q2FY24
Slide 31: Strong Balance Sheet
Q3FY24 Result FY19 39,137 FY20 35,918 FY21 22,146 Net Debt (INR Cr) FY22 8,876 -77% FY23 6,953 Strong Balance Sheet Consolidated Performance Q1FY24 6,812 Q2FY24 7,313 Q3FY24 9,115 FY19 4.65 FY20 4.56 FY21 1.53 FY22 0.57 Net Debt/EBITDA (x) FY23 0.70 -80% Q1FY24 0.75 Q2FY24 0.77 Q3FY24 0.92 FY19 1.23
Slide 32: Financial Performance - Consolidated
Financial Performance - Consolidated Q3FY24 Result INR Crore Quarterly Performance 9 Months Performance Particulars Q3FY24 Q2FY24 Q3FY23 9MFY24 9MFY23 Gross Revenue* 13,698 14,128 14,469 42,366 44,765 Net Revenue 11,736 12,282 12,470 36,662 39,061 Adjusted EBITDA** 2,802 2,213 2,357 7,719 7,459 Depr
Slide 33: Financial Performance - Standalone
Financial Performance - Standalone Q3FY24 Result INR Crore Quarterly Performance 9 Months Performance Particulars Q3FY24 Q2FY24 Q3FY23 9MFY24 9MFY23 Gross Revenue* 13,485 13,953 13,840 41,658 43,528 Net Revenue 11,545 12,108 11,842 35,978 37,826 Adjusted EBITDA** 2,715 2,244 2,163 7,623 6,384 Deprec
Slide 34: Project Update
Company Snapshot Macro and Sectoral Update Business Update Social Initiatives Q3FY24 Results Project Update
Slide 35: Doubling Capacity at Angul by FY25: Project Completion Status
Focused Capacity Expansion Doubling Capacity at Angul by FY25: Project Completion Status Projects Capacity Indicative Timeline Civil Mechanical Electrical Project Status Update Pellet Plant – I 6 MTPA Commissioned HSM 6 MTPA Commissioned Slurry Pipeline 18 MTPA Q1FY25 Pellet plant – II 6 MTPA Q4FY25
Slide 36: Project Status Update: Coal Mines
Focused Capacity Expansion Project Status Update Gare Palma IV/6 Coal Mines Utkal C Coal Mines Project Status Update 35
Slide 37: Project Status Update: Blast Furnace, Slab Caster
Focused Capacity Expansion Project Status Update Blast Furnace Slab Caster Project Status Update 36
Slide 38: Project Status Update: BOF-I, Slurry Pipeline
Focused Capacity Expansion Project Status Update Basic Oxygen Furnace - I Slurry Pipeline Project Status Update 37
Slide 39: Project Status Update: Coke Oven, Lime Dolo Plant
Focused Capacity Expansion Project Status Update Coke Oven Battery Lime Dolo Plant Project Status Update 38
Slide 40: Project Status Update: Hot Strip Mill, Cold Roll Mill
Focused Capacity Expansion Project Status Update Hot Strip Mill Cold Roll Mill Project Status Update 39
Slide 41: Project Status Update: RMHS, ACPP-2
Focused Capacity Expansion Project Status Update RMHS ACPP-2 Project Status Update 40
Slide 42: Thank you
Thank you JINDAL STEEL & POWER
Jindal Steel & Power — Q3 FY2024 Earnings Presentation on 6ix