Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q4 FY24 Earnings Presentation
64 slides from Jsw Steel's earnings presentation, May 17, 2024
Slide 1: Exchange filing cover letter
Ref: JSWSL: SEC: Mum: 2024-25 May 17, 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: Q4 & FY24 Results Presentation
Shaping a Brighter Future for India with Steel Q4 & FY24 Results Presentation 17 May 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 15 Business Environment 19 Operational Performance 25 Financial Performance 36 Outlook & Project Updates 44 Digitalisation at JSW Steel 50 Appendix 54 JSW Steel Q4 FY24 Results Presentation 3
Slide 5: Key Highlights – Q4 FY24 & FY24
Key Highlights – Q4 FY24 & FY24 • Revenue from Operations: ₹1,75,006 crore in FY24, ₹46,269 crore in Q4 • Operating EBITDA: ₹28,236 crore in FY24, ₹6,124 crore in Q4 • Net Profit: ₹8,973 crore in FY24, ₹1,322 crore in Q4 Consolidated • Net Debt to Equity: 0.93x and Net Debt to EBITDA1: 2.62x Perform
Slide 6: Agenda
Agenda Sustainability Strategy and Growth Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q4 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: 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 9: 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 ‘No net loss’ of Biodiversity by FY30
Slide 10: Building a Strong Health & Safety Culture
Building a Strong Health & Safety Culture Safety Culture Survey Capacity Building JSW Steel’s Vision 000 • Safety Culture Survey of the workforce including Zero contract workmen, conducted at JSW Raigarh Zero Zero major • Camera-fitted Helmets for monitoring high-risk/critical injury harm incidents
Slide 11: Environmental Performance
Environmental Performance Specific Energy Consumption (Gcal/tcs) GHG Emission Intensity (tCO2/tcs) Specific Freshwater Consumption (m3/tcs) 2.60 6.56 6.38 2.52 2.49 2.50 2.44 2.36 6.04 2.45 2.45 2.41 2.39 5.66 5.68 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Dust Emiss
Slide 12: Sustainability Recognitions & Initiatives
Sustainability Recognitions & Initiatives JSW Steel awarded as 2024 Steel Sustainability Champion Project SEED for Decarbonisation JSW Steel adjudged Steel Sustainability Champion by worldsteel for 6th consecutive year • 400 employees engaged, 25 Sustainability Action Group Leadership levels in CDP
Slide 13: Social Impact in FY24
Social Impact in FY24 More than 575 villages and over 1mn people reached Health & Water, Environment Waste Skill Art, Culture & Education Agriculture Sports Nutrition & Sanitation Management Development Heritage 6,07,000 5,55,000 2,50,000 1,47,000 52,000 19,000 70,000 2 nos. Shalimar Bagh and Indivi
Slide 14: Our Commitment to Society
Our Commitment to Society Health and Nutrition Water, Environment & Sanitation Sharpening Vision: clearer sight for a better tomorrow • 74,457 people impacted in Maharashtra, Karnataka, Odisha & Tamil Nadu • Rural Eye Health program launched in Mar’24 in Raigad Education 2,50,000 children in 1,400 s
Slide 15: Our Commitment to Society
Our Commitment to Society Art, Culture and Heritage • Hampi Art Labs is a first in a series of new-age constellation sites within the arts ecosystem in India • Will engage the local community and international visitors with contemporary art in all forms. Learning activities and workshops will be dev
Slide 16: Agenda
