Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Q2 FY2024 Earnings Presentation
42 slides from Jindal Steel's earnings presentation, Nov 3, 2023
Slide 1: Corrigendum to the Investor's Presentation dated 31st Oct'23
November 3, 2023 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: Corrigendum letter (continued)
6) Blast Furnace and Basic Oxygen Furnace are expected to be commissioned as per schedule in Q2FY25. Unwarranted buffer of two quarters was shown in the investors presentation dated 31st Oct’23 has now been rectified in the presentation enclosed. Please feel free to reach out to the Investor Relatio
Slide 3: Jindal Steel & Power Q2FY24 Earnings Presentation
Jindal Steel & Power Q2FY24 Earnings Presentation 2nd Nov 2023
Slide 4: 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 5: 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 6: Agenda
Company Snapshot Macro and Sectoral Update Capital Allocation Framework Business Update Social Initiatives Q2FY24 Results Project Update
Slide 7: 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 0.77x Expansion program to boost Targeting Net Debt / EBITDA F
Slide 8: 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 13.25 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 9: Agenda: Macro and Sectoral Update
Company Snapshot Macro and Sectoral Update Capital Allocation Framework Business Update Social Initiatives Q2FY24 Results Project Update
Slide 10: World Economic Outlook
World Economic Outlook Real GDP Growth Rate (%) Inflation (%) Source: IMF CY23 (E) CY24 (E) CY25 (E) Source: IMF CY23 (E) CY24 (E) CY25 (E) -21% Macro and Sectoral Update -2% 0% 0% -33% -11% -16% -14% +10% -16% -41% -16% 6.3 6.3 6.3 6.9 +20% 5.8 -32% +29% -3% +50% 5.0 5.6 5.5 -29% 4.2 4.1 4.6 4.6 +7
Slide 11: India Steel Scenario
India Steel Scenario ▪ Crude Steel production grew 20% YoY in Indian Crude Steel Production Indian Finished Steel Consumption Q2FY24 and 15% in H1FY24 Fig in Million Tonnes Fig in Million Tonnes +15% +15% ▪ Finished steel consumption grew 19% YoY Macro and Sectoral Update +20% 70.1 +19% 64.1 in Q2FY
Slide 12: 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 14000 ▪ Indian Steel Prices firmed 80,000 76,500 up by end of Q2FY24 with Macro and Sectoral Update 12550 75,000 12000 the onset of construction 70,000 73,500 9750 season post monsoon and
Slide 13: Agenda: Capital Allocation Framework
Company Snapshot Macro and Sectoral Update Capital Allocation Framework Business Update Social Initiatives Q2FY24 Results Project Update
Slide 14: Capital Allocation Framework: Investment Philosophy
Capital Allocation Framework : Investment Philosophy Investments in • JSP will continue to invest in steel and ancillary businesses (e.g., mines, power, ports etc.) Capital Allocation Framework Steel vs Non-Steel • JSP will invest in green technologies for decarbonising its steel business. India vs
Slide 15: Strong Balance Sheet Across Cycle
Strong Balance Sheet Across Cycle Capital Allocation Framework Liquidity Growth Capex Net Debt Leverage Ratios • JSP will maintain • Annual growth Capex • JSP will maintain low • Net Debt to EBITDA: liquidity of greater will be in the range of level of net debt across ~1.5x through the than INR 2,00
Slide 16: 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 Capital Allocation Framework 1,800 5% 23,200 3,000 10% Existing Capex New Projects* JSO Angul 10% 75% Existing Capex ACPP-II Coal Mines New Projects* To
Slide 17: Agenda: Business Update
Company Snapshot Macro and Sectoral Update Capital Allocation Framework Business Update Social Initiatives Q2FY24 Results Project Update
Slide 18: Sector wise & Value Added Sales
Sector wise & Value Added Sales Domestic Sales Q2FY24 Value Added Product/Grade Sales Growth Business Update as %age of Total 67% 33% 40% 63% 63% 4% 11% 13% Infra B&C Engg & Packaging Automotive Trade/Retail Q2'23 Q1'24 Q2'24 Note: Value added Product/Grade include Hight tensile, Heat-treated Plates
Slide 19: Growth in Rails Business
Growth in Rails Business Supplying import substitution Head Hardened Rails to major 39 Metro/RRTS Projects Business Update YoY 200 % JSP is the only domestic supplier of Head Hardened Rails QoQ 95% • Bhopal Metro 20 • Indore Metro 13 • Ahemdabad Metro • Surat Metro Q1 FY23 Q1 FY24 Q2 FY24 Assymetric
Slide 20: Retail Transformation
Retail Transformation: Leveraging Retail to Decouple from Market Volatilities Rebar Retail Sales Business Update ▪ PAN India network of 48 distributors & 3900 dealers YoY 36% 317 ▪ Added 300 dealers across country in Q2 QoQ 19% ▪ Launched Influencer Loyalty programme [Nirmaan] in 267 Haryana & West
Slide 21: Enhancing Brand Equity and Consumer Connect
Enhancing Brand Equity and Consumer Connect Cricket Live Title Business Update Sponsor for Star Sports & Disney+ Hotstar in Asia Cup Reach 229 million viewers Influencer Connect Significant traction on social 465 Influencers meets held media campaigns Exhibitions & Conferences ~ 3.7 Lakh Impressions
