3q fy14 (dec’ 13) - jindal steel and power · jan-dec '13 jan - dec '12 ... captive...
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Jindal Steel & Power Limited 3
Global Steel Industry .
For Jan to Sep, 2013
1582
1059
779
81 166
109 119 26
1529
999
725
77 169
111 122
24
World Asia China India EU CIS North America Middle East
Global Steel Production (Mt)
Jan-Dec '13 Jan - Dec '12
China Leading the way – India following
Jindal Steel & Power Limited 4
• Pellet prices static • Fines and Lumps
marginally decline - Sep, 13
Raw Material Prices - In India
International Market
Domestic Market
100
110
120
130
140
150
160
170
Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Current
US$
/MT
Pellet 65.5, FOB-Brazil Fine 63.5, CFR-China HCC LV, FOB-Aus
5000
5500
6000
6500
7000
7500
8000
Rs/
MT
Pellet 63.5 Lump 65 Lump 63
• Pellet prices firmed up - Aug, 2013.
• Lumps prices increased
-Aug, 2013
Jindal Steel & Power Limited 5
Finished Product – International Price Trend
Indian Price Trend
400
450
500
550
600
650
Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Latest
International Price Trend (USD/MT)
HRC Export FOB-Black Sea
HRC Export FOB-China
TMT Export FOB Black Sea
TMT Export FOB China
Billet Export FOB Black Sea
Wire Rod -FOB China
Oct –Jan 14: Price movement: - 2% increase in HR Coil - 4% increase in TMT (FOB China) ,while 2% decrease for FOB Black Sea - 2% Increase in Wire Rod (FOB China)
Source: BI - JSPL
Jindal Steel & Power Limited 6
Finished Product - Price trend - India
Indian Price Trend
Source: BI - JSPL
0
5000
10000
15000
20000
25000
30000
35000
40000
Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Latest
Domestic Price Movement
HR Coil Ex Works- Basic Rs/MT
TMT- Raipur Basic Rs/MT
Billet 125-Raipur, Basic Rs/MT
Sponge Iron, Raipur Basic Rs/MT
Pellet 63.5 FOR Barbil
Lump 63- FOR Barbil
Fines 63 FOR Barbil
Oct –Jan 14: Price movement: 3% increase in HR Coil 7% increase in TMT 8% increase in Pellet 5% increse in Lump 12% increse in Fines
Price Realisation is higher in India compared to
International price.
Jindal Steel & Power Limited 7
Indian Steel Industry - Exports Rise
Indian Price Trend
Source: BI - JSPL
Finished Steel : April - Dec '13 Qty (mt) % Change*
Crude Steel Production 59.332 1.8
Import (finished Steel) 4.099 (29.20)
Export (finished steel) 4.136 9.5
Real Consumptionn 53.789 0.5
* over same period of last year
• India - Net Exporter in Dec 2013.
• Imports shows negative growth.
• Real consumption of finished steel marginally up.
Jindal Steel & Power Limited 9
616
2,3842,944
5,7366,452
10,177
13,394
US Australia Russia UK China Brazil India
739 777862
1,403
937831
0
200
400
600
800
1,000
1,200
1,400
1,600
FY08 FY09 FY10 FY11 FY12 FY17E
0%
4%
8%
12%
Energy demand (bn kWh) Energy deficit (%)
Indian Per Capita consumption and Power Deficit
Source: Company filings, World Bank, Global Insight
Pe
r ca
pit
a
con
sum
pti
on
of
po
we
r
Po
we
r g
en
era
tio
n
ind
ust
ry g
row
th r
ate
2011 Annual per capita energy consumption (kWh)
Per capita consumption
of electricity is
significantly below
global average
Significant deficit in
power supply - leading
to huge upside
potential
Jindal Steel & Power Limited 10
Installed Capacity as on 31st Dec, 2013
Indian Price Trend
159,794
4,780
39,893 29,463
233,930
-
50,000
100,000
150,000
200,000
250,000
59%
9%
1%
2%
17%
13%
Coal Gas Diesel Nuclear Hydro RES
148 159
174
200
223 234
0
50
100
150
200
250
FY09 FY10 FY11 FY12 FY13 Q3FY14
138,213
20,381
1,200
4,780
39,893
29,463
Coal Gas Diesel Nuclear Hydro RES
Source: CEA
Jindal Steel & Power Limited 11
Growth in Thermal Capacity vs PLF%
Indian Price Trend
Source: CEA
94 102
112 132
152 160
77.20% 77.50% 75.07%
73.32%
69.95%
64.62%
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 Dec'13
Inst.Cap (in GW) PLF (in %age)
12 Jindal Steel & Power Limited
Large capacity addition targets to meet the demand growth