Agenda Sustainability Strategy and Growth Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q4 FY24 Results Presentation 15
Slide 17: 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 18: JSW Steel: Growth Path
JSW Steel: Growth Path India Capacity U.S. Capacity Vijayanagar JISPL Dolvi 36.2 43.5 51.5 1.5 2 8.0 50.0 1.5 2.0 5.0 42.0 1.5 0.3 36.7 Growth Options in the Portfolio 34.7 Organic • Brownfield growth potential of ~5mt at each of Vijayanagar and BPSL • 4mt brownfield Green Steel in 2 phases • Greenf
Slide 19: 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 36.2 25000 35 1.5 ₹18,952cr 2 6.5 20000 30 25 28.2 15000 ₹9,165cr 19.5 20 1.5 10000 15 18.0 14.3 5000 10 5
Slide 20: Agenda
Agenda Sustainability Strategy and Growth Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q4 FY24 Results Presentation 19
Slide 21: Global Economy
Global Economy GDP Growth Forecasts (%YoY) • 2024 Global GDP growth to be stable, and marginally higher than CY24F (as of Jan 24) CY24F (April 24) CY25F (April 24) previous forecast. Improvement in global Manufacturing PMI in 6.8% 6.5% Q1 CY24, and continued disinflation are positives. However, 6.5%
Slide 22: Global Steel
Global Steel Crude Steel Production – Jan-Mar (mt) Finished Steel Demand (mt) China Steel Production and Export (mt) Jan-Mar CY22 Jan-Mar CY23 Jan-Mar CY24 CY23 CY24F (as of Oct 23) CY24F (Apr 24) CY25F (Apr 24) China Crude Steel Production (LHS) 150 12 +1.7% Exports (RHS) +0.5% 10 100 8 1,849 0.0%
Slide 23: Indian Economy
Indian Economy PMI – Manufacturing & Services GST Collections (₹ Lakh Cr) • Robust growth momentum continues, led by industrial sector and PMI Manufacturing PMI Services 65 2.2 capital formation 60 2.0 • Public capex in infrastructure driving the growth in investments 55 1.8 with central capex up 36
Slide 24: Indian Steel – Quarterly Trend
Indian Steel – Quarterly Trend Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q4 FY23 Q4 FY24 Finished Semis Finished Semis +9.7% +9.0% YoY Trend 37.33 35.71 34.04 32.76 +30.8% +30.4% 2.61 3.05 2.00 0.34 2.33 0.34 0.38 0.36 2.27 2.71 1.62 1.98 Crude Steel Production Apparent S
Slide 25: Indian Steel – Annual Trend
Indian Steel – Annual Trend Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) FY23 FY24 Finished Semis Finished Semis +13.2% +13.6% YoY 9.65 +2.5% YoY +37.4% 144.04 YoY 1.33 8.34 YoY 8.54 127.20 136.25 119.89 1.62 1.06 7.02 1.00 8.32 7.49 6.72 6.02 Crude Steel Production Apparent
Slide 26: Agenda
Agenda Sustainability Strategy and Growth Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q4 FY24 Results Presentation 25
Slide 27: Q4 FY24 Volumes – JSW Steel Consolidated
Q4 FY24 Volumes – JSW Steel Consolidated Crude Steel Production Steel Sales +3% +3% YoY YoY +12% -1% QoQ QoQ 6.87 6.79 6.58 6.73 6.53 6.00 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 Indian Operations 6.37 6.63 6.54 Indian Operations 6.35 5.82 6.48
Slide 28: Q4 FY24 Sales: JSW Steel – Indian Operations
Q4 FY24 Sales: JSW Steel – Indian Operations Customer Segments – Domestic Sales Value-Added and Special Products 5.42mt 5.27mt -5% YoY % of Total 60% 60% 62% 5.16mt -2% QoQ Sales 3.83 4.03 33% 3.49 38% 39% Retail 14% Auto 13% 13% 14% 16% 17% Industrial 35% 37% 32% Construction & Infra Q4 FY23 Q3 FY2
Slide 29: FY24 Volumes – JSW Steel Consolidated
