Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q3 FY2022 Earnings Presentation
48 slides from Jsw Steel's earnings presentation, Jan 21, 2022
Slide 1: Exchange filing cover letter
a Jaw JwWv Steel Limited Regd. Office : JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051 CIN. 127102MH1994PLC152925 Phone: +91 22 4286 1000 Fax : +91 22 4286 3000 Website : wwwjjsw.in JSWSL: SECT: MUM: SE: 2021-22 January 21, 2022 1. | National Stock Exchange of India Ltd. | 2. | BS
Slide 2: Q3 FY 2022 Results Presentation
Q3 FY 2022 Results Presentation 21 January 2021
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: Key Highlights – Q3 FY22
Key Highlights – Q3 FY22 • Quarterly Revenue from Operations: ₹38,071 crore • Quarterly Operating EBITDA: ₹9,132 crore Consolidated • Quarterly Net Profit: ₹4,516 crore Performance • Net Debt to Equity: 1.02x and Net Debt to EBITDA1: 1.73x • Average capacity utilization of 94% in Q3 FY22 (Ex-Dolvi e
Slide 5: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel JSW Steel Q3 FY22 Results Presentation 4
Slide 6: Sustainability Framework and Priorities
Sustainability Framework and Priorities 17 Focus Areas Governance & Oversight By Board-level Business Responsibility And Climate Change: Biodiversity: No Net Loss for Biodiversity Sustainability Committee • Aligned to India’s Nationally Determined Contributions for Climate Change as per Mr. Malay Mu
Slide 7: Environment: Targets and Strategy
Environment: Targets and Strategy SD Targets FY05 FY30 Targets Improvement Strategic Approach • Transition from thermal to renewable energy • Specific Energy • Reduction of fuel rate in BF and DRI GCal/tcs 6.94 5.65* 19% Climate • Increased use of scrap in steel making Change • GHG Emissions 3.39 1.
Slide 8: Environmental Performance
Environmental Performance Specific energy consumption (Gcal/tonne) GHG emission intensity (tCO2/tcs) Specific freshwater consumption (m3/tcs) 2.75 4.13 6.59 6.56 3.79 6.43 6.38 2.59 2.6 2.41 2.43 2.52 2.52 6.24 2.49 FY18 FY19 FY20 FY21 9M FY22 FY18 FY19 FY20 FY21 9M FY22 FY18 FY19 FY20 FY21 9M FY22
Slide 9: Health & Safety
Health & Safety JSW is committed to providing a safe and healthy working environment and achieving an injury & occupational illness free work place. Our vision is to achieve ‘Zero Harm’ Building a Culture of Health & Safety Health and Safety Competency Awards & Initiatives Development Recognitions •
Slide 10: Our Communities
Our Communities JSW Foundation becomes member of New Initiatives & Updates United Nations Global Compact Inculcating Critical Additional Water Life Skills Storage Capacity • Project reach expanded to 17,000+ • Water resource mapping children under Project ASPIRE study with CII Triveni Water • Life s
Slide 11: Sustainability Initiatives & Recognitions
Sustainability Initiatives & Recognitions Initiatives Ratings Upgrades & Recognitions • Use of Ladle furnace slag briquettes as replacement of synthetic slag at Vijayanagar resulted in o Cost savings o Lower Dependency on external synthetic slag o Recycling of LHF slag reduces its dumping • JSW Stee
Slide 12: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel JSW Steel Q3 FY22 Results Presentation 11
Slide 13: Global Economy
Global Economy GDP Growth Forecasts (%YoY) • World Bank reduced 2022 global GDP forecast by 20 bps to 4.1%, due to Omicron, diminishing fiscal support and supply CY21F(Jan 22) CY22F(Jun 21) CY22F(Jan 22) bottlenecks. • Inflation is a risk to growth, with possible faster monetary tightening and impac
Slide 14: Global Steel
