jspl presentation q1 fy 14-15-0

8/11/2019 Jspl Presentation q1 Fy 14-15-0

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Q1 FY15

AnalystPresentation

6thAugust, 2014


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DISCLAIMER

This presentation may contain certain forward looking statements concerning

JSPLsfuture business prospects and business profitability, which are subject to anumber of risks and uncertainties and the actual results could materially differ

from those in such forward looking statements.

The risks and uncertainties relating to these statements include, but are not

limited to, risks and uncertainties regarding fluctuations in earnings, our ability to

manage growth, competition (both domestic and international), economic growth

in India and the target countries for exports, ability to attract and retain highly

skilled professionals, time and cost over runs on contracts, our ability to manage

our international operations, government policies and actions with respect to

investments, fiscal deficits, regulations, etc., interest and other fiscal costs

generally prevailing in the economy. Past performance may not be indicative of

future performance.

The company does not undertake to make any announcement in case any of these

forward looking statements become materially incorrect in future or update any

forward looking statements made from time to time by or on behalf of the

company.

2

Jindal Steel & Power Limited


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HIGHLIGHTSINDIAN

ECONOMY AT A

GLANCE

Q1

FY15

INDUSTYRYDEVELOPMENTS

OPERATIONALPERFORMANCE

FINANCIALPERFORMANCE

PROJECTSUPDATE

3

PRESENTATION OUTLINE



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4

Key Highlights: Q1 FY14-15


Standalone EBITDA improves from 25% to 33%.

Standalone PAT margin improves from 7% to 9%.

Finished goods Inventory Reduction by 27%

Finished Steel sales grew by 11%

Retails sales grew by 284%

Captive power generation increased by 29%


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7.4 lakh MT Crude steel production in Q1 FY 15 increase of

4%over Q1 last year

7.5 lakh MT sold in Q1 FY 15 increase of 4%Q1 last year

8% growth in NSR of Steel in Q1 FY 15 vs Q1 FY 14

Over 25% growth in Retail Dealer network from March 2014

1.24 lakh MT steel exported - increase of 6% over Q1 lastyear

5




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Raigarh

Modernization of BF 1 completed

Revamp of EAF - 1 completed in 15 days

Slag Processing plant commissioned

Angul

Coal Gasification plant commissioned.

DRI plant commissioned - Production started

Use of syn gas in Re heating furnace Plate Mill, Lime and Dolo Kilns & SMS

in place of LDO/HSD.

Started dispatch of CGP By products in the market

Oman

Jindal Shadeed commissioned its state of the art 2 MTPA Steel Melting

Shop, first & largest integrated Steel Plant in Oman, on 23rd April 2014

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HIGHLIGHTS

INDIAN

ECONOMY AT AGLANCE




PROJECTSUPDATE

7




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8

Indian Economy Dawn of a NEW ERA (14-15)

Likely new Policy trends (1/2)


Economic Growth Top of the Agenda (5.5 to 6% during FY14-15)

Focus on Inflation Control

Focus on Infrastructure & Manufacturing

De Regulation of Economy

Divestment of Public Sector

Dilution of Land Bill for Infrastructure & Housing

Speedier Environmental & Forest Clearances

Reduction of Subsidies


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9

Indian Economy Dawn of a NEW ERA (14-15)

Likely new Policy trends (2/2)


Reduced size of Government

Enhanced participation and ownership of foreign companies

Simplification of Tax Regime & introduction of GST

Larger role and delegation for State Government

Increased E - Governance

Empowerment & accountability of Bureaucracy

Transparency in allocation of Mines & Minerals


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10

IIP


In Apr'14 IIP grew by 3.4% while in May'14

it rose 4.7% (the highest since October

2012)

Improved performance of manufacturing,

mining and power sectors and higher

output of capital goods


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11

IIP sector wise


General Manufacturing

Electricity Mining

-0.60

0.10

-1.90 -0.50

3.404.70

Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14

-1.60 -0.70 -3.70 -1.20

2.60

4.80

7.506.50

11.50

5.40

11.90

6.30

Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14

0.400.70

1.40

-0.40

1.20

2.70


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Positive Indications


Index of 8 core industries grows at 7.3% in June, fastest since October last year

Electricity Sector: Latest estimates show growth at 15.7% in June, comparedwith 6.3% in May

