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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
Jindal Steel & Power Limited
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4
Key Highlights: Q1 FY14-15
Jindal Steel & Power Limited
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
Key Highlights: Q1 FY14-15
Jindal Steel & Power Limited
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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
6
Key Highlights: Q1 FY14-15
Jindal Steel & Power Limited
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HIGHLIGHTS
INDIAN
ECONOMY AT AGLANCE
INDUSTYRYDEVELOPMENTS
OPERATIONALPERFORMANCE
FINANCIALPERFORMANCE
PROJECTSUPDATE
7
PRESENTATION OUTLINE
Jindal Steel & Power Limited
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8
Indian Economy Dawn of a NEW ERA (14-15)
Likely new Policy trends (1/2)
Jindal Steel & Power Limited
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)
Jindal Steel & Power Limited
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
Jindal Steel & Power Limited
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
Jindal Steel & Power Limited
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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12
Positive Indications
Jindal Steel & Power Limited
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
PRESENTATION OUTLINE
Jindal Steel & Power Limited
HIGHLIGHTSINDIAN
ECONOMY AT A
GLANCE
Q1
FY 15
INDUSTYRYDEVELOPMENTS
FINANCIALPERFORMANCE
FINANCIALPERFORMANCE
PROJECTSUPDATE
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14
Asias dominance in Global Steel Space
Jindal Steel & Power Limited
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
Jindal Steel & Power Limited
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%
Jindal Steel & Power Limited
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Price trend Long products
Jindal Steel & Power Limited
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
Jindal Steel & Power Limited
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
INDUSTYRYDEVELOPMENTS
OPERATIONALPERFORMANCE
FINANCIALPERFORMANCE
PROJECTSUPDATE
19
PRESENTATION OUTLINE
Jindal Steel & Power Limited
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20
Business Achievements
Jindal Steel & Power Limited
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
Jindal Steel & Power Limited
12,100 Cr. 3.5 MTPA Liquid Steel 2.35MTPA Finished Steel 851 MW 5200Investment Capacity Steel Power Workforce
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22
Process Flow Diagram - Raigarh
Jindal Steel & Power Limited
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JSPL - Angul
Jindal Steel & Power Limited
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
Jindal Steel & Power Limited
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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JSPL - Patratu
Jindal Steel & Power Limited
1,764 Cr. 1.6 MTPA Finished Steel 1373Investment Capacity Workforce
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Process Flow DiagramPatratu
Jindal Steel & Power Limited
Bar Mill Processing Panther TMT Rebar
WRM Processing Wire Rod
Rebar Service Centre Processing Taking Shape Cut & Bend
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JSPL - Barbil
Jindal Steel & Power Limited
2,388Cr. 9 MTPA Pellet 660Investment Capacity Workforce
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Process Flow DiagramPellet Plant
Jindal Steel & Power Limited
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Steel - Production & Sales
Jindal Steel & Power Limited
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
Jindal Steel & Power Limited
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
Jindal Steel & Power Limited
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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32
JSPLs Retail Another Quantum jump
Jindal Steel & Power Limited
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
Jindal Steel & Power Limited
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
Jindal Steel & Power Limited
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
Sales (Million USD): 6
EBITDA (million USD): (1)
SOUTH AFRICA
Production (MT): 111,565
Sales (MT): 99,616
Sales (Million USD):7.5
EBITDA (million USD): (5)
MOZAMBIQUE
Production (MT): 42,145
Sales (MT): 85,636
Sales (Million USD): 15
EBITDA (million USD): 3
Wollongong Coal Ltd
PRESENTATION OUTLINE
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PRESENTATION OUTLINE
Jindal Steel & Power Limited
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
Jindal Steel & Power Limited
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
Jindal Steel & Power Limited
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
Jindal Steel & Power Limited
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
Jindal Steel & Power Limited
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
PRESENTATION OUTLINE
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PRESENTATION OUTLINE
Jindal Steel & Power Limited
HIGHLIGHTSINDIAN
ECONOMY AT A
GLANCE
Q1
FY 15
INDUSTYRY
DEVELOPMENTS
OPERATIONAL
PERFORMANCE
FINANCIAL
PERFORMANCE
PROJECTS
UPDATE
Raigarh Blast Furnace I
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41
Raigarh Blast Furnace - I
Jindal Steel & Power Limited
Ji d l Sh d d O
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Jindal Shadeed, Oman
Jindal Steel & Power Limited
Jindal Shadeed Oman
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Jindal Shadeed, Oman
Jindal Steel & Power Limited
Barbil Pellet Plant
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Barbil Pellet Plant
Jindal Steel & Power Limited
Angul Coal Gasification Plant
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Angul - Coal Gasification Plant
Jindal Steel & Power Limited
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
Jindal Steel & Power Limited
Angul DRI SMS Plate Mill
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Angul - DRI, SMS, Plate Mill
Jindal Steel & Power Limited
Angul DRI
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Angul - DRI
Jindal Steel & Power Limited
Angul Steel Melting Shop (SMS)
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Angul Steel Melting Shop (SMS)
Jindal Steel & Power Limited
Angul Plate Mill
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Angul Plate Mill
Jindal Steel & Power Limited
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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Angul 6 x 135 MW Captive Power Plant
Jindal Steel & Power Limited
Angul 6 x 135 MW Captive Power Plant
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Angul 6 x 135 MW Captive Power Plant
Jindal Steel & Power Limited
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Jindal Steel & Power Limited
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