Q4 & FY 14 PERFORMANCE HIGHLIGHTS

Transcription

1 Q4 & FY 14 PERFORMANCE HIGHLIGHTS 29 th April, 2014

2 DISCLAIMER This presentation contains certain forward looking statements concerning 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 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

3 PRESENTATION OUTLINE Q4 & FY 14 HIGHLIGHTS INDIAN ECONOMY AT A GLANCE INDUSTYRY DEVELOPMENTS OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE PROJECTS UPDATE 3

4 Highlights: Q4 FY13-14 JSPL in FY14 embarked upon major capacity addition plans. Angul Phase I steel project with SMS capacity of 1.6 MTPA and Plate Mill capacity of 1.5 MTPA completed. Second pellet plant of 4.5 MTPA in Barbil completed. In Oman, 2 MTPA steel plant completed and successfully commenced its commercial production in April,

5 Highlights: Q4 FY13-14 Overhaul and up gradation of its existing 3 MTPA Steel plant at Raigarh commenced. Exports jumps by 160 % in FY14 Export Jumps 160% Retail sales register 333 % growth in FY 14 Inventory Reduction of 23 % in Finished Goods Retail sales grew 333% Dividend of 150 % declared. 5

6 FY 14-15: A defining year for JSPL STEEL - India 3 MTPA 5.5 MTPA POWER - JPL 1000 MW 3400 MW OMAN - Steel 0 MTPA 2 MTPA PELLET 4.5 MTPA 9 MTPA *Capacity as on is 2800MW. 4 th Unit of 600MW will be commissioned in H2FY15 **Oman has existing capacity of 1.5MTPA of HBI. 6

7 PRESENTATION OUTLINE HIGHLIGHTS INDIAN ECONOMY AT A GLANCE INDUSTYRY DEVELOPMENTS OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE PROJECTS UPDATE 7

8 FY 13 14: How the Indian Economy fared GDP Growth expected to be 4.9% for FY as compared to 4.5% in FY During Apr- Feb , IIP growth was (-) 0.1 % as compared to 0.9 % in Apr- Feb GDP growth expected to be 4.9% Eight core infrastructure industries grew by 2.6% during Apr Feb as compared to 6.4 % during Apr - Feb Exports and imports declined by 3.2% and 2.1% resp. in US$ terms, during Mar 2014 over Mar 2013 Imports declined by 2.1% 8

9 IIP (y-o-y%) 2.00 General 0.60 Manufacturing 0.10 Sep '13 Oct '13 Nov '13 Dec '13 Jan '14 Feb ' Sep '13 Oct '13 Nov '13 Dec '13 Jan '14 Feb ' Electricity Mining Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb

10 PRESENTATION OUTLINE Q4 FY 14 HIGHLIGHTS INDIAN ECONOMY AT A GLANCE INDUSTYRY DEVELOPMENTS FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE PROJECTS UPDATE 10

11 GLOBAL STEEL INDUSTRY 3.5% % Global Steel Production (Mt) China drives increase in production in 2013; India & ME +ve contributors as well % % 1.8% 1.9% 1.9% 6.9% World Asia China India EU CIS North America Middle East Jan - Dec '12 Jan - Dec '13 Source: WSA 11

12 Global Steel Industry - Production 3.5% 0.4% World 0.6% 2.7% Growth in China was main driver CY 12 Vs 13 Jan (13 Vs 14) Feb (13 Vs 14) Mar (13 Vs 14) 7.5% 3.2% China 0.4% 2.2% Production rebounded in March 14, led by recovery in Chinese production in Mt in L MT in L MT in L MT CY (12 Vs 13) Jan (13 Vs 14) Feb (13 Vs 14) Mar (13 Vs 14) 12

13 Capacity Utilization ration improves India 5 % 0.0 % 3.2 % In Mt 3.9 % In L MT In L MT CY (12 Vs 13) Jan (13 Vs 14) Feb (13 Vs 14) Mar (13 Vs 14) 73 In L MT India s steel production (Jan- Dec 13) up by 5% (y-o-y) First two month of year production declined, while rebounded by 4% In March Rest of the World 3.1 % in Mt in L MT in L MT in L MT CY 12 Vs 13 Jan (13 Vs 14) Feb ( 13 Vs 14) Mar ( 13 Vs 14) Rest of the World (other then China & India) Steel Production (Jan Dec 13) down by 0.5% (y-o-y) Last three month overall production remains almost constant. 13

14 Capacity Utilization ration improves 14

15 Power Sector Recent Developments Amending Mega Power Policy 2009 for provisional mega power projects State Govt. of Gujarat has banned its state distribution companies from buying power from other states. Govt. has approved the Power System Development Fund Govt. has approved the Power System Development Fund New Transmission Lines to Strengthen Connectivity of Southern Grid Govt. sets up Coal Regulator through an Executive Order to advise on fixing Price & formulation of Policies for Coal Sector 15