Steel Sector: Growth of 4.2% in June as compared to 2% in May

Cement Sector: Grew at 13.6% in Jun against 8.7% in May

Economic Survey expects India's economy to expand by 5.4 - 5.9% this fiscal


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Copyright @ 2014 Jindal Steel & Power Limited 1313



HIGHLIGHTSINDIAN

ECONOMY AT A

GLANCE

Q1

FY 15




PROJECTSUPDATE


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14

Asias dominance in Global Steel Space


971

1343

1607

2003 2008 2013

Crude Steel Production

Rest of World

Asia67%58%

46%Fig: Mega Tonne

186

336

515

175

247

302

151

195225

88

126 132

30

4358

2003 2008 2013

Per Capita Finished Steel Consumption (Kg)

China

Russia

World

Brazil

India

885

1221

1481

2003 2008 2013

Finished Steel Consumption

66%58%

51%

Finished Steel Consumption

2003 - 13 CAGR

World 5.30%

Rest of the World (ex Asia) 1.50%

Asia 8.00%

China 11.3%

India 8.30%

Rest of Asia 1.50%

- Asia accounted for 90% of the average incremental consumption during the decade

- CY 13: Asia accounted for more then 66% of Crude production & Steel consumption


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Jan June Global Steel performance


801

540

84

54.4 59

2313 8

821

555

87

53.9 60

22 14 8

World Asia EU CIS North America South America Middle East Africa

MillionTonne

Jan - June '13 Jan - June '142.5%

2.9%

3.8%

1.7%

9.3% 1.2%

1 %

2.6%

Production


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Production trend of Indian Steel Industry

77

20 20

81

21 21

CY (12 Vs 13) Jan-March (13 Vs 14) April-June (13 Vs 14)

India

India:

- Steel production (April-June14) up by 1.1% (y-o-y)

- Steel production (Jan-April14) up by 1.6% (y-o-y)

5.0%

1.6% 1.1%



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Price trend Long products


April 14 July 14: Price

movement:

Domestic Prices:

- TMT & WR prices onuptrend.

International Prices:

- ~ 9% decrease in TMT (FOB

China)

- ~ 5% decrease in Wire rod

(FOB China)

440

460

480

500

520

540

560

30000

32000

34000

36000

38000

40000

42000

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Last week Latest

Prices(Rs/MT-B

asic)

Price Movement : TMT & Wire Rod

Domestic (Delhi-Rs/MT) Vs International ($/MT)

TMT Rebar-

Delhi

Wire Rod-

Delhi

TMT Rebar-

FOB China

Wire Rod -

FOB China

Domestic

International


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Price trend Flat product


April 14 July 14: Price

movement:

Domestic Prices:

- 1-1.5 % decrease in HRC

- 1-2% decrease in Plate

International Prices:

- ~1-2.5 % decrease in

HRC & Plate (FOB-China)

500

505

510

515

520

525

530

535

540

545

550

34000

35000

36000

37000

38000

39000

40000

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Last week Latest

ExW/YR

s/MT

HRC & Plate Price Movement : Domestic (Delhi -Rs/MT) & International (FOB China - $/MT)

HR Coil-

Delhi

HR Plate-

Delhi

HR Coil-

FOB China

HR Plate-

FOB China

International

Domestic


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HIGHLIGHTSINDIAN

ECONOMY AT A

GLANCE

Q1

FY 15




PROJECTSUPDATE

19




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Business Achievements


In FY14 In FY 15

5.5 MTPA

2800 MW

~2x

~2.8x

2 MTPA add

Steel - India 3 MTPA

Power 1000 MW

Oman 0 MTPA

Pellet 4.5 MTPA 9 MTPA ~2x

In terms of Capacity addition ..another JSPL isadded to JSPL


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JSPL - Raigarh


12,100 Cr. 3.5 MTPA Liquid Steel 2.35MTPA Finished Steel 851 MW 5200Investment Capacity Steel Power Workforce


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Process Flow Diagram - Raigarh



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23

JSPL - Angul


18500 Cr. + 1.5 MTPA Steel 1.2 MTPA Finished Steel 810 MW 2723Investment Capacity Capacity Power Workforce


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Process Flow Diagram - Angul