By fuel type
By sector
199,877
69,280 10,897 3,060 5,300 30,000 318,414
Capacity at the end ofXIth plan
(31-Mar-12)
Coal Hydro Lignite/Gas/LNG Nuclear Renewables Capacity at the end ofXIIth plan
(31-Mar-17)
MW
199,877
46,825 26,182
15,530
30,000 318,414
Capacity at the end of XIth plan(31-Mar-12)
Private Central State Renewables (a) Capacity at the end of XIIth plan(31-Mar-17)
MW
(a) Break up of renewables not available
Source: Planning commission
Jindal Steel & Power Limited 13
Year-Wise Target vs Achievement for 12th Plan
Indian Price Trend
Source: CEA
0 20000 40000 60000 80000 100000
2012-13
2013-14
2014-15
2015-16
2016-17
Total
17956
16402
20408
18820
14950
88536
20623
8264
28887
Ach Tar
14 Jindal Steel & Power Limited
257,481 7,440 27,000
38,000 35,000 364,921
At the end ofXIth plan
(31-Mar-12)
HVDCBipole lines
765 KV 400 KV 220 KV At the endof XIIth plan(31-Mar-17)
CK
M
Sub-station
Robust plan to address transmission bottleneck
XII plan targets
Transmission lines
399,801
149,000 45,000
76,000 669,801
At the end of XIth plan
(31-Mar-12)
765 KV 400 KV 230/200 KV At the end ofXIIth plan
(31-Mar-17)
MV
A
XI Plan: 12,130MW
XII Plan: 17,930MW
XI Plan: 4,220MW
XII Plan: 14,420MW
XI Plan: 1,520MW
XII Plan: 7,920MW
XI Plan: 4,390MW
XII Plan: 12,790MW
XI Plan: 3,630MW
XII Plan: 3,630MW
XI Plan: 1,260MW
XII Plan: 2,860MW
Southern Region
Northern Region
Western Region
Eastern Region
North-Eastern Region
Source: Planning commission
Jindal Steel & Power Limited 16
Ownership structure
Shareholding pattern (as on Dec 31, 2013) Key external shareholders
Shareholder name % held
HSBC Global Investment Funds 2.45
Morgan Stanley Asia (Singapore) PTE 2.20
Lazard Asset Management LLC 1.91
Other institutions 20.11
O P Jindal Group
Founded in 1952 US$18bn conglomerate Multi-national and multi-product steel conglomerate with business interests spanning across mining, power, industrial gases, ports and petroleum
Jindal Saw Mr. P.R. Jindal
JSL Limited Mr. Ratan Jindal
JSW Steel/ JSW Energy Mr. Sajjan Jindal
Jindal Steel & Power Mr. Naveen Jindal
Source: NSE
Promoter Group60%
Institutions
27%
Others13%
Jindal Steel & Power Limited 17
Industry veterans holding the top managerial positions
Mr. Naveen Jindal – Chairman
Member of Parliament; former Minister for Power in the government of Haryana
Ranked amongst the Asia’s 25 Hottest People in Business by the Fortune Asia magazine for turning a struggling steel company into one of Asia’s blue-chip giants
India’s Best CEO by the BT-INSEAD-HBR Study of the top value creators for the period 1995 to 2011 by the Business Today
Featured among the top ten of India Inc's Most Powerful CEOs 2011 by IMRB survey for Economic Times-Corporate Dossier
Conferred with the Ernst and Young Entrepreneur of the Year Award 2010 in the field of Energy and Infrastructure
Management graduate from the University of Texas at Dallas, USA
Mr. Ravi Uppal – Managing Director & CEO
>36 years of experience in eng. and infrastructure
Previously whole-time Director and President & CEO – L&T Group. Also held senior positions at ABB and Volvo
Advanced MBA from Wharton, MBA from IIM Ahmedabad, and B.Tech. from IIT Delhi
Mr. K Raja Gopal – Director & Group CFO
Over 31 years of experience out of which about 21 years has been with ABB
Chartered Account from the Institute of Chartered Accountants of India
Mr. Anand Goel – Chief Advisor
>36 years of experience with the O.P. Jindal Group
Master's Degree in Business Administration from BITS, Pilani
Member of the National Steel & National Mining committees of FICCI and National Mining Committee of CII
Jindal Steel & Power Limited 18
Industry veterans holding the top managerial positions
Mr. Subrat Ratho– MD, CTL & Head of Odisha operations
Previously Managing Director of Maharashtra State Power Generation Company Ltd. and Mahaguj Collieries Ltd.
