JSW Steel Limited
6,031words
5turns
0analyst exchanges
0executives
Key numbers — 40 extracted
₹41,778 crore
₹1,752 crore
₹915 crore
1.04x
2.70x
86%
4.95mt
5.01mt
5.65mt
5.74mt
42%
100%
Guidance — 4 items
Climate Change
opening
“11 Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q2 FY23 Results Presentation 12 Global Economy GDP Growth Forecasts (%YoY) CY22F (July 22) CY22F (Oct 22) CY23F (Oct 22) % 2 .”
Climate Change
opening
“Global growth forecast for 2022 unchanged, 2023 reduced to 2.7% (-0.2%).”
Climate Change
opening
“Note: * GDP forecast for India pertains to fiscal year.”
Credit Ratings
opening
“Phased commissioning in FY24 JSW Steel Q2 FY23 Results Presentation 39 5mtpa expansion: Blast Furnace under construction Key Project Updates – BPSL Phase-I expansion to 3.5 MTPA • Major facilities completed viz.”
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Risks & concerns — 3 flagged
Strong labour markets and high inflation resulting in continued aggressive tightening by the Fed • Europe: Growth slowdown is likely to deepen in 2HCY22 with energy shortages, high inflation and rapid tightening by ECB.
— Climate Change
Tourism has seen some recovery but outlook remains weak for industrial production • Japan: Currency depreciation to hurt trade balance as weak global demand keeps exports subdued.
— Climate Change
Accomodative policy stance remains key risk as inflation continues to rise • China: Strained property sector, continued Covid lockdowns and weakening global demand is hurting growth.
— Climate Change
Speaking time
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Opening remarks
Climate Change
• Aligned to India’s Nationally Determined Contributions for Climate Change as per Paris Accord • Carbon neutrality at JSW Coated by 2030 • >42% reduction in specific CO2 emissions by 2030 (vs. base year 2005) Waste: 100% solid waste utilization Biodiversity: No Net Loss for Biodiversity Waste Water: Zero Liquid Discharge Water Resources: >39% reduction in fresh water consumption by 2030 (vs. base year 2005) Resources Sustainable Mining Social Sustainability Local Considerations Indigenous People Human Rights Supply Chain Sustainability Employee Wellbeing Air Emissions Business Ethics Cultural Heritage Energy Aligned to National & International Frameworks JSW Steel Q2 FY23 Results Presentation JSW Policies for each Focus Area are available on our website Governance & Oversight By Board-level Business Responsibility And Sustainability Committee t n e d n e p e d n I s r o t c e r i D e v i t u c e x E s r o t c e r i D Ms. Fiona Paulus (Chair) Dr. (Mrs.) Punita Kumar Sinha Mrs. Nirupama
Joint Control Entity
JSW Ispat Special Products Ltd. Indian Operations incl. Joint Control* JSW Steel USA Ohio Total Combined Volumes 0.03 5.60 0.08 5.68 0.03 5.67 0.11 5.77 0.13 11.32 0.24 11.56 0.16 10.12 0.26 10.38 JSW Steel Q2 FY23 Results Presentation Note: *Without elimination of inter-company volumes with JVs 21 15 Grades/Products Approved in Q2 FY23 Hot Rolled: High Strength Steel for Auto sub assembly parts Low Carbon Cold Rolled Steel: Bearings Enclosure & Home Appliances Suspension Control Arms(S700MC & S550MC – HR) Electrical Steel: Fully Processed for Stator/Rotor & Pump Motor Core Bearing Cages(IS 513 2016 CR3 – CRCA) Needle Bearing Cage (JIS G3141 SPCC –CRCA) Channel/Drawer slider(SPCC-4D – CRCA) Mixer Motor(50C600 - Electrical Steel, Fully Processed) Low voltage Industrial Motor(50SP660 – Electrical Steel, Semi Processed) Pump Motor Core(50SP660- Electrical Steel, Semi Processed) Channel/Drawer slider(SPCC-4D – CRCA) JSW Steel Q2 FY23 Results Presentation 22 15 Grades/Products Approved in Q
Credit Ratings
o o International: Moody’s: Ba1 (Stable Outlook) and Fitch: BB (Stable Outlook) Domestic: CARE: AA (Stable Outlook), ICRA: AA (Stable Outlook), IndRa: AA (Stable Outlook) Debt Profile • • • • Access to diverse pools of liquidity. Strong relationships with domestic and international banks and financial institutions Net Gearing and Leverage well under stated caps of 1.75x and 3.75x, respectively Successfully raised US$3.69bn through global bond markets since 2014 Issued global steel industry’s first USD Sustainability Linked Bond in September 2021 JSW Steel Q2 FY23 Results Presentation Note: Net Debt/EBITDA on LTM basis 37 Agenda Sustainability Business Environment Operational Performance Financial Performance Outlook & Project Updates Digitalisation at JSW Steel JSW Steel Q2 FY23 Results Presentation 38 Key Project Updates - Vijayanagar 5mtpa brownfield project • Construction activities for all packages underway • Equipment erection commenced for all packages • Project to be completed b
Expand and scale Digital to best-in-class
– – Enhance Sales, Marketing, branding, Customer service and eCommerce Existing plants – Continue digital projects – New plants – ACCIL, JSW-ISPL, JSW- BPSL Support functions – HR, Finance, Logistics, Commercial Integrated Control Tower (ICT) extension to other functions Sustainability and R&D – – – Wave 3 Expanding the art of possible to E2E plant Digitalisation and other functions Wave 2 Digitalisation of procurement E2E Digitalisation of single mfg shop Digital in large project management Wave 1 Accelerated implementation of select use cases across value chain 4 We are here 1 3 2 130+ Digital Assets Created 6,000+ Employees engaged in the digital journey 400+ Digital lighthouses and projects Guiding principles behind Digitalisation Agile • Fail-fast approach • Continuous improvement • Discreet problems Value lens • ROI key to investment • Safety added focus • Customer,Supplier & Employees Experience Sustenance • Nurture inhouse talent • Promote Horizontal deployment • PMO & Governan
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