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Jindal Stainless Limited Earnings Release 2019
60705_rns_2019-11-11_30ce645d-e97e-42ec-b5b6-8f72072be61a.pdf
Earnings Release
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November 11,2019
BSE Limited Corporate Relationship Department, 1st Floor, New Trading Ring, Rotunda Building, P J Towers, Dalal Street, Fort, Mumbai- 400 001 Ph. 022-2272 3121,2037, 2041, 3719, 2039, 2272 2061 Email: [email protected] Security Code No.: 532508
National Stock Exchange of India Ltd. Exchange Plaza, 5th Floor, Plot no. C/1, G Block Bandra-Kurla Complex, Bandra (E), Mumbai-400051 Ph. 022 -2659 8237, 8238, 8347, 8348 Email: [email protected] [email protected] Security Code No. : JSL
Sub.: Intimation pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015- Earnings presentation.
Dear Sir,
Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith the Earnings presentation of Jindal Stainless Limited ("the Company"), for the quarter and half year ended September 30, 2019. The same is also being uploaded on the website of the Companywww.jslstainless.cotn.
Please take the above information on record.
Thanking You.
Yours Faithfully For Jindal Ul;;i fjfe.~
...1 &.. N avn eet RaQ\R.ov.;a.rum• Company Seer .... _;_~
Encl: A/a
Jindal Stainless Ltd. CIN: L26922HR1980PLC010901 Corporate Office Jindal Centre, 12 Bhikaiji Cam a Place, New Delhi - 110066, India Registered Office. O.P Jindal Marg, Hisar - 125005 (Haryana) India . T: +91 11 26188345, 41462000, 61462000 • +91 11 41659169 E. [email protected] Web lte: www.jindalstainless.com, www.jslstainless.com
JINDAL STAINLESS LIMITED
Q2 & H1 FY20 Earnings Presentation
November 11, 2019
Disclaimer
This presentation and the accompanying slides (the "Presentation"), which has been prepared by Jindal Stainless Limited (the "Company"), has been prepared purely for information purposes only and is not, and is not intended to be, an offer, or solicitation of offer, or invitation or recommendation or advise to buy or sell or deal with any securities of the Company, and shall not constitute an offer, solicitation or invitation or recommendation or advise to buy or sell or deal with any securities of the Company in any jurisdiction in which such offer, solicitation or invitation or recommendation or advise is unlawful or in contravention of applicable laws. No part, or all, of this Presentation shall be used or form the basis of, or be relied on or referred to in connection with, any contract or investment decision in relation to any securities of the Company. This Presentation is strictly informative and relating to the financial conditions, internal functioning, day to day operations, future events and projections etc. of the Company and this presentation shall not be used or relied upon or referred to in whole or in part, for any purpose whatsoever. The information in this Presentation is being provided by the Company and is subject to change without any notice or liability. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, veracity, fairness, integrity, sufficiency and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and exhaustive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. This Presentation contains statements about future events and expectations that are forward-looking statements. These statements typically contain words such as "expects" and "anticipates" and words of similar import. Any statement in this Presentation that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties, contingencies and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. None of the future projections, expectations, estimates or prospects in this Presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the Presentation. The Company assumes no obligations or responsibility to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. You unconditionally and irrevocable acknowledge and undertake that you will be solely responsible for your own assessment of the market, the market position, the business and financial condition of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. All the risks, liabilities or consequences arising out of or consequent to the use of or reliance on or reference to this Presentation and/or acting on the basis of the analysis/views formed by you, shall be solely borne by you. This Presentation speaks as of the date mentioned herein. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date.
Q2 & H1 FY20 Results Overview
Key Financials Highlights – Q2 & H1FY20
Key Operational Update – Q2 & H1FY20
5
Note: Average quarterly prices; Source: LME
Note: Average quarterly prices; Source: Steel Mint
Q2 FY20 Financial and Operational Discussions (Standalone)
- Net Revenue stood at Rs. 3,170 crore, up 3% Y-o-Y
- o Sales volume rose 13% on Y-o-Y basis to 233,328 tonne, on the back of steady domestic demand
- EBITDA rose 37% Y-o-Y to Rs. 317 crore
- o No major impact of fluctuation in alloy prices on inventory valuation as the rise in nickel prices was off set by fall in ferro chrome and mild steel scrap prices
- o EBITDA margin impacted due to swift surge in imports during the quarter ended September 30, 2019
- Net profit at Rs. 52 crore against net loss of Rs. 36 crore
- o Reduction in net interest by Rs. 14 crore over the CPLY
- o Exceptional gain of Rs. 7 crore in Q2FY20 against the loss of Rs. 53 crore in Q2FY19
- o Lower exception gain of Rs. 7 crore against the gain of Rs. 24 crore in Q1 FY20 impacted the sequential quarter PAT performance
H1 FY20 Financial and Operational Discussions (Standalone)
- Net Revenue rose 1% to Rs. 6,237 crore
- o Sales volume rose 8% on Y-o-Y basis to 455,446 tonne
- o Average sales realizations got impacted due to challenging macro economic situation and higher imports
- EBITDA at Rs. 631 crore, is up 4% Y-o-Y
- o Continuous adoption of cost reduction measures and reduction in stores & spares cost led to consistent EBITDA performance despite the global trade uncertainties and volatility in raw material prices
- Net profit stood at Rs. 119 crore, up 118% Y-o-Y
- o Net interest expenses fell by Rs. 22 crore during the H1FY20
- o Exceptional gain as against loss in CPLY lead to increase in PAT
Management Comment
Commenting on the performance, Mr. Abhyuday Jindal, Managing Director, Jindal Stainless Ltd. said:
"Despite moderate business sentiment, JSL was able to maintain a steady performance through consistent improvement in operational parameters and internal cost efficiencies.
