Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Q3 FY2020 Earnings Presentation
35 slides from Jindal Steel's earnings presentation, Jan 18, 2020
Slide 1: Filing letter to stock exchanges: Investor Presentation
January 18, 2020 JINDA STEEL & POWER BSE Limited Corporate Relationship Department, 1st Floor, New Trading Ring, Rotunda Building, P J Towers, Dalal Street, Fort, Mumbai - 400 001 Scrip Code : 532286 The National Stock Exchange of India Limited Exchange Plaza, 5 Floor, Plot No. C/1, G Block Bandra-K
Slide 2: Q3 FY'20 Industry Update & Key Performance Highlights
Q3 FY’20 Industry Update & Key Performance Highlights 18th January, 2020
Slide 3: Forward looking statements disclaimer
This presentation may contain certain forward looking statements concerning Steel & power sector , Economy and JSPL’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 in such forwa
Slide 4: Q3 FY'20 Highlights
Q3 FY’20 HIGHLIGHTS INDUSTRY UPDATE COMPANY UPDATE
Slide 5: Highest ever revenue & EBITDA in FY19
HIGHEST EVER REVENUE & EBITDA IN FY19 (Figures in Rs. Crores) JSPL achieved REVENUE (Rs. In Cr) ever highest Standalone Consolidated 39,388 Revenue in FY19 27,844 22,706 18,350 19,943 20,070 19,626 18,632 27,730 17,523 15,114 14,691 15,502 13,518 13,687 12,852 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY
Slide 6: JSPL consolidated debt bridge QoQ
JSPL CONSOLIDATED DEBT BRIDGE QoQ DEBT BRIDGE 3QFY20 (Rs. In Cr.) 45000 1150 116 10 30000 36501 35457 15000 0 Net Debt as on 30th Sept'19 Debt reduction Fx Impact(Addition due to Movement in Cash & Cash Net Debt as on 31st Dec'19 FX ) Equivalents
Slide 7: Q3 FY'20 Industry Update
Q3 FY’20 INDUSTRY UPDATE HIGHLIGHTS COMPANY UPDATE
Slide 8: Indian Steel Industry: FY20 (April-Nov) Major Highlights
Indian Steel Industry : FY20 (April-Nov) Major Highlights Fig in Mt Crude Production (April – Nov FY20) 73 The Crude steel production grew up by 0.5 % (y-o-y) 73 Led by Non-flat steel (53% share; up by 5.7%) while the rest 47% was the share of Flat steel 0.5% (down by 1.5%). April- Nov FY19 Apri
Slide 9: Raw material prices remained firm
Raw Material prices remained firm > Iron Ore : 62% CFR China ($/MT) > Met Coal : PLV FOB Australia ($/MT) 120 210 210 204 208 109 198 197 99 181 93 91 93 90 92 95 87 86 85 76 156 152 145 149 134 136 Mar-19 Jul-19 May-19 Jan-19 Feb-19 Aug-19 Apr-19 Jun-19 Dec-19 Nov-19 Sep-19 Oct-19 Current Mar-19 Ju
Slide 10: Power Business: SHAKTI
POWER BUSINESS SHAKTI has been implemented to support thermal power plants without FSAs B(i) CIL/SCCL may grant Coal linkages for SHAKTI Scheme B(viii) Central Government and State Government Gencos at the notified price of CIL/SCCL. ▪ In 2017, the government All power plants without PPAs shall be a
Slide 11: Commercial Mining in India
Commercial Mining In India Commercial Mining –A Game Changer Few Large explored blocks on offer ▪ On 8th Jan, 2020 , the Central govt. through an ordinance Reserve PRC has opened up the coal sector completely for commercial 410 0 45 mining for all local and global firms after easing 40 restrictions
Slide 12: IEX Clearing Price Trend
IEX CLEARING PRICE TREND 6.30 RTC Power Exchange Prices – W3 Region (Rs./kWh) 5.73 5.30 4.69 4.57 4.30 FY 15-16 3.97 FY 16-17 3.68 4.02 FY 17-18 3.58 3.45 3.33 3.33 FY 18-19 3.68 3.68 3.30 3.05 3.30 3.20 FY 19-20 3.06 3.06 3.33 3.32 3.38 3.32 3.19 3.19 3.22 2.71 2.92 2.85 2.84 2.67 2.73 2.55 2.20 2.