16 Power Sector Recent Developments MoEF has decided that the go ahead for UMPPs will no longer be linked to clearance of their captive coal blocks. CIL signed 157 FSAs for a capacity of MW out of total target of MW. 15 FSAs yet to be signed (Due to Change in Ownership & Extension of Supply issues) Govt. formulated draft policy on Usage of surplus coal including middling's, rejects (Includes handing over of surplus coal to local CIL subsidiary at a transfer price fixed by Govt.) Coal Controller Org. assigned the task of monitoring the development of Captive Coal Blocks incl Production & Utilization. State level monitoring committee also constituted. Govt. formulated draft policy on Usage of surplus coal including midlings 16

17 POWER SECTOR INSTALLED CAPACITY (as on 31 st Mar 2014) (in MW) 300, , , % 12.1% 200, , , % 9.0% 59.8% 100,000 50, ,780 40,531 29, % Coal Gas Diesel Nuclear Hydro RES (in GW) (in MW) ,780 1,200 40,531 21,782 29, , FY09 FY10 FY11 FY12 FY13 FY14 Source: CEA Coal Gas Diesel Nuclear Hydro RES 17

18 POWER SECTOR INSTALLED CAPACITY (as on 31 st Mar 2014) Increasing share of private sector GW Government Private 100% = Source: CEA; Planning commission; Infraline; Analyst report; Company Web sites 18

19 Growth in Thermal Capacity Vs PLF% % 77.50% % % % % 80.00% 75.00% 70.00% 65.00% % 55.00% 0 FY09 FY10 FY11 FY12 FY13 FY14 Inst.Cap (in GW) PLF (in %age) 50.00% Source: CEA 19

20 Power deficit states Peak Deficit Base Deficit 25.0% 20.0% All India Avg. 4.5% (Apr 13 to Mar 14) 20.1% All India Avg. 4.2% (Apr 13 to Mar 14) 21.9% 15.0% 13.4% 14.0% 10.8% 10.0% 5.0% 7.4% 7.8% 5.8% 6.2% 6.3% 6.3% 6.5% 6.6% 4.1% 5.4% 5.9% 6.4% 6.9% 9.5% 0.0% Source: CEA 20

21 PRESENTATION OUTLINE Q4 FY 14 HIGHLIGHTS INDIAN ECONOMY AT A GLANCE INDUSTYRY DEVELOPMENTS OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE PROJECTS UPDATE 21

22 Steel - Production & Sales of JSPL Production of Crude Steel (in Lakh MT) Q1 Q2 Q3 Q4 FY 13 FY 14 Total Sales (in Lakh MT) Crude steel production for FY was 2.88 MTPA 2.93 Million MT sold in FY (3% increase over last year s 2.84 MTPA) NSR showing a strong trend in Q3 & Q4 of FY Q1 Q2 Q3 Q4 FY13 FY14 22

23 Export of Steel 600 Export Sales (Mt) % growth in volume from FY to FY Q1 Q2 Q3 Q4 Total FY FY

24 JSPL s Retail Another Quantum jump 180, , , ,000 Retail Sales (MT) 1,24,121 MT Channel sales in FY % Growth in Retail Sales volume over Q ,000 80, ,000 40,000 20, % 4.90% 8.50% 6.90% 5.00% 9.20% 6.70% 7.40% 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 24

25 JSPL s Retail Network growth Growth in Distributor Network (from 5 41) Apr '13 May '13 Jun '13 Jul '13 Aug '13 Sep '13 Oct '13 Nov '13 Dec '13 Jan '14 Feb '14 Mar ' Growth in Dealer Network (from 267 to 1128) Apr '13 May '13 Jun '13 Jul '13 Aug '13 Sep '13 Oct '13 Nov '13 Dec '13 Jan '14 Feb '14 Mar '

26 Inventory Reduction drive 600, , , , , ,000 0 Total Inventory (in MT) 31 Dec '12 31 Mar '13 30 Jun '13 30 Sep '13 31 Dec '13 31 Mar '14 16% decrease in inventory as compared to quarter opening 23% reduction in total inventory as compared financial year opening 26

27 JPL Power Generation, PLF & NSR (4x250MW) Generation (in Mus) Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 PLF (%age) Gross Realisation (Rs/Unit) % increase in Realization (Q4 FY14 Vs. Q3 FY14) 0 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 0 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 27

28 OVERSEAS OPERATIONS Q4 UPDATE OMAN SOUTH AFRICA Production HBI (MT): 397,623 Sales (MT): 363,813 Production (MT): 171,764 Sales (MT): 201,554 MOZAMBIQUE Wollongong Coal Ltd Production (MT): 343,278 Sales (MT): 125,016 Production (MT): 194,701 Sales (MT): 265,167 28