Global Steel Crude Steel Production – Jan-Nov (mt) Steel Demand (mt) China Steel Production and Export (mt) Jan-Nov CY19 Jan-Nov CY20 Jan-Nov CY21 CY19 CY20 CY21F (Oct) CY22F (Oct) China Crude Steel Production (LHS) 150 10 2.2% 4.5% Exports (RHS) 8 1,896 1,855 0% 100 1,775 1,774 -2.6% 4.7% 6 1,753 1
Slide 15: Indian Economy
Indian Economy PMI – Manufacturing GST Collection (₹ Lakh Cr) • Continued economic recovery in Q3 FY22, driven by increased 60 1.6 govt. spending, private consumption and declining Covid cases. 55 50 1.4 Current Omicron wave is a risk, esp. for services 1.2 45 40 1.0 • Govt. initiatives (NIP, Gati S
Slide 16: Indian Steel
Indian Steel Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q2 FY22 Q3 FY22 Finished Semis Finished Semis 3.1% 9.1% -10.5% -37.5% QoQ Trend 30.47 1.25 1.12 5.99 3.74 29.55 26.95 0.04 24.71 0.04 1.79 1.17 1.22 1.09 4.20 2.58 Crude Steel Production Apparent Steel Consumption Q2
Slide 17: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel JSW Steel Q3 FY22 Results Presentation 16
Slide 18: Quarterly Volumes - Standalone
Quarterly Volumes - Standalone Crude Steel Production Steel Sales +8.1% 2.6% YoY 7.5% YoY QoQ 4.41 +5.7% QoQ 4.08 4.10 3.90 3.79 4.00 Q3 FY21 Q2 FY22 Q3 FY22 Q3 FY21 Q2 FY22 Q3 FY22 Q3 FY21 Q2 FY22 Q3 FY22 Q3 FY21 Q2 FY22 Q3 FY22 Flat 2.98 2.79 3.15 Flat 2.92 2.61 3.00 Long 0.93 0.92 0.99 Long 0.91
Slide 19: Quarterly Sales Highlights – Consolidated
Quarterly Sales Highlights – Consolidated Domestic Sales Total Sales OEM/Industrial Retail Auto Export Domestic Other Products Value Added Special Products 3.10mt 3.91mt -1% VASP Q3 55% 30% 15% 79% YoY FY22 Q3 FY22 38% 44% 18% 2% 62% 2.37mt 3.83mt QoQ Q2 62% 48% 33% 19% FY22 Q2 FY22 40% 46% 14% 60%
Slide 20: Retail Segment and Branded Stores Highlights
Retail Segment and Branded Stores Highlights Retail Segment Branded Stores In kt -20% 1,160 YoY +20% 249 Stores 1,176 added in 243 QoQ 362 new towns 945 and 113 in 568 592 existing towns 637 785 529 85 387 277 798 539 416 483 399 315 Q3 FY21 Q2 FY22 Q3 FY22 JSW Shoppe JSW Shoppe Connect Total Brande
Slide 21: Q3 & 9M FY22 Production & Sales Summary
Q3 & 9M FY22 Production & Sales Summary In million metric tonnes Q3 FY22 9M FY22 Crude Steel Crude Steel Particulars Sales Sales Production Production Existing operations 4.23 3.82 12.43 11.21 Dolvi Phase-II expansion 0.18* 0.18 0.18* 0.19 JSW Steel Standalone 4.41 4.00 12.61 11.40 Bhushan Power & S
Slide 22: Branding and Marketing Initiatives
Branding and Marketing Initiatives JSW Radiance: Digital Campaign JSW Neosteel: IPL TVC Campaign JSW Silveron Galvalume: Brand Launch JSW Steel Q3 FY22 Results Presentation 21
Slide 23: Grades/ Products Approved with OEMs in Q3 FY22 (1/3)
20 Grades/ Products Approved with OEMs in Q3 FY22 (1/3) Pre Painted (including EMBO) development for Appliances - High Strength & Structural Steel for automotive - 2 wheeler & Refrigerator Doors ,Frames, Freezer Commercial Vehicle Applications Refrigerator Cabinet Commercial Vehicle FBV parts (IS 27
Slide 24: Grades/ Products Approved with OEMs in Q3 FY22 (2/3)
20 Grades/ Products Approved with OEMs in Q3 FY22 (2/3) Galvanized – High Strength structural steel with excellent Electrical Steel approved from Generator manufacturer replacing a corrosion resistance for Solar Panel structure application competitor product. Generator Core (50C800) 1 1 Solar Panel
Slide 25: Grades/ Products Approved with OEMs in Q3 FY22 (3/3)
