Q4 & FY’14 - Jindal Steel and Power · limited to, risks and uncertainties regarding fluctuations...

Q4 & FY’14

PERFORMANCE HIGHLIGHTS

29th April, 2014

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

Jindal Steel & Power Limited

HIGHLIGHTS

INDIAN

ECONOMY AT A

GLANCE

Q4 &

FY’14

INDUSTYRY

DEVELOPMENTS

OPERATIONAL

PERFORMANCE

FINANCIAL

PERFORMANCE

PROJECTS

UPDATE

3

PRESENTATION OUTLINE


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, 2014.

4

Highlights: Q4 FY13-14


Overhaul and up gradation of its existing 3 MTPA Steel plant at Raigarh commenced.

Exports jumps by 160 % in FY14

Retail sales register 333 % growth in FY 14

Inventory Reduction of 23 % in Finished Goods

Dividend of 150 % declared.

5

Export Jumps

160%

Retail sales

grew

333%

Highlights: Q4 FY13-14


6

FY 14-15: A defining year for JSPL


STEEL - India

POWER - JPL

OMAN - Steel

2013 2014

3 MTPA 5.5 MTPA

1000 MW 3400 MW

0 MTPA 2 MTPA

PELLET 4.5 MTPA 9 MTPA

*Capacity as on 31.03.2014 is 2800MW. 4th Unit of 600MW will be commissioned in H2FY15 **Oman has existing capacity of 1.5MTPA of HBI.

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 13-14 as compared to 4.5% in FY 12-13

During Apr- Feb 2013-14, IIP growth was (-) 0.1 % as compared to 0.9 % in Apr- Feb 12-13.

Eight core infrastructure industries grew by 2.6% during Apr – Feb 13-14 as compared to 6.4 % during Apr - Feb 2012-13

Exports and imports declined by 3.2% and 2.1% resp. in US$ terms, during Mar 2014 over Mar 2013

GDP growth

expected to be

4.9%

Imports

declined by

2.1%

2.00

-1.80 -2.10

-0.60

0.10

-1.90

Sep '13 Oct '13 Nov '13 Dec '13 Jan '14 Feb '14

9

General

IIP (y-o-y%)


0.60

-2.00

-3.50

-1.60

-0.70

-3.70

Sep '13 Oct '13 Nov '13 Dec '13 Jan '14 Feb '14

Manufacturing

12.90

1.30

6.30 7.50

6.50

11.50

Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14

Electricity

3.30

-3.50

1.00 0.40 0.70

1.40

Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14

Mining

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HIGHLIGHTS

INDIAN

ECONOMY AT A

GLANCE

Q4

FY ‘14

INDUSTYRY

DEVELOPMENTS

FINANCIAL

PERFORMANCE

FINANCIAL

PERFORMANCE

PROJECTS

UPDATE

11

1529

999

725

77 169

111 122 24

1582

1059

779

81 166

109 119 26

World Asia China India EU CIS NorthAmerica

Middle East

Jan - Dec '12 Jan - Dec '13

China drives increase in production in 2013; India & ME +ve contributors as well

Global Steel Production (Mt) 3.5%

GLOBAL STEEL INDUSTRY


6%

7.5%

5.1% 1.8% 6.9%

1.9% 1.9%

Source: WSA

12

Global Steel Industry - Production


1553

1303 1243

1377

1607

1298 1250

1413

CY 12 Vs 13 Jan (13 Vs 14) Feb (13 Vs 14) Mar (13 Vs 14)

World

2.7% 0.6%

0.4% 3.5%

725

636 618 687

779

616 621

703

CY (12 Vs 13) Jan (13 Vs 14) Feb (13 Vs 14) Mar (13 Vs 14)

China 7.5%

0.4%

2.2%

in Mt in L MT in L MT in L MT

3.2%

Growth in China was

main driver

Production rebounded in

March ’14, led by recovery

in Chinese production

13

Capacity Utilization ration improves


India’s steel

production (Jan-

Dec’13) up by

5%

(y-o-y)

77 70

65 70

81

70 63

73

CY (12 Vs 13) Jan (13 Vs 14) Feb (13 Vs 14) Mar (13 Vs 14)

India

3.9 %

In L MT In L MT In Mt In L MT

0.0 % 5 % 3.2 %

751

607 591 619

747

613 566

638

CY 12 Vs 13 Jan (13 Vs 14) Feb ( 13 Vs 14) Mar ( 13 Vs 14)

Rest of the World

3.1 %

in Mt in L MT in L MT in L MT

First two month of

year production

declined, while

rebounded by

4%

In March 2014

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.