A weak global outlook was compounded by soaring imports from Indonesia over the last few months, adding pressure on margins. Even though the Government's decision to withdraw from RCEP is a welcome move, it is not adequate to keep the domestic industry at the same level as its global peers. We have sensitized the Government about other imminent issues plaguing the industry, and look forward to more such steps in the future."
Abridged P&L Statement (Standalone)
| Particular (Rs. crore) | Q2 FY20 | Q2 FY19 | YoY Change (%) |
H1 FY20 | H1 FY19 | YoY Change (%) |
|---|---|---|---|---|---|---|
| Net Revenue from operations | 3,170 | 3,068 | 3% | 6,237 | 6,206 | 1% |
| Total Expenditure | 2,853 | 2,837 | 1% | 5,606 | 5,600 | 0% |
| EBITDA | 317 | 231 | 37% | 631 | 606 | 4% |
| EBITDA / ton | 13,590 | 11,188 | 21% | 13,852 | 14,311 | (3%) |
| EBITDA margin (%) | 10.0% | 7.5% | 250 bps | 10.1% | 9.8% | 30 bps |
| Other Income | 7 | 7 | 2% | 17 | 13 | 32% |
| Finance Cost |
143 | 157 | (9%) | 284 | 306 | (7%) |
| Depreciation | 104 | 80 | 30% | 205 | 156 | 31% |
| Exceptional gain/(loss)* | 7 | (53) | NA | 32 | (68) | NA |
| PBT | 85 | (52) | NA | 190 | 88 | 116% |
| Tax | 33 | (15) | NA | 72 | 34 | 112% |
| PAT | 52 | (36) | NA | 119 | 54 | 118% |
| PAT margin (%) | 1.6% | NA | NA | 1.9% | 0.9% | 100 bps |
| EPS (Diluted) in INR | 1.1 | (0.8) | NA | 2.4 | 1.1 | 108% |
Note: Standalone financials
* Exceptional items represent net foreign exchange gain/(loss) and mark-to-market gain/(loss) on foreign exchange derivative, forward contracts
Abridged P&L Statement (Consolidated)
| Particular (Rs. crore) | Q2 FY20 | Q2 FY19 | YoY Change (%) |
H1 FY20 | H1 FY19 | YoY Change (%) |
|---|---|---|---|---|---|---|
| Net Revenue from operations | 3,291 | 3,298 | 0% | 6,554 | 6,663 | (2%) |
| Total Expenditure | 2,973 | 3,081 | (4%) | 5,936 | 6,026 | (1%) |
| EBITDA | 318 | 218 | 46% | 618 | 637 | (3%) |
| EBITDA / ton | 13,650 | 10,532 | 30% | 13,577 | 15,050 | (10%) |
| EBITDA margin (%) | 9.7% | 6.6% | 310 bps | 9.4% | 9.6% | (20 bps) |
| Other Income | 7 | 7 | 5% | 17 | 13 | 29% |
| Finance Cost |
147 | 163 | (10%) | 294 | 319 | (8%) |
| Depreciation | 108 | 84 | 28% | 213 | 164 | 30% |
| Exceptional gain/(loss)* | 7 | (55) | NA | 31 | (74) | NA |
| PBT | 75 | (74) | NA | 159 | 100 | 59% |
| Tax | 35 | (15) | NA | 72 | 34 | 113% |
| PAT | 40 | (59) | NA | 87 | 66 | 32% |
| PAT margin (%) | 1.2% | NA | NA | 1.3% | 1.0% | 30 bps |
| EPS (Diluted) in INR | 0.8 | (1.2) | NA | 1.8 | 1.3 | 32% |
Note: Consolidated financials
* Exceptional items represent net foreign exchange gain/(loss) and mark-to-market gain/(loss) on foreign exchange derivative, forward contracts
Abridged Balance Sheet (Standalone)
| ASSETS (Rs. crore) | As at 30th Sept. 2019 |
As at 31st March 2019 |
|
|---|---|---|---|
| ASSETS | |||
| 1) | Non-current assets | ||
| (a) Property, Plant & Equipment | 6,044 | 6,113 | |
| (b) Capital Work-in-progress |
50 | 20 | |
| (c) Goodwill | - | - | |
| (d) Intangible assets | 34 | 29 | |
| (e) Intangible assets under development | 2 | 6 | |
| (f) Investment accounted for using the equity method | - | - | |
| (g) Financial Assets | |||
| (i) Investments | 488 | 486 | |
| (ii) Loans |
41 | 43 | |
| (iii) Others (financial assets) | 6 | 0 | |
| (h) Income tax assets | 20 | 3 | |
| (i) Other non-current assets |
49 | 28 | |
| 2) | Current assets | ||
| (a) Inventories | 2,296 | 2,044 | |
| (b) Financial Assets | |||
| (i) Investments | 0 | 0 | |