20 Grades/ Products Approved with OEMs in Q3 FY22 (3/3) Developed grade for cold heading quality and structural Development of C70S6 grade for connecting rod Application with application (wire rod) lower section size (220*220) 1 Cold Forging Connecting rod (Bolts, Screws, Rivets) (C70S6) (EN18D) 1 S
Slide 26: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel JSW Steel Q3 FY22 Results Presentation 25
Slide 27: Financials – Standalone
Financials – Standalone ₹ crore Particulars Q3 FY22 Q3 FY21 Q2 FY22 FY21 Revenue from Operations 28,850 19,239 28,000 70,727 Operating EBITDA 6,797 5,633 8,673 19,259 Other Income 394 169 919 669 Finance Cost 887 879 802 3,565 Depreciation 1,237 979 1,051 3,781 Exceptional Items - - - 386 Profit bef
Slide 28: Operating EBITDA Movement Q3 FY22 – Standalone
Operating EBITDA Movement Q3 FY22 – Standalone ₹ crore JSW Steel Q3 FY22 Results Presentation 27
Slide 29: JSW Steel Coated Products (Consolidated)
JSW Steel Coated Products (Consolidated) Million tonnes Volumes Q3 FY22 Q3 FY21 Q2 FY22 Production (GI/GL + Tin) 0.73 0.59 0.75 Sales 0.77 0.74 0.82 ₹ crore Key P&L data Q3 FY22 Q3 FY21 Q2 FY22 Revenue from Operations 7,781 4,993 8,331 Operating EBITDA 570 517 1,032 Profit after Tax 346 297 742 Note
Slide 30: Bhushan Power and Steel Ltd (BPSL)
Bhushan Power and Steel Ltd (BPSL) Million tonnes Volumes Q3 FY22 Q2 FY22 Crude Steel Production 0.64 0.69 Steel Sales 0.58 0.76 ₹ crore Key P&L data Q3 FY22 Q2 FY22 Revenue from Operations 5,083 6,478 Operating EBITDA 1,547 2,022 Profit after Tax 1,018 1,443 Note: BPSL became a subsidiary with effe
Slide 31: Operational Performance – Ohio, USA
Operational Performance – Ohio, USA Net tonnes Operational Q3 FY22 Q3 FY21 Q2 FY22 Production - Crude Steel 1,80,112 - 1,68,122 Sales - Slab 74,721 - 73,275 Sales - HRC 92,557 10,892 89,072 US$ mn Key P&L data Q3 FY22 Q3 FY21 Q2 FY22 Revenue from Operations 203.53 5.48 200.83 Operating EBITDA 42.12
Slide 32: Operational Performance – US Plate & Pipe Mill
Operational Performance – US Plate & Pipe Mill Net tonnes Production Q3 FY22 Q3 FY21 Q2 FY22 Plate Mill 76,621 2,578 73,274 Utilization (%) 32% - 31% Pipe Mill 1,261 - 4,890 Utilization (%) 1% - 4% Net tonnes Sales Q3 FY22 Q3 FY21 Q2 FY22 Plate Mill 66,573 18,183 63,565 Pipe Mill 1,251 150 5,219 US$
Slide 33: Operational Performance – Piombino, Italy
Operational Performance – Piombino, Italy tonnes Production Q3 FY22 Q3 FY21 Q2 FY22 Rolled Products (Bars, Wire 104,149 72,866 57,325 Rod & Rails) Grinding Balls 15,921 11,196 7,269 tonnes Sales Q3 FY22 Q3 FY21 Q2 FY22 Rolled Products (Bars, Wire 101,511 76,617 70,142 Rod & Rails) Grinding Balls 12,
Slide 34: Joint Controlled Entity: JSW Ispat Special Products
Joint Controlled Entity: JSW Ispat Special Products Million tonnes Key Metrics Q3 FY22 Q3 FY21 Q2 FY22 Crude Steel Production (mt) 0.14 0.10 0.13 Steel Sales (mt) 0.13 0.07 0.14 ₹ crore Key P&L data Q3 FY22 Q3 FY21 Q2 FY22 Revenue from Operations 1,473 1,161 1,437 Operating EBITDA 92 152 83 Net Prof
Slide 35: Financials – Consolidated
Financials – Consolidated ₹ crore Particulars Q3 FY22 Q3 FY21 Q2 FY22 FY21 Revenue from operations 38,071 21,859 32,503 79,839 Operating EBITDA 9,132 5,946 10,417 20,141 Other Income 154 147 946 592 Finance Cost 1,283 977 936 3,957 Depreciation 1,764 1,230 1,239 4,679 Share of Profit/ (Loss) of Join
Slide 36: Q3 FY22 Results – Drivers of Performance (Standalone)
Q3 FY22 Results – Drivers of Performance (Standalone) • Operated at 94% capacity utilization (ex-Dolvi expansion, which commenced commercial operations on 15th November 2021) vs. 91% QoQ Volumes • Sales volumes higher by 5.7% QoQ, driven by contribution from Dolvi expansion and higher domestic deman