Product

usage

Ship Building Line Pipes High End

Structural

Boilers Wind Mills Engineering Pressure

Vessels

Coal Gasification Gas Based DRI EAF

Plates Plate Mill Slab Caster

Link Link Link

Link Link Link


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25

JSPL - Patratu


1,764 Cr. 1.6 MTPA Finished Steel 1373Investment Capacity Workforce


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Process Flow DiagramPatratu


Bar Mill Processing Panther TMT Rebar

WRM Processing Wire Rod

Rebar Service Centre Processing Taking Shape Cut & Bend


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JSPL - Barbil


2,388Cr. 9 MTPA Pellet 660Investment Capacity Workforce


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Process Flow DiagramPellet Plant



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Steel - Production & Sales


7.4 lakh MT Crude

steel production for

Q1 FY 15 (4% growth

over Q1 last year)

7.5 lakh MT sold in Q1

FY 15 (4% increase

over Q1 last year)

7.7

6.9

7.77.9

7.1

7.4

8.2

7.37.4

6.0

6.5

7.0

7.5

8.0

8.5

Q1 Q2 Q3 Q4

Production of Crude Steel (in Lakh MT)

FY 13 FY 14 FY 15

6.3 6.8

7.9

9.7

7.2

8.0 8.1 8.2

7.5

-

2.0

4.0

6.0

8.0

10.0

12.0

Q1 Q2 Q3 Q4

Total Sales (in Lakh MT)

FY13 FY14 Fy 15

d i l l


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Product wise Steel Sales


89

57

1317

10

142

79

145

147

96

63

6

1813

143

93

128

166

-

20

40

60

80

100

120

140

160

180

200

Structural MLSM Conv Wld Beam Rail TMT Wire Rod Semis Plates

Q1 FY 14 Q1 FY 15

Growth uniform across products

(volume in 000 MT)

h i


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Focus on growth in Exports


19

104

140

170

119

138

150

141

124

-

20

40

60

80

100

120

140

160

180

Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 Q1 FY 14 Q2 FY 14 Q3 FY 14 Q4 FY 14 Q1 FY 15

Export Sales (in MT)4% growth in Export Sales in Q1 FY 15

(vs Q1 FY 14)

l h


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JSPLs Retail Another Quantum jump


682 3,5347,359

17,845 17,092 19,832

35,315

51,899

65,773

93,325

118,225

159,025

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 Q1 FY 14 Q2 FY 14 Q3 FY 14 Q4 FY 14 Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4 FY 15

Retail Sales (MT)

65,773 MT Channel sales in Q1FY 15

26% Growth in Retail Sales volume

over Q4

l k h


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JSPLs Retail Network growth


Growth in Distributor Network (from 5 41)

Growth in Dealer Network (from 267 to 1472)

5

15 1720

23 25 2530 40 41 41 41 41 41 41 41

0

20

40

Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14

267 357495 511 532 571

653 721 759

955 10141128 1216 1261 1360

0

200

400

600

800

1000

1200

1400

Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14

1472

OVERSEAS OPERATIONS Q1 UPDATE


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OVERSEAS OPERATIONS Q1 UPDATE


Production HBI (MT): 353,727

Sales (MT): 312,046

Sales (Million USD): 111

EBITDA (million USD): 22

OMAN

Production (MT): 69,914

Sales (MT): 59,166


EBITDA (million USD): (1)

SOUTH AFRICA


Sales (MT): 99,616

Sales (Million USD):7.5

EBITDA (million USD): (5)

MOZAMBIQUE


Sales (MT): 85,636


EBITDA (million USD): 3

Wollongong Coal Ltd



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HIGHLIGHTS

INDIAN

ECONOMY AT A

GLANCE

Q1

FY 15

INDUSTYRY

DEVELOPMENTS

OPERATIONAL

PERFORMANCE

FINANCIAL

PERFORMANCE

PROJECTS

UPDATE

Fi i l l d l Q1 FY15


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Financial results standalone Q1 FY15


Particulars (Rupees in Crores)