| (ii) Trade receivables | 1,029 | 843 | |
| (iii) Cash & cash equivalents | 48 | 6 | |
| (iv) Bank balances other than (ii) above | 12 | 8 | |
| (v) Loans | 10 | 12 | |
| (vi) Others (financial assets) |
163 | 132 | |
| (c) Current Tax Assets (Net) | 6 | 21 | |
| (d) Other current assets | 208 | 226 | |
| Total Assets | 10,507 | 10,021 |
| EQUITY AND LIABILITIES (Rs. crore) | As at 30th Sept. 2019 |
As at 31st March 2019 |
|
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| (a) Equity Share capital | 97 | 96 | |
| (b) Other Equity | 2,525 | 2,379 | |
| (c) Non-controlling Interests |
- | - | |
| LIABILITIES | |||
| 1) | Non-current liabilities | ||
| (a) Financial Liabilities | |||
| (i) Borrowings | 3,051 | 3,153 | |
| (ii) Other financial liabilities | 103 | 26 | |
| (b) Provisions | 7 | 6 | |
| (c) Deferred Tax Liabilities (net) | 199 | 126 | |
| (d) Other non-current liabilities |
330 | 337 | |
| 2) | Current Liabilities | ||
| (a) Financial Liabilities |
|||
| (i) Borrowings | 366 | 473 | |
| (ii) Trade Payables | |||
| (a) Total outstanding dues of micro | 108 | 77 | |
| enterprises and small enterprises | |||
| (b) Total outstanding dues of creditors | 2,549 | 2,243 | |
| other than micro enterprises and small | |||
| enterprises | |||
| (iii) Other financial liabilities | 899 | 904 | |
| (b) Current tax liabilities (net) | - | - | |
| (c) Other current liabilities | 271 | 201 | |
| (d) Provisions | 1 | 1 | |
| Total Equity and Liabilities | 10,507 | 10,021 |
Abridged Balance Sheet (Consolidated)
| ASSETS (Rs. crore) | As at 30th Sept. 2019 |
As at 31st March 2019 |
|
|---|---|---|---|
| ASSETS | |||
| 1) | Non-current assets | ||
| (a) Property, Plant & Equipment | 6,244 | 6,315 | |
| (b) Capital Work-in-progress |
56 | 24 | |
| (c) Goodwill | 0 | 0 | |
| (d) Intangible assets | 34 | 29 | |
| (e) Intangible assets under development | 2 | 6 | |
| (f) Investment accounted for using the equity method | 310 | 277 | |
| (g) Financial Assets | |||
| (i) Investments | 145 | 176 | |
| (ii) Loans |
37 | 39 | |
| (iii) Others (financial assets) | 15 | 0 | |
| (h) Income tax assets | 49 | 31 | |
| (i) Other non-current assets |
59 | 36 | |
| 2) | Current assets | ||
| (a) Inventories | 2,658 | 2,415 | |
| (b) Financial Assets | |||
| (i) Investments | 0 | 0 | |
| (ii) Trade receivables | 944 | 919 | |
| (iii) Cash & cash equivalents | 65 | 36 | |
| (iv) Bank balances other than (ii) above | 13 | 9 | |
| (v) Loans | 12 | 8 | |
| (vi) Others (financial assets) |
160 | 137 | |
| (c) Current Tax Assets (Net) | 6 | 21 | |
| (d) Other current assets | 220 | 235 | |
| Total Assets | 11,029 | 10,715 |
| EQUITY AND LIABILITIES (Rs. crore) | As at 30th Sept. 2019 |
As at 31st March 2019 |
|
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| (a) Equity Share capital | 97 | 96 | |
| (b) Other Equity | 2,618 | 2,495 | |
| (c) Non-controlling Interests |
14 | 12 | |
| LIABILITIES | |||
| 1) | Non-current liabilities | ||
| (a) Financial Liabilities | |||
| (i) Borrowings | 3,051 | 3,153 | |
| (ii) Other financial liabilities | 103 | 26 | |
| (b) Provisions | 16 | 15 | |
| (c) Deferred Tax Liabilities (net) | 204 | 132 | |
| (d) Other non-current liabilities |
330 | 337 | |
| 2) | Current Liabilities | ||
| (a) Financial Liabilities |
|||
| (i) Borrowings | 630 | 743 | |
| (ii) Trade Payables | |||
| (a) Total outstanding dues of micro | 108 | 77 | |
| enterprises and small enterprises | |||