FY24 Volumes – JSW Steel Consolidated Crude Steel Production Steel Sales +9% +11% YoY YoY 26.43 24.16 24.78 22.39 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 Indian Operations 23.62 25.55 Indian Operations 21.86 23.96 Flat 17.52 19.25 Domestic 87% 86% Long 4.94 4.99 Export 13% 14% USA - Ohio Operations
Slide 30: FY24 Sales: JSW Steel Consolidated – Indian Operations
FY24 Sales: JSW Steel Consolidated – Indian Operations Customer Segments – Domestic Sales Value-Added and Special Products 19.11mt 20.57mt % of Total +8% YoY 56% 61% Sales 14.65 39% 37% Retail 12.35 13% Auto 14% 15% 16% Industrial 32% 33% Construction & Infra FY23 FY24 FY23 FY24 • Domestic sales up
Slide 31: Retail Segment & Branded Stores: Indian Operations
Retail Segment & Branded Stores: JSW Steel Consolidated – Indian Operations Retail Sales (in kt) Branded Stores (number of outlets) -3% +3% 2,059 YoY 274 new +16% branded stores 7,456 7,681 364 QoQ added in new 2,058 1,993 towns and 90 in 1,359 existing towns 1,717 4,518 4,547 327 1,232 1,131 1,029
Slide 32: Q4 & FY24 Production & Sales
Q4 & FY24 Production & Sales In million metric tonnes Particulars Crude Steel Production Sales Q4 FY24 Q4 FY23 YoY Q4 FY24 Q4 FY23 YoY Consolidated India Operations 6.54 6.37 3% 6.48 6.35 2% USA – Ohio Operations 0.25 0.21 19% 0.25 0.18 37% JSW Steel Consolidated Operations 6.79 6.58 3% 6.73 6.53 3%
Slide 33: Grades/Products Approved in Q4 FY24
11 Grades/Products Approved in Q4 FY24 Coated Steel for Renewables, Special Alloy Steel for Railways and Hot Rolled Steel for General Engineering Applications Hydraulic Cylinder Tubes (ST52.3 Modified – HR) Ploughing / Harrow Disc for Tractors (30MnB5 – HR) E-Clips for Railway Tracks (56SiCr7 – Long
Slide 34: Grades/Products Approved in FY24
48 Grades/Products Approved in FY24 Coated Steel for Renewables, Special Alloy and Hot Rolled Steel for Auto OEMs, Defence, General Engineering Applications & Railways Ammunition Shell Casing Solar Module for Artillery Guns Mounting Structure (Long & Special Alloy) (Magsure – Coated) Long Members fo
Slide 35: 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 36: 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 in FY24 Volumes No of registered customers 51,000 Steel Cement 7,05,000 MT 81,000 MT Visits on platform1 2,97,000 Up 3.7x Up 7.8x YoY YoY GMV (₹ C
Slide 37: Agenda
Agenda Sustainability Strategy and Growth Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q4 FY24 Results Presentation 36
Slide 38: Financials – Consolidated
Financials – Consolidated ₹ crore Particulars Q4 FY24 Q4 FY23 Q3 FY24 FY24 FY23 Revenue from operations 46,269 46,962 41,940 1,75,006 1,65,960 Operating EBITDA 6,124 7,939 7,180 28,236 18,547 Other Income 242 465 194 1,004 1,030 Finance Cost 2,062 2,138 1,996 8,105 6,902 Depreciation 2,194 2,009 2,0
Slide 39: Q4 FY24 Consolidated Results – Drivers of Performance
Q4 FY24 Consolidated Results – Drivers of Performance • Consolidated crude steel production of 6.79mt, flat QoQ and up 3% YoY with capacity utilization Volumes of 93% at Indian operations • Total sales volumes at 6.73mt, higher by 12% QoQ and 3% YoY • Net sales realisations (NSR) at Indian operation
Slide 40: Consolidated EBITDA Movement – Q4 FY24 vs. Q3 FY24
Consolidated EBITDA Movement – Q4 FY24 vs. Q3 FY24 ₹ crore 787 7,180 6,124 1,159 662 19 3 EBITDA Volume NSR Cost Overseas Consol Adj. EBITDA Q3 FY24 subsidiaries Q4 FY24 JSW Steel Q4 FY24 Results Presentation 39 39
Slide 41: Consolidated EBITDA Movement – FY24 vs. FY23