Slide 37: Net Debt Movement – Consolidated
Net Debt Movement – Consolidated ₹ crore Particulars 31.12.2021 30.09.2021 31.03.2021 Net Debt (₹ Cr) 66,312 55,394 52,615 Cash & cash equivalent (₹ Cr) 11,445 15,009 12,821 Net Debt/Equity (x) 1.02 0.92 1.14 Net Debt/EBITDA (x) 1.73 1.58 2.61 JSW Steel Q3 FY22 Results Presentation Note: Net Debt ex
Slide 38: Strong Balance Sheet
Strong Balance Sheet Net Gearing (ND/Equity) well Leverage (ND/EBITDA) well under the stated cap of 1.75x under the stated cap of 3.75x Diversified Funding Sources 1.75x 4.50x 1.38x 1.48x 1.34x 3.75x 1.14x 1.02x 2.60x 2.40x 2.61x INR debt, Loans and Bonds and 1.73x Foreign 43% others, debentures, cu
Slide 39: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel JSW Steel Q3 FY22 Results Presentation 38
Slide 40: Key Project Updates - Dolvi
Key Project Updates - Dolvi Expansion from 5 to 10 mtpa Integrated Steel operations commenced in October 2021, and commercial production started on 15th November 2021. Ramp-up is under way 5 mtpa Steel-making Operations – Key Elements: • Pellet plant of 8 mtpa • Two Phases of Coke Oven battery total
Slide 41: Key Project Updates - Vijayanagar
Key Project Updates - Vijayanagar 5mtpa brownfield project • Long lead-time items ordered, Letters of Credit established • Civil work commenced on the site • Project to be completed by FY24 CRM-1 complex capacity expansion (0.85 mtpa to 1.80 mtpa) • PLTCM project completed in Q4 FY21 • One of the tw
Slide 42: Key Project Updates - Others
Key Project Updates - Others Vasind and Tarapur: Downstream projects • Modernisation-cum-capacity enhancement projects o All expansions commissioned, including 0.45 mtpa GI/GL at Vasind in October 2021. o 0.25 mtpa Color Coating Line commissioned in May 2021 • 0.5mtpa Continuous Annealing Line at Va
Slide 43: Agenda
Agenda Sustainability Business Environment Operational Performance Financial Performance Project Updates Digitalisation at JSW Steel JSW Steel Q3 FY22 Results Presentation 42
Slide 44: Digitalisation: JSW's Approach & Impact Created
Digitalisation: JSW’s Approach & Impact Created Non-sequential waves with continuous introduction of digital lighthouses Wave 4 and Vision 2025 E2E Digital Transformation 4 across functions and group 3 Wave 3 Expanding the art of possible to E2E 130+ 6,000+ 400+ We are Employees engaged Digital ligh
Slide 45: JSW's Digital Focus Areas
JSW’s Digital Focus Areas Additional Focus Technologies Used Core Systems (SAP, SF, GCP, Mining Azure, Darwin Box), IoT, AI/ML, Analytics, Cloud/Edge Computing, RPA-leveraging Safety, Security, Sustainability led JSW Digital team as well as Finance Governance R&D Primary Supply Startup ecosystem Foc
Slide 46: Industry 4.0 for Digital Steel Plants and Value Chain
JSW- Industry 4.0 for Digital Steel Plants and Value Chain Fleet and fuel management system AI Enabled Security Surveillance Integrated Control Tower Artificial Cloud System Dashboards (Several Intelligence Computing plants) Level-2 Automation Inventory Tracking Process Yard Management System Track
Slide 47: Technology
…Initiatives beyond Industry 4.0 leading to significant value generation JSW’s Digital transformation along B2B sales 3 dimensions… direct connect (JSW One for MSME) Outbound Advanced spend Logistics and cube analytics – IoT network category rooms optimizer (procurement-cpc) (mines) Technology Analy
Slide 48: Investor Relations Contact
Investor Relations Contact: ir.jswsteel@jsw.in JSW Steel Q3 FY22 Results Presentation 47