| (b) Total outstanding dues of creditors | 2,658 | 2,411 | |
| other than micro enterprises and small | |||
| enterprises | |||
| (iii) Other financial liabilities | 905 | 953 | |
| (b) Current tax liabilities (net) | 1 | 2 | |
| (c) Other current liabilities | 293 | 263 | |
| (d) Provisions | 1 | 1 | |
| Total Equity and Liabilities | 11,029 | 10,715 |
Comfortable Debt Position
| Borrowings (Standalone) (Rs. crore) |
As on Sept.2019 |
As on Mar.2019 |
As on Mar.2018 |
|---|---|---|---|
| Long term debt | 1,882 | 2,050 | 2,457 |
| Inter corporate loan from related party |
900 | 900 | 900 |
| OCRPS* | 739 | 695 | 607 |
| Total Long term debt |
3,521 | 3,645 | 3,963 |
| Short term borrowing (less than 12 months) |
366 | 473 | 766 |
| Total Debt |
3,887 | 4,118 | 4,729 |
| Cash & Investments | 60 | 14 | 37 |
| Net Debt | 3,827 | 4,104 | 4,692 |
| Long Term Debt Breakup: | |||
| -INR Debt | 3,074 | 3,139 | 3,248 |
| -Foreign Currency Debt | 447 | 506 | 715 |
3.7 3.6 3.3 FY18 FY19 H1 FY20 Net Debt/EBITDA
Note: - Net Debt/ EBITDA calculation based on Standalone financials - H1 FY20 Net Debt/ EBITDA calculation based on TTM figure
Note : *Optionally Convertible Redeemable Preference Shares
| Borrowings (Subsidiaries) (Rs. crore) |
As on Sept.2019 |
As on Mar.2019 |
As on Mar.2018 |
|---|---|---|---|
| Long-Term Debt |
- | - | - |
| Short-Term Debt |
264 | 270 | 286 |
| Total | 264 | 270 | 286 |
- Healthy Cash generation to comfortably support debt repayment
- Focus on further improving debt position going forward
| H1 FY20 | FY19 | FY18 | |
|---|---|---|---|
| EBITDA margin (%) | 10.1% | 9.0% | 11.9% |
| PAT Margin (%) | 1.9% | 1.1% | 3.0% |
| Net Debt to Equity |
1.5 | 1.7 | 2.0 |
| Net Debt to EBITDA | 3.3 | 3.6 | 3.7 |
| Return on Equity (%) | 8.1% | 5.8% | 15.5% |
| Return on Capital employed (%) | 11.4% | 12.0% | 15.6% |
Note:
- 1) H1 FY20 figures, except EBITDA and PAT margin, based on TTM
- 2) Net Debt includes short-term & long term debt less cash & investments
- 3) ROE(%) is calculated as PAT /Avg. Networth
- 4) ROCE(%) is calculated as EBIT /Avg. Capital employed
About Us
Jindal Stainless Ltd. (JSL) is amongst the leading stainless steel manufacturing companies in the world and India's largest stainless steel manufacturer. The Company operates an integrated stainless steel plant at Jajpur, Odisha. The complex has a total stainless steel capacity of 0.8 million tonnes per annum.
JSL has the "State-of-the-Art" machinery and engineering from the best of European suppliers, capable of producing globally competitive stainless steel products. The Company has a wellestablished distribution network with service centers in both domestic and an overseas market to serve its customers.
A leader and a name synonymous with "Enterprise", "Excellence" and "Success", Company"s ethos mirrors most characteristics similar to the metal it produces; akin to stainless steel JSL is innovative and versatile in its thought process; strong and unrelenting in its operations. JSL"s growth over the last 4 decades has been backed by the excellence of its people, value driven business operations, customer centricity, adoption of one of the best safety practices in the stainless steel industry and a commitment for social responsibility.
Goutam Chakraborty / Shreya Sharma Jindal Stainless Ltd Tel: +91 11 2618 8345 Email: [email protected] [email protected]
Anoop Poojari / Devrishi Singh Citigate Dewe Rogerson Tel: +91 22 6645 1211 / 1222 Email: [email protected] [email protected]