Slide 13: Installed Capacity in India as on 31st Dec 2019
Installed Capacity in India as on 31st Dec 2019 is 369 GW vis-à-vis 347 GW as on 31st Dec 2018 205 197 45 45 38 35 34 25 25 25 22 21 Coal Hydro Wind Gas Solar Others Installed Capacity GW (Sep 19) Installed Capacity GW (Sep 18) Source: CEA
Slide 14: Q3 FY'20 Highlights / Industry Update
Q3 FY’20 HIGHLIGHTS INDUSTRY UPDATE COMPANY UPDATE
Slide 15: Business Segments
BUSINESS SEGMENTS STEEL POWER GLOBAL VENTURES Current Capacities – Domestic & Global 8.6 MTPA Steel* 2.4 MTPA Steel IPP – 3400MW 3.11 MTPA* Iron ore Coal & Iron Ore CPP – 1634 MW 9 MTPA* Pellet Plant Mines *Domestic
Slide 16: Steel Capacities Across Life Cycle
STEEL CAPACITIES ACROSS LIFE CYCLE IRON MAKING LIQUID STEEL FINISHED STEEL (10.25 MTPA) (11.00 MTPA) (7.95 MTPA) WRM 0.60 MTPA Capacity DRI 4.92 MTPAin deail RUBM 0.75 MTPA SMS 11.00 MTPA MLSM 0.60 MTPA BF 5.33 MTPA Plate Mill 2.20 MTPA BRM 3.80 MTPA
Slide 17: Detailed Plant Wise Capacities
DETAILED PLANT WISE CAPACITIES Raigarh Angul Barbil Patratu Oman JPL Mining (Chhattisgarh) (Odisha) (Odisha) (Jharkhand) CGP BF 2.125 MTPA 225,000 DRI 1.8 Nm3/Hr MTPA DRI 1.32 MTPA BF 3.2 MTPA WRM Capacity in deail 0.60 SMS DRI 1.8 MTPA 3.6MTPA MTPA SMS 2.5 SMS 2.4 Iron Plate Mill MTPA Pellet Tamnar
Slide 18: Manifold Growth in the Last 5 Years
MANIFOLD GROWTH IN THE LAST 5 YEARS FY ‘14 FY ‘19 STEEL - INDIA 3 MTPA 8.6 MTPA ~2.86x POWER 1,000 MW 3400 MW 3.4x OMAN 0 MTPA 2.4 MTPA Add PELLET 4.5 MTPA 9 MTPA ~2x All major capex completed – scale of growth is approx. Three Times
Slide 19: Potential for Big Leap
POTENTIAL FOR BIG LEAP UPSIDE FY19 CAPACITY PRODUCTION IN FY19 POTENTIAL STEEL – INDIA 8.6 MTPA 5.25 MTPA 64% CAPACITY STEEL – OMAN 2.4 MTPA 1.71 MTPA 40% CAPACITY INDEPENDENT POWER CAPACITY 3,400 MW 1187 MW 186% PELLET 9.0 MTPA 7.08 MTPA 27% CAPACITY Upside potential remains to be exploited
Slide 20: JSPL Standalone Key Financials
JSPL STANDALONE KEY FINANCIALS (Rs. In Crores) Q2 FY 20 Q3 FY 20 PARAMETER Q3 FY 20 Q3 FY 19 6,573 6,640 Turnover 6,640 6,731 1,255 1,352 EBITDA 1,352 1,480 19% 20% EBITDA % 20% 22% 582 570 Depreciation + Amortization 570 572 657 634 Interest 634 635 16 148 PBT 148 287 15 97 PAT 97 177 9 months 9 mo
Slide 21: JSPL - Power Capacities
JSPL - POWER CAPACITIES Independent Power Projects (IPP) CAPACITY CONFIGURA PROJECT FUEL STATUS (MW) TION TAMNAR 1 1,000 Coal 4x250 MW Operational TAMNAR 2 2,400 Coal 4x600 MW Operational Captive power projects (within JSPL) Raigarh CAPACITY STAT PROJECT FUEL CONFIGURATION Tamnar (MW) US Angul DCPP,
Slide 22: Jindal Power Limited: EUP-I, EUP-II, EUP-III
JINDAL POWER LIMITED 96.43% subsidiary of JSPL EUP -I EUP -II EUP -III 1000MW (4 X 250) 1200MW (2 X 600) 1200MW (2 X 600)
Slide 23: PPA Arrangements
