Quarterly Result Update

JSW STEEL LIMITED

October 25, 2023

Consolidated Financial Result

In Cr.
Qtr Ending Qtr Ending
Sept. 23 Sept. 22 VAR %
Current Price: ` 747.95
Total Income 44584.00 41778.00 7
OPM (%) 17.63 4.06 1357bps
OP 7862.00 1696.00 364
Other income 826.00 779.00 6
STOCK DATA
PBIDT 8688.00 2475.00 251
BSE Code 500228
Net Finance Charges 2084.00 1523.00 37
NSE Symbol JSWSTEEL
PBDT 6604.00 952.00 594
Reuters JSTL.BO
Bloomberg JSTL IN Depreciation 2019.00 1805.00 12
PBT before EO 4585.00 -853.00 LP
EO 356.23 548.04 -35
PBT after EO 4228.77 -1401.04 LP

VALUE PARAMETERS Tax expense 1812.00 62.00 2823

PAT 2416.77 -1463.04 LP
52 W H/L(Rs) 840.00/619.00
Minority Interest 13.00 -67.00
Mkt. Cap.(Rs Cr) 182907.73
Profit after Minority Interest and 2758.83 -849.82 LP
Latest Equity(Subscribed) 244.55
Share of profit of Associates
Latest Reserve (cons.) 73653.00
EPS (Rs) 7.88 -4.64
Latest EPS (cons.) -Unit Curr. 36.38
JSW Steel Q2FY24 Results: Capex spend was Rs 7795 crore during H1FY24, beats
Latest P/E Ratio -cons 20.56
estimates
Latest Bookvalue (cons.) -Unit Curr. 302.18
Consolidated net sales of JSW Steel has increased 6.72% to Rs 44584 crore. Operating profit
Latest P/BV - cons 2.48
margin has jumped from 4.06% to 17.63%, leading to 364% rise in operating profit to Rs
Dividend Yield -% 0.56 7,862.00 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased
Face Value 1.00 from 62.02% to 51.31%. Purchase of finished goods cost fell from 1.32% to 0.41%. Employee
cost increased from 2.52% to 2.62%. Other expenses fell from 29.57% to 26.83%. Power and
Oil fuel cost fell from 12.01% to 9.13%. Other direct service cost rose from 2.16% to 4.34%.
Other income rose 26.06% to Rs 237 crore. PBIDT rose 251% to Rs 8688 crore. Provision for
interest rose 36.84% to Rs 2084 crore.
SHARE HOLDING PATTERN (%)
PBDT rose 594% to Rs 6604 crore. Provision for depreciation rose 11.86% to Rs 2019 crore.
Description as on % of Holding
Profit before tax reported profit of Rs 4229 crore compared to loss of Rs 1401.00 crore.
30/09/2023 Provision for tax was expense of Rs 1812 crore compared to Rs 62 crore. Net profit reported
Foreign 27.55 was Rs 2759 crore compared to loss of Rs 850 crore. Consolidated crude steel production for the
Institutions 9.51 quarter stood at 6.34 million tonnes, higher by 12% YoY & lower by 1% QoQ. The company had
taken certain scheduled shutdowns at Indian operations during the quarter, hence the average
Govt Holding 0.51
capacity utilization was 89%. Capacity utilization was lower at the Ohio, USA operations due to
Non Promoter Corp. Hold. 8.38
adverse market conditions.
Promoters 44.8
Steel sales for the quarter stood at 6.34 million tonne, higher by 10% YoY & lower by 11% QoQ.
Public & Others 9.27 The company was able to reduce inventories by 0.3 million tonne during the quarter. Domestic
sales at 5.49 million tonne were up 18% QoQ and 8% YoY driven by strong domestic demand
and improvement in product-mix. Exports, at 0.69 million tonne, constituted 11% of sales from
the Indian operations.

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Subsidiaries performance:
JSW Steel Coated Products (Consolidated): During the quarter, JSW Steel Coated
Products, including its subsidiaries, registered a production volume (GI/GL, Tin, CRCA & other
saleable products) of 1.07 million tonnes and sales volume of 1.09 million tonnes. Revenue from
Operations for the quarter stood at Rs 8,965 crore, and EBITDA was Rs 411 crore. The EBITDA
per tonne is marginally lower on QoQ basis mainly due to lower export realisations. The
subsidiary reported a Profit after Tax of Rs 113 crore for the quarter.

Bhushan Power & Steel Ltd (BPSL): During the quarter, BPSL registered Crude Steel
Production of 0.77 million tonnes and Sales volume of 0.80 million tonnes. Revenue from
Operations and Operating EBITDA for the quarter stood at Rs 5,817 crore and 745 crore,
respectively. BPSL reported a Profit after Tax of Rs 210 crore for the quarter.