14

Capacity Utilization ration improves


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

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

Govt. has

approved the

Power System

Development

Fund

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 71145 MW out of total target of 78000 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

17

168,225

4,780 40,531 29,463

243,029

0

50,000

100,000

150,000

200,000

250,000

300,000

(in MW)

148 159 174

200 223

243

0

50

100

150

200

250

300

FY09 FY10 FY11 FY12 FY13 FY14

(in GW)

Source: CEA

POWER SECTOR – INSTALLED CAPACITY (as on 31st Mar 2014)


59.8% 9.0%

0.5%

2.0%

16.7%

12.1%

Coal Gas Diesel Nuclear Hydro RES

145,273 21,782

1,200

4,780

40,531

29,463

Coal Gas Diesel Nuclear Hydro RES

(in MW)

18

POWER SECTOR – INSTALLED CAPACITY (as on 31st Mar 2014)


11 12 13 14 15 18 20

27 31

34

89 88 87 86 85 82 80

73 69

66

2004 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: CEA; Planning commission; Infraline; Analyst report; Company Web sites

100% =

Increasing share of private sector GW

Private Government

133 125 113 160 149 174 200 144 224 243

19

Growth in Thermal Capacity Vs PLF%


94 102

112 132

152

168 77.20% 77.50% 75.07%

73.32%

69.95%

65.55%

50.00%

55.00%

60.00%

65.00%

70.00%

75.00%

80.00%

0

20

40

60

80

100

120

140

160

180

FY09 FY10 FY11 FY12 FY13 FY14

Inst.Cap (in GW) PLF (in %age)

Source: CEA

5.8% 6.2% 6.3% 6.3% 6.5% 6.6% 7.4% 7.8%

10.8%

13.4%

20.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

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Power deficit states


Peak Deficit

All India Avg. 4.5% (Apr’13 to Mar’14)

4.1% 5.4% 5.9% 6.4% 6.9%

9.5%

14.0%

21.9%

All India Avg. 4.2% (Apr’13 to Mar’14)

Base Deficit

Source: CEA

HIGHLIGHTS

INDIAN

ECONOMY AT A

GLANCE

Q4

FY ‘14

INDUSTYRY

DEVELOPMENTS

OPERATIONAL

PERFORMANCE

FINANCIAL

PERFORMANCE

PROJECTS

UPDATE

21



22

Steel - Production & Sales of JSPL


Crude steel

production for FY 13-

14 was 2.88 MTPA

2.93 Million MT sold in

FY 13-14 (3% increase

over last year’s 2.84

MTPA)

NSR showing a strong

trend in Q3 & Q4 of

FY13-14

6.3 6.8

7.9

9.1

6.6 7.4 7.6 7.7

-

2.0

4.0

6.0

8.0

10.0

12.0

Q1 Q2 Q3 Q4

Total Sales (in Lakh MT)

FY13 FY14

7.7

6.9

7.8

7.9

7.1

7.4

7.5

6.9

6.2

6.4

6.6

6.8

7.0

7.2

7.4

7.6

7.8

8.0

Q1 Q2 Q3 Q4

Production of Crude Steel (in Lakh MT)

FY 13 FY 14

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Export of Steel


19

104

140

170

433

119 138

150 141

548

0

100

200

300

400

500

600

Q1 Q2 Q3 Q4 Total

FY - 2012-13 FY - 2013-14

Export Sales (Mt)

26% growth in volume from FY 2012-13 to FY 2013-14

24

JSPL’s Retail – Another Quantum jump


Retail Sales (MT)

9.20% 6.70% 7.40%

8.50% 6.90% 5.00%

4.90%

5.80%

79440

93325

118225

159025

0

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

1,24,121 MT Channel sales in FY 13-14 47% Growth in Retail Sales volume over Q3

25

JSPL’s Retail – Network growth


5

15 17 20

23 25 25 30

40 41 41 41

0

10

20

30

40

50

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

Growth in Distributor Network (from 5 – 41)

267 357

495 511 532 571 653

721 759

955 1014

1128

0

200

400

600

800

1000

1200

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

Growth in Dealer Network (from 267 to 1128)

26

Inventory Reduction drive


16% decrease in inventory as compared to quarter opening

0

100,000

200,000

300,000

400,000

500,000

600,000

31 Dec '12 31 Mar '13 30 Jun '13 30 Sep '13 31 Dec '13 31 Mar '14

Total Inventory (in MT)

23% reduction in total inventory as compared financial year opening

4.04

3.82 3.32

2.98

3.17

3.21

3.44

3.10

3.15

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14

Gross Realisation (Rs/Unit)

27

JPL Power Generation, PLF & NSR (4x250MW)


97.3

98.7 85.0

81.0

99.5

100.1 95.1

95.9 77.4

0

20

40

60

80

100

120


PLF (%age)