Consolidated EBITDA Movement – FY24 vs. FY23 ₹ crore 649 28,236 16,371 64 1,713 18,547 8,980 EBITDA Volume NSR Cost Overseas Consol Adj. EBITDA FY23 subsidiaries FY24 JSW Steel Q4 FY24 Results Presentation 40 40
Slide 42: Financials – Indian Operations
Financials – Indian Operations ₹ crore JSW Steel – India Q4 FY24 Q4 FY23 Q3 FY24 FY24 FY23 Crude Steel Production (mt) 6.54 6.37 6.63 25.55 23.62 Steel Sales (mt) 6.48 6.35 5.82 23.96 21.86 Revenue from Operations 43,158 44,400 39,715 1,63,409 1,56,616 Operating EBITDA 5,889 7,567 6,923 27,007 17,90
Slide 43: Consolidated Net Debt Movement
Consolidated Net Debt Movement 7,696 ₹ crore 79,221 73,916 12,355 117 529 Net Debt New Repayments Forex Impact Movement Net Debt Dec'23 Loans Taken in Cash Mar'24 Particulars 31.03.2024 31.12.2023 31.03.2023 Net Debt (₹ Cr) 73,916 79,221 59,345 Cash & Cash Equivalents (₹ Cr) 12,590 12,061 20,719 Net
Slide 44: 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 3.20x Bonds and 0.93x 2.40x 2.61x 2.62x debentures, 0.83x 0.89x Foreign INR debt, 43% 40% 1.45x c
Slide 45: Agenda
Agenda Sustainability Strategy and Growth Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q4 FY24 Results Presentation 44
Slide 46: JSW Steel Consolidated Capex Update
JSW Steel Consolidated Capex Update Particulars ₹ Cr Capex carried forward (including Creditors and Acceptances) 37,094 New Approvals: Dolvi Phase-III 19,125 Growth, Mining Projects, Italy Rail Mill modernisation 4,665 Sustenance Capex 3,550 Total 64,434 Approx. 95% of capex is for India operations,
Slide 47: Key Project Updates – Vijayanagar
Key Project Updates – Vijayanagar 5mtpa Brownfield Project • HSM commissioning, commercial production and sales have commenced in March 2024 • Comissioning of 5mtpa integrated facility expected by July 2024 • Ramp-up expected by end of Q3 FY25 Finishing Mill Stand at HSM Coke Oven Plant • 1.5 mtpa c
Slide 48: Key Project Updates – BPSL & Others
Key Project Updates – BPSL & Others Phase-II Expansion from 3.5 to 5 MTPA • Wire Rod Mill-2, Billet Caster commissioned • Lime Calcination Plant-6 commissioning in Q1 FY25 • Gradual ramp-up expected by end of Q3 FY25 Other Projects WRM-2 commissioning at BPSL • 0.12 MTPA Colour Coating line in Jammu
Slide 49: Value Accretive Project: Dolvi Phase - III
Value Accretive Project: Dolvi Phase - III 5mtpa brownfield expansion at Dolvi Transformation of Dolvi Plant • Increase steel-making capacity by 5mtpa, taking total capacity to 15mtpa Dec 2010 FY16-17 FY22 FY25-Sep’27 o Expansion expected to be completed by Sep’27 Acquisition Expanded Expanded Expan
Slide 50: FY25 Guidance
FY25 Guidance All fig. in million metric tonnes FY25 Crude Steel Particulars Sales Production Consolidated India Operations 27.40 26.00 JSW Steel USA Ohio 1.00 1.00 Total Combined Volumes 28.40 27.00 JSW Steel Q4 FY24 Results Presentation 49
Slide 51: Agenda
Agenda Sustainability Strategy and Growth Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q4 FY24 Results Presentation 50
Slide 52: JSW Steel's Digital Focus Areas
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 53: Project SAMPARK: End-to-End Transformation of Road Movement
Project SAMPARK: End-to-End Transformation of Road Movement The Project at Vijayanagar and Dolvi has 3 Aspects Key Benefits ➢ Reduction in road logistics cost In-bound In-plant Out-bound o Approx. 3.5% reduction in logistics cost from logistics logistics logistics better process efficiencies, increa