JSW Steel USA Ohio Inc.: The EAF-based steel manufacturing facility in Ohio, USA, produced
1,51,313 net tonnes of Slabs during the quarter. Sales volumes for the quarter stood at 59,136
net tonnes of HRC and 1,16,091 net tonnes of Slabs. It reported a EBITDA loss of US$29.4
million for the quarter. Lower volumes due to adverse market conditions in the US, as well as
lower steel prices impacted performance during the quarter.

US Plate and Pipe Mill: The Plate & Pipe Mill based in Texas, USA produced 88,090 net tonnes of
Plates and 5,052 net tonnes of Pipes, reporting a capacity utilization of 37% and 4%,
respectively, during the quarter. Sales volumes for the quarter stood at 92,423 net tonnes of
Plates and 6,335 net tonnes of Pipes. It reported an EBITDA of US$ 25.96 million.

JSW Steel (Italy) S.r.l. (Aferpi): The Italy based Rolled long products manufacturing facility
produced 61,520 tonnes and sold 78,651 tonnes of rolled products during the quarter. It
reported an EBITDA of Euro 8.9 million for the quarter. While volumes were higher 000, lower
net realisations impacted EBITDA performance during the quarter.

Update on Projects:
• The 5 MTPA brownfield expansion at Vijayanagar is progressing well, with civil works
underway at the site. The construction activities of all packages are currently underway
and equipment erection has commenced. Erection of one Convertor has been completed in
the Steel Melt Shop. The project is expected to be completed by end of Fy24.

• At JSW Steel Coated Products Limited, the colour coated steel line of 0.12 MTPA in Jammu
and Kashmir is expected to be completed in Q4 FY24.

• The Phase-II expansion (from 3.5 MTPA to 5 MTPA) at BPSL is progressing well and is
expected to be completed by the end of FY24.

• The Company`s capex spend during Q2 FY24 in India was Rs 3,701 crore and consolidated
was Rs 3,816 crore. During H1 FY24 capex spend in India was Rs 7,795 crore and
consolidated was Rs 7,996 crore, against the planned capex spend of Rs 18,800 crore in
India and Rs 20,000 crore consolidated for FY24.

Outlook by the company

There has been a slowdown in the global economy compared to 2022 due to the lingering
impact of the Ukraine conflict as well as unprecedented monetary tightening to combat
inflation. The IMF, in its outlook published in October 2023, expects the global economy to grow
at 3% in 2023, similar to its previous forecast of July 2023, but a drop from 3.5% growth in
2022. There have been regional divergences with the US, India, Japan performing better than
Europe and China. Inflation is cooling but is expected to remain above Central Banks targets.
Downside risks to global growth remain, but the odds of hard landing have receded.

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Additionally, recent geopolitical developments in the Middle East are a concern.

In the US, healthy services sector and strong labour markets are supporting economic growth.
However, the Feds higher for longer stance to control sticky inflation implies elevated rates are
likely to sustain. This could result in a slowdown from the end of CY23. In Europe, growth has
weakened on elevated interest rates and a global slowdown that has affected exports.
Moderating inflation and improvement in global demand will be triggers for recovery.

In China, economic activity had slowed down in early 2023 post the Covid re-opening, and there
has been continued weakness in the property sector. However, China`s strong Q3 CY23 GDP
print of 4.9% along with other economic indicators such as retail sales, industrial production,
services, etc demonstrates positive momentum on the back of targeted policy actions. Further
policy measures could add more legs to the recovery.

In Japan, healthy wage hikes are supporting consumption growth, while manufacturing is
slowing. A prolonged global slowdown is negative for Japanese exports despite the weakness in
the Yen. Amidst a slowing global economy, India remains a bright spot with healthy economic
momentum driven by both manufacturing and services. The government`s thrust on
infrastructure (spends up 48% YoY FYTD August) and positive consumer sentiment are driving
investments. Strong traction in Infrastructure, energy transition, defence and PLI scheme are
driving capex. There is strong interest from global investors and corporates to participate in the
long-term India growth story.

Healthy tax collections on the back of strong economic activity gives the government capacity
for investments and other spending. The festive season demand is shaping up well with healthy
growth in consumption. Auto and residential real estate sectors are witnessing robust demand
growth. Green shoots are visible in the rural economy, with positive traction in 2W demand and
FMCG sales, even as the effects of an uneven monsoon remain a monitorable. Evolving
geopolitics, higher energy prices and a severe global slowdown are key risks to India`s
economic growth momentum in the near term.

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E-mail: [email protected]

Corporate Office: Mumbai Office: Kolkata Office:

11/6B, Shanti Chamber, Lotus Corporate Park , A Wing 401 / 402 , 18, Rabindra Sarani,
Pusa Road, New Delhi - 110005 4th Floor ,Graham Firth Steel Compound, Poddar Court,Gate No.- 4, 5th Floor, Kolkata-700001
Tel: +91-11-30111000 Off Western Express Highway, Jay Coach Signal, Tel: 91-33-39847000, Fax: 91-33-39847004
www.smcindiaonline.com Goreagon (East) Mumbai - 400063
Tel: 91-22-67341600, Fax: 91-22-28805606

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