2125 2156

1878 1790

2149 2184 2099 2116

1882

0

500

1000

1500

2000

2500


Generation (in Mus)

2% increase in Realization

(Q4 FY14 Vs. Q3 FY14)

28

OVERSEAS OPERATIONS – Q4 UPDATE


Production HBI (MT): 397,623 Sales (MT): 363,813

OMAN

Production (MT): 171,764 Sales (MT): 201,554

SOUTH AFRICA


MOZAMBIQUE


Wollongong Coal Ltd

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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

• 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

Wollongong Coal - Australia

Unique unmatched location with significant strategic

advantages

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HIGHLIGHTS

INDIAN

ECONOMY AT A

GLANCE

Q4

FY ‘14

INDUSTYRY

DEVELOPMENTS

OPERATIONAL

PERFORMANCE

FINANCIAL

PERFORMANCE

PROJECTS

UPDATE

Particulars (Rupees in Crores) For the Quarter ending %

31.03.2014 31.12.2013 31.03.2013 Y ON Y Q ON Q

Turnover-Total 3,686 3,777 4,214 -12.5% -2.4%

-Export 787 896 668 17.7% -12.2%

EBITDA 972 1,210 1,036

PBT 385 546 627 -38.6% -29.4%

Profit after Tax 431 366 477 -9.8% 17.9%

Cash Profit 777 730 817 -4.9% 6.5%

CAPEX 1,101 1,614 820

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Financial results - standalone


Q4 Financial Results

12M Financial Results

Particulars (Rupees in Crores) For the 12 Month ending %

2013-2014 2012-2013 Y ON Y

Turnover-Total 14,544 14,955 -2.7%

-Export 3,275 1,928 69.9%

EBITDA 4,012 4,613

PBT 1,601 2,229 -28.2%

Profit after Tax 1,292 1,593 -18.9%

Cash Profit 2,644 2,788 -5.2%

CAPEX 5,514 4,667 -

Net Debts 23,607 20,441 -

Particulars (Rupees in Crores) For the Quarter ending %

31.03.2014 31.12.2013 31.03.2013 Y ON Y Q ON Q

Turnover-Total 5,103 5,377 5,648 -9.7% -5.1%

EBITDA 1,314 1,701 1,589

PBT 396 819 941 -57.9% -51.6%

Profit after Tax 403 562 760 -47.1% -28.3%

Cash Profit 947 1,093 1,227 -22.8% -13.3%

CAPEX 2,832 2,548 2,439

32

Financial results - Consolidated


Q4 Financial Results

12M Financial Results

Particulars (Rupees in Crores) For the 12 Month ending %

2013-2014 2012-2013 Y ON Y

Turnover-Total 20,004 19,807 1.0%

EBITDA 5,776 6,669 -

PBT 2,512 3,833 -34.5%

Profit after Tax 1,910 2,910 -34.4%

Cash Profit 3,876 4,593 -15.6%

CAPEX 11,520 9,951 -

Net Debts 35,353 24,425 -

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HIGHLIGHTS INDIAN

ECONOMY AT A

GLANCE

Q4

FY ‘14

INDUSTYRY

DEVELOPMENTS

OPERATIONAL

PERFORMANCE

FINANCIAL

PERFORMANCE

PROJECTS

UPDATE

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

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Angul CGP Aerial View


36

Angul CGP 225,000 NM3/Hr


37

Angul DRI – 1.8 MTPA


38

Angul SMS – 2.5 MTPA


39

Angul Plate Mill – 1.5 MTPA


40

Angul Plate Mill – 1.5 MTPA


UT Machine

41

Angul Oxygen Plant


42

Angul Power Plant– 135x6 MW


43

Angul Power Plant – Turbine Hall


44

Angul Coal Washery


45

Angul Railway Siding


46

Raigarh Plate Mill - Heat Treat Leveller


4 Hi Heat treat leveller, Reversible Commissioned in Feb, 2014

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

48

Stockyard at Ghaziabad


49

Stockyard at Ghaziabad


50

JPL – Panoramic view of 4x600 MW


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JINDAL MOZAMBIQUE – COKING COAL & THERMAL COAL MINE


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Wollongong Coal


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Jindal Shadeed SMS– 2 MTPA, COD:23rd April, 2014


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For any information please contact: - D.Balasubramanyam – Head of Investor Relations Tel: - 011-26739166 Mobile: - 8130755166 Email: - [email protected] Ms. Pallavi Kumari – Investor Relations Tel : - 011-26739165 Mobile:-8800094171 Email: - [email protected]

THANK YOU

Q4 & FY’14 - Jindal Steel and Power · limited to, risks and uncertainties regarding fluctuations...

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Transcript of Q4 & FY’14 - Jindal Steel and Power · limited to, risks and uncertainties regarding fluctuations...