Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Q1 FY2021 Earnings Presentation
33 slides from Jsw Steel's earnings presentation, Jul 24, 2020
Slide 1: Exchange filing cover letter for investor/analyst presentation
� Steel Limited Regd. Office : JSW Centre, Sandra Kurla Complex, Sandra (East), Mumbai - 400 051 CIN. : L27102MH1994PLC152925 Phone : +91 22 4286 1000 Fax : +91 22 4286 3000 Website : www.jsw.in JSWSL: SECT: MUM: SE: 2020-21 July 24, 2020 1. National Stock Exchange of India Ltd. 2. BSE Limited Excha
Slide 2: JSW Steel Limited Q1 FY 2020-21 Results Presentation
JSW Steel Limited Q1 FY 2020-21 Results Presentation July 24, 2020 1
Slide 3: Key highlights – Q1 FY21
Key highlights – Q1 FY21 Revenue from operations : ₹ 11,782 crore Consolidated Operating EBITDA : ₹ 1,341 crore performance Net Profit/(Loss) : (₹ 582) crore Net Debt to Equity : 1.54x and Net Debt to EBITDA : 5.74x Despite disruptions in logistics and supply chain, the company operated at
Slide 4: Agenda
Agenda Business Operational Financial Forward Guidance & Environment Performance Performance Projects Update 3
Slide 5: Global economy
Global economy GDP growth Forecasts (%YoY) CY 20 CY21 IMF revises CY20 Global GDP to contract by 4.9%, with downside risks, 8.2% amidst higher-than-usual degree of uncertainty 6.0% 6.0% 5.9% 5.4% 4.8% 4.5% 2.4% 1.0% Global growth expected to rebound and increase by 5.4% in CY21 on -5.8% -3.0% -4
Slide 6: Global steel
Global steel China Steel Production and Export* (mt) Steel Demand (mt) 100 8.00 -6.4% China Crude Steel Production (LHS) Exports (RHS) 2019 2020 (f) -113 80 6.00 1,767 -122 +9 1,654 60 1.0% -14.2% 4.00 40 907 917 859 2.00 737 20 - - Dec-17 Dec-18 Dec-19 Jun-17 Jun-18 Jun-19 Jun-20 China World World
Slide 7: Indian economy
Indian economy Economic activities picking up across the board, reflecting improved IIP - Use Based (Consumer) business sentiment on the back of easing of lockdown restrictions Durables Non-Durables 160 140 Large pockets of activity/industries are heading towards gradual 120 stabilization, albei
Slide 8: Indian steel
Indian steel Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) -41.6% -55.0% 203.5% -35.0% 1.83 5.54 1.94 1.26 27.88 0.14 2.28 24.77 0.05 16.29 1.80 11.14 1.21 0.50 3.27 1.33 Crude Steel Production Finished Steel Consumption Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Finishe
Slide 9: Agenda
Agenda Business Operational Financial Forward Guidance & Environment Performance Performance Projects Update 8
Slide 10: Quarterly volumes- standalone
Quarterly volumes- standalone Crude Steel Production Steel Sales -30% -25% -25% -24% YoY QoQ YoY QoQ 4.24 3.97 3.75 3.70 2.96 2.80 Q1 FY20 Q1 FY21 Q4 FY20 Q1 FY20 Q1 FY21 Q4 FY20 Q1 FY20 Q1 FY21 Q4 FY20 Q1 FY20 Q1 FY21 Q4 FY20 Flat 2.91 2.05 2.87 Flat 2.67 1.99 2.70 Long 1.05 0.45 0.95 Long 0.93 0.4
Slide 11: Quarterly sales highlights – consolidated
Quarterly sales highlights – consolidated -24% -24% YoY QoQ 3.66^ 3.65^ 2.79^ 13% 17% 3.04* 3.20* 51% 52% 62% 14% 57% 11% 31% 28% 1.21* 16% 16% 7% 61% 12% 55% 26% 33% 32% 26% 67% Q1 FY20 Q1 FY21 Q4 FY20 Q1 FY20 Q1 FY21 Q4 FY20 OE Retail Auto Exports VA Special prodcuts Other products Sales volumes
Slide 12: Digital Impact –Q1 FY21
Digital Impact –Q1 FY21 Social Media Performance MSME Focus Followers – 232K+ Impressions- 1.6 million Followers – 93K + (growth by 19119 in QI) Impression- 437.5K Followers – 24K+ (growth by 1232 in QI ) Impressions- 259.2K Launched a new website dedicated to MSMEs Followers – 2.4K+ (growth by 741
Slide 13: Brand Communication
Brand Communication #SAYNOTOPLASTIC #NERVESOFSTEEL Removed PLASTIC #NERVESOFSTEEL Campaign GUARDFILM on JSW Reached 2.1M Audience to Salute Covid Heroes Reached 3.5lac+ Audience COLOURON+ colour coated Digitally leveraging Rishabh Pants Digitally association roofing sheets 12
Slide 14: Product approval status in Q1 FY21
Product approval status in Q1 FY21 6 4 5 3 1 2 7 Galvannealed (GA) with nano surface coating for enhanced formability. 8 1. Panel Hood Outer (Ultra Low carbon) 2. RR Door OTR (Ultra Low carbon) High Strength Steel (HSS) grade for automotive Load bearing, safety & crash parts Special forging alloy st
Slide 15: Product approval status in Q1 FY21 (continued)
Product approval status in Q1 FY21 (continued) 12 11 9 Electrical steel with high Special Grade & Insulation Galvalume – GL - High Strength structural steel with excellent permeability used in Electrical steel for Traction corrosion resistance for Solar Panel structure Compressors for improving moto