Managing Director of the Maharashtra State Electricity Transmission Company Ltd. and the MSEB Holding Company Ltd
Joined IAS in 1986
Mr. V K Mehta
Over 36 years of experience in marketing
Previously, he was working with SAIL, Kolkata as its Executive Director, Marketing and was also on the Board of Directors of Mjunction and SAIL-SCI Shipping Co.
Mr. R S Sharma – Managing Director & CEO, JPL
Over 39 years of experience in the power sector
Previously he was the Chairman and Managing Director, NTPC Limited
He has been honoured with several awards including honorary fellowship from International Project Management Association, fellowship of World Academy of Productivity Science
Mr. Jayant Kawale – Managing Director – Hydro & Renewables
Over 28 years in administration in various functional fields both at State and Central Government levels
Worked as Joint Secretary (Hydro) in Government of India
Drafted the current Hydro Power Policy of 2008 and has served on the Boards of all hydro PSUs of Government of India
Mr. V.R. Sharma – Dy. Managing Director & CEO (Steel & Cement)
Experience of 27 years globally in the Steel industry with various organizations
Previously Jt. MD at Bhushan Power & Steel and Executive Director (Corporate) at Ispat Industries
BE (Mechanical) and MBA (Marketing) from the UK
Mr. Rajeev Bhadauria – Director Group HR
>28 years as a HR professional across Public and Private sectors
Previously Regional HR head – NTPC and President HR – Reliance ADA Group
Post Graduate in Industrial Relations from the Power Management Institute, NTPC and LLB from Allahabad University
Mr. Rajesh Bhatia – CEO Global Ventures
Over 20 years of experience in the field of Finance, Accounts, Taxation, Administration and Commercial
Played an important role in JSPL's overseas acquisitions in Australia, Indonesia, South Africa, Mozambique, Madagascar, Mongolia & Oman, apart from arranging financing for greenfield expansion in Orissa and Jharkhand in India.
Jindal Steel & Power Limited 19
Moving towards Plural Leadership
Strategic Governance
Structure
Group Executive Committee
Core Management Team
Senior Management Committee
Operational Governance
Structure
ManCo For each Business
Business Segments
Steel & Cement
Power
CTL
Global Ventures
UniCo For each Location
Jindal Steel & Power Limited 20
JSPL at a glance
Steel &
Cement Power Mines &
Minerals
Business segments
Steel: 3MTPA Hot Briquetted
Iron: 1.5MTPA Pellet Plant: 4.5
MTPA
Operational: 2,437MW
Iron ore: 2 MTPA
Coal: 13 MTPA
Jindal Steel & Power Limited (JSPL) is a major player in steel, power and mining
Captive coal mines -Dongamahua and Tamnar (Chhattisgarh)
Iron ore mine - Tensa, Odisha and Iron ore pelletisation plant at Barbil, Odisha
Also present in Asia, Africa, Australia and Europe
Revenues of US$3.60bn and cash profits of US$0.84bn (FY Mar’13)
Global Venture
Asia Africa Australia Europe Current Capacity
Capacity as on 31st March 2014
Steel: 8.25 MTPA
Pellet Plant: 9.0 MTPA
Operational: 4,507MW
Iron ore: 2 MTPA
Coal: 16 MTPA
Asia Africa Australia Europe
Jindal Steel & Power Limited 21
Product range
Angles and Channels
Fabricated Structures
Hot Rolled Plates and Coils
Parallel Flange Beams
Rails TMT Rebars Wire Rods Power
Jindal Steel & Power Limited 22
Overview of Existing Capacities - Steel and Power
Raigarh Angul Patratu Barbil
Operational
Raipur
Steel : 3 MT
Power: 893 MW
Under implementation
Plate Mill: 1.5MT
SMS Plant: 1.6 MT
Power: 810 MW
Wire Rod: 0.6MT
Bar Mill: 1.0MT
Steel capacity: 3.0 MT
Power: 1,320 MW
Pelletization Plant:
4.5MT
Pelletization Plant:
4.5MT
Machinery & Castings:
11,500 T
Ingots: 30,000 T
CF Castings: 3,000 T
Oman
Phase 1: SMS Plant :
2MTPA
HBI Plant: 1.6 MTPA
Upgradation of existing
facilities from 3 MT to
3.75 MT in Feb/March,
2014
2.5 MT Steel plant
Jindal Steel & Power Limited 23
Expansion Plans - Steel and Power
3.00 3.75 3.75 3.75
2.50 2.50
6.50 2.00 2.00
2.00
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
3.00 8.25 8.25 12.25
Existing Q 4, FY 14 FY 15 FY 16
MTPA
Oman
Angul
Raigarh4.50 4.50 4.50 4.50
4.50 4.50 4.50
0.00
2.00
4.00
6.00
8.00
10.00
4.50 9.00 9.00 9.00
Existing Q 4, FY 14 FY 15 FY 16
Pellet(MTPA)
Pellet-II
Pellet-I
1000 1000 1000 1000
1200 1200 1200
600 1200 1200
0
500
1000
1500
2000
2500
3000
3500
4000
1000 2800 3400 3400
Existing Q 4, FY 14 FY 15 FY 16
2x600 MW-Phase II
2x600 MW-Phase I
4x250 MW
POWER -JPL
Jindal Steel & Power Limited 25
Performance Highlights –FY 14
• 10.8% growth in Production volume (Q o Q)
• Improvement in Steel prices (4% UP Q o Q)
• Retail Sales register 78% growth (Q o Q)
• Reduction of receivables and Inventory.