29 Wollongong Coal - Australia Acquired 68.36% in Wollongong Coal Unique Geographic Location Wollongong (80 kms. South of Sydney) experienced mining community available Port Kembla: < 20 kms. with sufficient coal handling and Cape size capacity Easy and reliable connectivity through Rail and Road Unique unmatched location with significant strategic advantages 100% owner of 2 underground mines in NSW, Australia Russel Vale with 314 MT Resources and 92.0 MT of Reserves Wongawilli with 337 MT Resources and 33.4 MT of Reserves Total Resources 652Mt 29

30 PRESENTATION OUTLINE Q4 FY 14 HIGHLIGHTS INDIAN ECONOMY AT A GLANCE INDUSTYRY DEVELOPMENTS OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE PROJECTS UPDATE 30

31 Financial results - standalone Q4 Financial Results Particulars (Rupees in Crores) For the Quarter ending % Y ON Y Q ON Q Turnover-Total 3,686 3,777 4, % -2.4% -Export % -12.2% EBITDA 972 1,210 1,036 PBT % -29.4% Profit after Tax % 17.9% Cash Profit % 6.5% CAPEX 1,101 1, M Financial Results For the 12 Month ending % Particulars (Rupees in Crores) Y ON Y Turnover-Total 14,544 14, % -Export 3,275 1, % EBITDA 4,012 4,613 PBT 1,601 2, % Profit after Tax 1,292 1, % Cash Profit 2,644 2, % CAPEX 5,514 4,667 - Net Debts 23,607 20,441-31

32 Financial results - Consolidated Q4 Financial Results Particulars (Rupees in Crores) For the Quarter ending % Y ON Y Q ON Q Turnover-Total 5,103 5,377 5, % -5.1% EBITDA 1,314 1,701 1,589 PBT % -51.6% Profit after Tax % -28.3% Cash Profit 947 1,093 1, % -13.3% CAPEX 2,832 2,548 2,439 12M Financial Results For the 12 Month ending % Particulars (Rupees in Crores) Y ON Y Turnover-Total 20,004 19, % EBITDA 5,776 6,669 - PBT 2,512 3, % Profit after Tax 1,910 2, % Cash Profit 3,876 4, % CAPEX 11,520 9,951 - Net Debts 35,353 24,425-32

33 PRESENTATION OUTLINE Q4 FY 14 HIGHLIGHTS INDIAN ECONOMY AT A GLANCE INDUSTYRY DEVELOPMENTS OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE PROJECTS UPDATE 33

34 Angul Major Facilities SN. Units Technology Capacity 1 Coal Gasification Lurgi, SA 225,000 NM3/Hr Synthesis Gas 2 Direct Reduced Iron MIDREX, USA 1.8 Million Tons/Yr. 3 Lime & Dolomite Plant Cimprogetti, Italy 2 x 500 Tons/Day 4 Steel Melt Shop & Caster SMS Semag & SVAI 250 Tons EAF 5 Plate Mill Siemens VAI 1.5 Million Tons/ Yr. 6 Oxygen Plant Air Liquide, France 2X1200 Tons/Day 7 Power Plant SEC, China 6X135 MW 8 Coal Washery EMA, Australia 1200 Tons/Hr 34

35 Angul CGP Aerial View 35

36 Angul CGP 225,000 NM3/Hr 36

37 Angul DRI 1.8 MTPA 37

38 Angul SMS 2.5 MTPA 38

39 Angul Plate Mill 1.5 MTPA 39

40 Angul Plate Mill 1.5 MTPA UT Machine 40

41 Angul Oxygen Plant 41

42 Angul Power Plant 135x6 MW 42

43 Angul Power Plant Turbine Hall 43

44 Angul Coal Washery 44

45 Angul Railway Siding 45

46 Raigarh Plate Mill - Heat Treat Leveller 4 Hi Heat treat leveller, Reversible Commissioned in Feb,

47 Raigarh Replacement of EAF 1 New improved Lower shell Single point roof lifting Modified nose panel (double cooling system) New improved power conductive electrode arm Modified EBT slide gate Modified Electrode saver panel 47

48 Stockyard at Ghaziabad 48

49 Stockyard at Ghaziabad 49

50 JPL Panoramic view of 4x600 MW 50

51 JINDAL MOZAMBIQUE COKING COAL & THERMAL COAL MINE 51

52 Wollongong Coal 52

53 Jindal Shadeed SMS 2 MTPA, COD:23 rd April,

54 For any information please contact: - D.Balasubramanyam Head of Investor Relations Tel: Mobile: d.bala@jindalsteel.com Ms. Pallavi Kumari Investor Relations Tel : Mobile: pallavi.kumari@jindalsteel.com 54

55 THANK YOU