Slide 16: Agenda
Agenda Business Operational Financial Forward Guidance & Environment Performance Performance Projects Update 15
Slide 17: Financials – standalone
Financials – standalone ` crore Particulars Q1 FY21 Q1 FY20 Q4 FY20 Revenue from operations 10,293 17,698 15,277 Operating EBITDA 1,429 3,832 3,220 Other Income 154 159 146 Finance Cost 933 1,005 954 Depreciation 867 826 929 Exceptional Items - - 1,309 Profit before Tax (217) 2,160 174 Tax Expenses
Slide 18: Operating EBITDA movement – standalone
Operating EBITDA movement – standalone ` crore 3,220 780 1,250 1,429 239 EBITDA Volume NSR Cost EBITDA Q4 FY20 Q1 FY21 17
Slide 19: Operational performance – JSW Steel Coated Products
Operational performance – JSW Steel Coated Products Million tonnes Volumes Q1 FY21 Q1 FY20 Q4 FY20 Production 0.30 0.44 0.44 Sales 0.33 0.45 0.47 ` crore Key P&L data Q1 FY21 Q1 FY20 Q4 FY20 Revenue from Operations 2,049 2,990 2,915 Operating EBITDA 28 172 91 Profit after Tax (31) 70 19 18
Slide 20: Operational performance – US Plate & Pipe Mill
Operational performance – US Plate & Pipe Mill Production (net tonnes) Q1 FY21 Q1 FY20 Q4 FY20 Plate Mill 57,035 83,516 63,528 Utilization (%) 23% 36% 27% Pipe Mill 4,175 23,093 15,193 Utilization (%) 3% 17% 11% Sales (net tonnes) Q1 FY21 Q1 FY20 Q4 FY20 Plate Mill 53,210 57,032 55,274 Pipe Mill 4,6
Slide 21: Operational performance – Ohio, USA
Operational performance – Ohio, USA Operational (net tonnes) Q1 FY21 Q1 FY20 Q4 FY20 HRC Production 26,954 80,037 73,138 HRC Sales 48,865 71,362 72,888 USD mn Key P&L data Q1 FY21 Q1 FY20 Q4 FY20 Revenue from Operations 29.39 42.47 56.54 Operating EBITDA (12.54) (36.12) (20.19) Net tonnes = 0.907 me
Slide 22: Operational performance – Piombino, Italy
Operational performance – Piombino, Italy Production (tonnes) Q1 FY21 Q1 FY20 Q4 FY20 Rolled Products (Bars, Wire Rod & Rails) 72,406 140,047 99,060 Grinding Ball 12,725 14,439 14,184 Sales (tonnes) Q1 FY21 Q1 FY20 Q4 FY20 Rolled Products (Bars, Wire Rod & Rails) 73,801 140,707 113,201 Grinding Ball
Slide 23: 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 Q1 FY21 Q1 FY20 Q4 FY20 Revenue from Operations 595 777 617 Operating EBITDA (35) (26) 5 Net Profit After Tax (154) (136) (104) 22
Slide 24: Financials – consolidated
Financials – consolidated ` crore Particulars Q1 FY21 Q1 FY20 Q4 FY20 Revenue from operations 11,782 19,812 17,887 Operating EBITDA 1,341 3,716 2,975 Other Income 132 141 122 Finance Cost 1,016 1,042 1,036 Depreciation 1,047 1,026 1,108 Share of Profit/ (Loss) of Joint Ventures (53) (19) (29) Except
Slide 25: Net debt movement – consolidated
Net debt movement – consolidated ` crore 1,730 3,250 54,527 53,473 4,022 96 Net Debt* New Loan Taken Repayments Fx Impact Movement in Cash Net Debt* as on Mar '20 & Cash Equivalents as on June '20 Particulars 30.06.2020 31.03.2020 30.06.2019 Net Debt (crore) 54,527 53,473 47,767 Cash & cash equivale
Slide 26: Q1 FY21 Results – Drivers of Performance
Q1 FY21 Results – Drivers of Performance Operated at 66% capacity utilization vs industry average of 46% Volumes Sales volumes decreased by 24% QoQ; given lower production Enhanced exports amidst subdued domestic demand Net sales realization decreased by 12% QoQ, driven by lower steel prices
Slide 27: Agenda
Agenda Business Operational Financial Projects Environment Performance Performance Update 26
Slide 28: Key Project updates-Dolvi
Key Project updates-Dolvi 5 to 10 mtpa expansion Doubling steel making capacity from 5 mtpa to 10 mtpa- To enhance capacity of flat products portfolio Captive Power-175 MW WHRB and 60 MW CPP to harness flue gases and steam from CDQ Coke oven Phase 2-Second line of 1.5 mpta coke oven battery al
Slide 29: Key Project updates- Vijayanagar
Key Project updates- Vijayanagar CRM1 complex capacity expansion (0.85 mtpa to 1.80 mtpa) Two CGL lines of 0.45 mtpa each New 1.2mtpa Continuous Pickling line Commissioning in phases during H2 FY21 Color Coating line (0.3 mtpa) Commissioning by March 2021 Coke Oven plant 1.5 mtpa Coke Oven
Slide 30: 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 Kalmeshwar- Capacity enhancement of PPGL by 0.22
Slide 31: JSW Steel Branded Portfolio
JSW Steel Branded Portfolio 30
Slide 32: 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 33: Thank you
Thank you IJSW Sicel