For the Quarter ending %

30.06.2014 31.03.2014 30.06.2013 Y ON Y Q ON Q

Turnover-Total 3,584 3,813 3,4254.6% -6.0%

EBITDA 1,192 972 848 40.6% 22.7%

Depreciation 415 316 30436.8% 31.6%

Finance costs 428 405 23284.8% 5.8%

PBT 370 385 319 16.2% -3.9%

Profit after Tax 306 431 239 28.2% -28.9%

Cash Profit 786 777 555 41.4% 1.1%

CAPEX 720 1,101 1,228

Fi i l R ti t d l Q1 FY15


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Financial Ratios standalone Q1 FY15


Ratio (%)2014-15 2013-14 2013-14 2013-14

Q1 Q4 Q1 Annual

Raw Material to turnover 26.7 31.6 34.8 32.5

EBITDA to turnover 33.3 25.5 24.7 27.6

Profit before tax to turnover 10.3 10.1 9.3 11.0

Profit after tax to turnover 8.5 11.3 7.0 8.9

Debt Equity Ratio 1.8 1.8 1.6 1.8

Current Ratio 0.7 0.9 1.0 0.9

Interest Service Coverage Ratio 2.1 2.2 2.4 2.2

Debt Service Coverage Ratio 1.2 1.3 1.8 1.3

Fi i l lt C lid t d Q1 FY15


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Financial results Consolidated Q1 FY15


30.06.2014 31.03.2014 30.06.2013 Y ON Y Q ON Q

Turnover-Total 4,978 5,267 4,540 9.6% -5.5%

EBITDA 1,626 1,314 1,305 24.6% 23.8%

Depreciation 667 514 422 58.2% 29.8%

Finance costs 535 423 268 100.1% 26.5%

PBT 517 396 669 -22.8% 30.4%

Profit after Tax 402 378 501 -19.8% 6.2%

Cash Profit 1,149 947 929 23.7% 21.3%

CAPEX 2,172 2,832 2,568

Particulars (Rupees in Crores) For the Quarter ending %

Fi i l R ti C lid t d Q1 FY15


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Financial Ratios Consolidated Q1 FY15


FY15 FY14 FY14 FY14Q1 Q4 Q1 Annual

Raw Material to Turnover (%) 26.9 29.5 30.7 31.1

EBITDA to turnover (%) 32.7 24.9 28.7 28.9

Profit before tax to turnover (%) 10.4 7.5 14.7 12.6

Profit after tax to turnover (%) 8.1 7.2 11.0 9.5

Debt Equity Ratio 1.7 1.7 1.3 1.7

Current Ratio 0.8 0.8 1.0 0.8

Interest Service Coverage Ratio 2.3 2.7 3.4 2.7

Debt Service Coverage Ratio 1.4 1.6 3.01.6

Ratio



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HIGHLIGHTSINDIAN

ECONOMY AT A

GLANCE

Q1

FY 15

INDUSTYRY

DEVELOPMENTS

OPERATIONAL

PERFORMANCE

FINANCIAL

PERFORMANCE

PROJECTS

UPDATE

Raigarh Blast Furnace I


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Raigarh Blast Furnace - I


Ji d l Sh d d O


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Jindal Shadeed, Oman


Jindal Shadeed Oman


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Jindal Shadeed, Oman


Barbil Pellet Plant


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Barbil Pellet Plant


Angul Coal Gasification Plant


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Angul - Coal Gasification Plant


Indias largest Coal Gasification Plant

225,000 NM3/H

Supplier: Lurgi

Designed on high ash coal

Angul Coal Gasification Plant


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Angul -Coal Gasification Plant


Angul DRI SMS Plate Mill


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Angul - DRI, SMS, Plate Mill


Angul DRI


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Angul - DRI


Angul Steel Melting Shop (SMS)


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Angul Steel Melting Shop (SMS)


Angul Plate Mill


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Angul Plate Mill


1.2 MTPA 5m wide Plate Mill

Indias widest Plate Mill

Can roll upto 5m wide Plates

Supplier: Siemens VAI

1.4 KM long shop

Angul 6 x 135 MW Captive Power Plant


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For any information please contact: -

D.Balasubramanyam Head of Investor Relations

Tel: - 011-26739166

Mobile: - 8130755166Email: - [email protected]

Ms. Pallavi Kumari Investor Relations

Tel : - 011-26739165

Mobile:-8800094171

Email: - [email protected]


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THANK YOU

jspl presentation q1 fy 14-15-0

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