Slide 22: PANTHER 10th Year Anniversary
PANTHER 10th Year Anniversary The Jindal PANTHER 10th-year Business Update celebrations in Dubai, held on the 12th and 13th of August 2023 A spectacular event that combined entertainment, inspiration, and recognition. One of the highlights of the event was the recognition of the top distributors who
Slide 23: Agenda: Social Initiatives
Company Snapshot Macro and Sectoral Update Capital Allocation Framework Business Update Social Initiatives Q2FY24 Results Project Update
Slide 24: 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 on professional, technical & O.P. JINDAL COMMUNITY COLLEGES at Angul, Mortality Rate skill-based courses for women and girls
Slide 25: Empowering our Communities
Empowering our Communities Social Initiatives LIVELIHOOD SPORTS SOCIAL INCLUSION JINDAL VET SEVA JSP has Flag-off “Jindal Vet Seva” JINDAL SPORTS HOSTEL: Jindal Sports Hostel WITH JINDAL PRAYAS CENTRE OF EXCELLENCE provides state-of-art Mobile Veterinary Ambulance for Animal Welfare at Intensive Coa
Slide 26: Awards & Recognitions
Awards & Recognitions National CSR Award, by Ministry OTV Business Odisha of Corporate Affairs, GoI Awards-2023 by OTV (announced in Aug 22) Network Social Initiatives Best Women Empowerment • CSR in Aspirational Initiative by Interview Times Districts/Difficult Terrains in Times Business Award for
Slide 27: Agenda: Q2FY24 Results
Company Snapshot Macro and Sectoral Update Capital Allocation Framework Business Update Social Initiatives Q2FY24 Results Project Update
Slide 28: Q2FY24 Highlights
Q2FY24 Highlights - Consolidated Gross revenue* Adjusted EBITDA ** PAT Net Debt Net Debt to EBITDA Q2FY24 Q2FY24 Q2FY24 Q2FY24 Q2FY24 (TTM) Q2FY24 Result ₹14,128* Cr ₹2,213 Cr ₹1,390 Cr ₹7,313 Cr 0.77x Q1FY24 - ₹14,539 Cr Q1FY24 - ₹2,704 Cr Q1FY24 - ₹1,692 Cr Q1FY24 - ₹6,812 Cr Q1FY24 - 0.75x *Incl.
Slide 29: Net Debt and EBITDA bridge
Net Debt and EBITDA bridge Consolidated Net Debt Movement (QoQ) (INR Cr) Q2FY24 Result -884 7,313 6,812 1,757 -372 As at 30th Jun’23 Debt Repayment New Debt Raised Change in Cash & Cash Eq. As at 30th Sep’23 Consolidated Adjusted EBITDA Movement (QoQ) (INR Cr) 2,704 2,213 -70 -1,363 696 246 Q1FY24 N
Slide 30: Strong Balance Sheet
Strong Balance Sheet Strengthening Fundamentals to Drive Sustainable Growth Q2FY24 Result Consolidated Performance Net Debt (INR Cr) Net Debt/EBITDA (x) Debt/Equity (x) -81% -83% -75% 4.65 4.56 39,137 1.23 1.15 35,918 0.92 22,146 1.53 0.35 0.32 0.31 8,876 0.29 6,953 6,812 7,313 0.70 0.75 0.77 0.57 Q
Slide 31: Financial Performance - Consolidated
Financial Performance - Consolidated Q2FY24 Result INR Crore Quarterly Performance Half Yearly Performance Particulars Q2FY24 Q1FY24 Q2FY23 H1FY24 H1FY23 Gross Revenue* 14,128 14,539 15,534 28,668 30,296 Net Revenue 12,282 12,644 13,522 24,926 26,591 Adjusted EBITDA** 2,213 2,704 1,861 4,917 5,102 D
Slide 32: Financial Performance - Standalone
Financial Performance - Standalone Q2FY24 Result INR Crore Quarterly Performance Half Yearly Performance Particulars Q2FY24 Q1FY24 Q2FY23 H1FY24 H1FY23 Gross Revenue* 13,953 14,220 15,126 28,173 29,688 Net Revenue 12,108 12,325 13,115 24,432 25,984 Adjusted EBITDA** 2,244 2,665 1,426 4,908 4,221 Dep
Slide 33: Agenda: Project Update
Company Snapshot Macro and Sectoral Update Capital Allocation Framework Business Update Social Initiatives Q2FY24 Results Project Update
Slide 34: 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 5.5 MTPA Q3FY24 Slurry Pipeline 18 MTPA Q1FY25 Pellet plant – II 6 MTPA Q4FY25 BOF
Slide 35: Project Status Update: Coal Mines
Focused Capacity Expansion Project Status Update Gare Palma IV/6 Coal Mines Utkal C Coal Mines Project Status Update 33
Slide 36: Project Status Update: Blast Furnace, Slab Caster
Focused Capacity Expansion Project Status Update Blast Furnace Slab Caster Project Status Update 34
Slide 37: Project Status Update: BOF, Slurry Pipeline
Focused Capacity Expansion Project Status Update Basic Oxygen Furnace - I Slurry Pipeline Project Status Update 35
Slide 38: Project Status Update: Coke Oven, Lime Dolo Plant
Focused Capacity Expansion Project Status Update Coke Oven Battery Lime Dolo Plant Project Status Update 36
Slide 39: Project Status Update: Hot Strip Mill
Focused Capacity Expansion Project Status Update Hot Strip Mill Project Status Update 37
Slide 40: Project Status Update: BOF, Pellet Plant
Focused Capacity Expansion Project Status Update Basic Oxygen Furnace - I Pellet Plant Project Status Update 38
Slide 41: Project Status Update: ACPP2
Focused Capacity Expansion Project Status Update ACPP2 Project Status Update 39
Slide 42: Thank you
Thank you JINDAL STEEL & POWER
Jindal Steel & Power — Q2 FY2024 Earnings Presentation on 6ix