Slide 54: Transforming Mining Operations with Digital
Transforming Mining Operations with Digital Digitalized Mine Planning & Operations Optimize End-to-End Logistics • Pit-to-Plant Digital Logistics Management • 3D Mine Planning & Geological Modelling for • RFID-based vehicle authorization; automated mine designs man-less weighbridge operations • Digi
Slide 55: Agenda
Agenda Sustainability Strategy and Growth Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel Appendix JSW Steel Q4 FY24 Results Presentation 54
Slide 56: Quarterly Volumes – Standalone
Quarterly Volumes – Standalone Crude Steel Production Steel Sales +0% +2% YoY YoY -1% +9% QoQ QoQ 5.60 5.72 5.69 5.69 5.69 5.20 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 All figures in million tonnes. JSW Steel Q4 FY24 Results Presentation Following the completion of JISPL merger with JSW Stee
Slide 57: Annual Volumes – Standalone
Annual Volumes – Standalone Crude Steel Production Steel Sales +7% +8% YoY YoY 22.26 21.22 20.87 19.67 FY23 FY24 FY23 FY24 All figures in million tonnes. JSW Steel Q4 FY24 Results Presentation Following the completion of JISPL merger with JSW Steel, volumes for JISPL have been included from 1 st Aug
Slide 58: Financials – Standalone
Financials – Standalone ₹ crore Particulars Q4 FY24 Q4 FY23 Q3 FY24 FY24 FY23 Revenue from Operations 35,341 37,153 33,310 1,35,180 1,31,687 Operating EBITDA 4,442 6,247 5,779 21,980 15,371 Other Income 451 552 386 1,704 1,572 Finance Cost 1,569 1,556 1,551 6,108 5,023 Depreciation 1,460 1,305 1,351
Slide 59: Financials – BPSL and JSW Steel Coated Products
Financials – BPSL and JSW Steel Coated Products BPSL Q4 FY24 Q4 FY23 Q3 FY24 FY24 FY23 Crude Steel Production (mt) 0.81 0.78 0.86 3.18 2.76 Steel Sales (mt) 0.78 0.71 0.70 2.96 2.51 Revenue from Operations (₹ crore) 5,572 5,570 5,030 21,893 20,077 Operating EBITDA (₹ crore) 536 949 780 2,765 1,805 P
Slide 60: Financials – US Operations
Financials – US Operations USA – Ohio Operations Q4 FY24 Q4 FY23 Q3 FY24 FY24 FY23 Production - Crude Steel (net tonnes) 2,75,822 2,31,908 2,67,666 9,62,697 5,88,976 Sales - Slab (net tonnes) 2,03,733 1,25,124 1,46,383 6,47,371 2,99,272 HRC (net tonnes) 67,801 72,776 56,355 2,58,492 2,77,939 Revenue
Slide 61: Financials – Piombino, Italy
Financials – Piombino, Italy Piombino, Italy Q4 FY24 Q4 FY23 Q3 FY24 FY24 FY23 Production – Rolled Products (Bars, Wire Rod & Rails) (tonnes) 65,918 67,210 95,871 3,21,242 2,80,354 Grinding Balls (tonnes) 8,558 11,174 5,789 28,856 48,409 Sales – Rolled Products (Bars, Wire Rod & Rails) (tonnes) 71,4
Slide 62: Our Steel is Helping Build Key Infrastructure in India
Our Steel is Helping Build Key Infrastructure in India High Speed Rail (Mumbai-Ahmedabad Bullet Train) Project Metro Projects: 48 km of Metro project lines 879 Km of Railway Freight Corridors (Mumbai- (Mumbai, Pune, Nagpur, Bengaluru, Haryana WDFC & Ludhiana-West Bengal EDFC) Ahmedabad, Chennai, Ind
Slide 63: Our Steel is Helping Build Key Infrastructure in India
Our Steel is Helping Build Key Infrastructure in India 2.0 GW Solar Projects Nuclear Power Plants: 747 MW for Kudamkulam, 1.2 GW Wind Projects Tarapur, Kakrapar Power Projects Mumbai Coastal Road Expressways and Highways: 845 Km Roads & 140 Km Bridges across major projects Airports: Navi Mumbai, Jew
Slide 64: Thank You
THANK YOU Investor Relations Contact: ir.jswsteel@jsw.in