PPA ARRANGEMENTS PERIOD QUANTUM PROJECT BUYER TYPE FROM TO (MW) TAMNAR II Tamil Nadu Long Term Feb-14 Sep-28 400 (PHASE 1) TAMNAR II Long Term Jun-16 May-41 200 (PHASE 1) KSEB TAMNAR II Long Term Oct-17 Sep-42 150 (PHASE 1) TAMNAR II Long Term 60 (PHASE 1) After commercial operation Chhattisgarh of
Slide 24: JPL Key Financials
JPL KEY FINANCIALS (Rs. In Crores) Q2 FY 20 Q3 FY 20 PARAMETER Q3 FY 20 Q3 FY 19 947 784 Turnover 784 1,004 299 257 EBITDA 257 273 32% 33% EBITDA % 33% 27% 292 292 Depreciation + Amortization 292 334 214 219 Interest 219 219 (64) (111) PBT (111) (203) (35) (83) PAT (83) (160) 228 181 Cash Profit 181
Slide 25: Key Contractual Arrangements for JPL
KEY CONTRACTUAL ARRANGEMENTS FOR JPL TAMNAR-I, 1,000 MW (EUP I) TAMNAR-II - 1,200 MW (EUP II) TAMNAR-II - 1,200 MW (EUP III) Long term linkage from Coal sourced through – Coal sourced through – Mahanadi Coal Limited FSA market purchase and e- market purchase and e- (MCL) and South Eastern auct
Slide 26: Summary of International Operations
SUMMARY OF INTERNATIONAL OPERATIONS SHADEED, OMAN 1.8 MT DRI , 2.4 MT SMS Plant & 1.4MTPA Rebar Mill – an Integrated Steel Plant MOZAMBIQUE, AFRICA Developing a 5 MTPA coal mine in Mozambique’s coal- rich Moatize region SOUTH AFRICA, AFRICA AUSTRALIA JSPL’s Kiepersol Colliery produces Anthraci
Slide 27: Holding Structure for Global Operations
HOLDING STRUCTURE FOR GLOBAL OPERATIONS Jindal Steel & Power Ltd Listed Operating Entity in India Jindal Steel & Power (Mauritius) Ltd Holding company for overseas business Oman Australia South Africa Mozambique 2.4 MTPA Steel plant Coking Coal Anthracite Coal Thermal/ Coking Coal
Slide 28: JSPL Consolidated Key Financials
JSPL CONSOLIDATED KEY FINANCIALS (Rs. In Crores) Q2 FY 20 Q3 FY 20 PARAMETER Q3 FY 20 Q3 FY 19 8,939 9,300 Turnover 9,300 9,566 1,642 1,820 EBITDA 1,820 2,077 18% 20% EBITDA % 20% 22% 1,039 1,018 Depreciation + Amortization 1,018 1036 1,030 1,002 Interest 1,002 1042 (427) (201) PBT (201) 14 (399) (2
Slide 29: Key Customers & Adding...
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Slide 30: Odisha
ODISHA INTEGRATED STEEL PLANT , ANGUL PELLET PLANT, BARBIL
Slide 31: Chhattisgarh
CHHATTISGARH INTEGRATED STEEL PLANT,RAIGARH STEEL FABRICATION PLANT, PUNJIPATRA HEAVY MACHINERY DIVISION, RAIPUR TAMNAR,3400 MW POWER PLANT
Slide 32: Jharkhand
PANTHER JINDAL? JHARKHAND WRM & BRM, PATRATU
Slide 33: Jindal Shadeed, Oman
JINDAL SHADEED, OMAN
Slide 34: Investor relations contact
For any information please contact: - Mr. Nishant Baranwal – Head, Investor Relations Tel : +91 11-41462198 Mobile:+91 8800690255 Email: - nishant.baranwal@jindalsteel.com Mr. Gourav Sancheti– Asst. Manager, Investor Relations Tel : +91 0124-6612317 Mobile:+91 9038240683 Email: - gourav.sancheti@jin
Slide 35: Thank You
THANK YOU JINDALY
Jindal Steel & Power — Q3 FY2020 Earnings Presentation on 6ix