26 Jindal Steel & Power Limited
Production , Sales and NSR.
7.7
6.9
7.7 7.9
7.1 7.4
8.2
6.0
6.5
7.0
7.5
8.0
8.5
Q1 Q2 Q3 Q4
Production of Crude Steel (in Lakh MT)
FY 13 FY 14
6.3 6.8 7.9
9.7
7.2 8.0 8.1
-
2.0
4.0
6.0
8.0
10.0
12.0
Q1 Q2 Q3 Q4
Total Sales (in Lakh MT)
FY13 FY14
Production volume
Sales volume
NSR
Jindal Steel & Power Limited 27
Export Sales – FY 14
19
104
140
263
119 138 150
406
0
50
100
150
200
250
300
350
400
450
Q1 Q2 Q3 TOTAL
FY - 2012-13 FY - 2013-14
7% growth in Export Sales in Q3 (Q o Q)
54% growth in Export Sales in FY 14 (Y o Y)
In MT
28 Jindal Steel & Power Limited
Launch of Panther Brand on 5th August (National Event Organized)
Launch of Brand in every state being carried out. Jaipur, Raipur, Kolkatta, Guwahati already covered
Launch events in November: Hisar, Patna, Varanasi, Ranchi
Jindalpanther.com launched
731 Hoardings installed
450 Shop boards installed across country. More underway
Training sessions for Distributors & Dealers being organized across country
Launch of Panther TMT Bars Brand
Jindal Steel & Power Limited 29
Retail Volume Growth – FY 14
682
3,534
7,359
17,845 17,092
19,832
35,315
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 Q1 FY 14 Q2 FY 14 Q3 FY 14
78% Growth in Sales Q o Q Basis
5 times growth on Y o Y Basis
Jindal Steel & Power Limited 30
How JSPL and the peers fared….
Indian Price Trend
Source: BI - JSPL
0
1000
2000
3000
4000
5000
6000
7000
8000
JSPL SAIL TATA JSW ESSAR RINL
Flat Product Sales (MT) - (Apr - Dec)
9m FY 12-13 9m FY13-14
JSPL registered 15% growth in Flat product sales
Sail grew by 9% TATA grew by 38% JSW grew by 13% Essar declined by 16%
JSPL emerged the front runner in Long Product Sales
JSPL - 10% growth Sail grew by 5% TATA declined by 7% JSW grew by 6% RINL grew by 7%
0
1000
2000
3000
4000
JSPL SAIL TATA JSW ESSAR RINL
Long Product Sales (MT) - (Apr - Dec)
9m FY 12-13 9m FY13-14
Jindal Steel & Power Limited 32
Jindal Power limited (JPL)
96.43% subsidiary of JSPL
Existing Units 4 X 250 MW Sub Critical Thermal IPP (1000 MW)
Under Implementation 4 X 600 MW Sub Critical Thermal Power Project (2400 MW)
33 Jindal Steel & Power Limited
JPL financials
Particulars Net Sales(Cr.) PAT (Cr.) Generation (MU)
PLF
For the Quarter
3rd Qtr. 2012-13 595 267 2116 96%
2nd Qtr. 2013-14 654 301 2099 95%
1st Qtr. 2013-14 636 321 2184 100%
For the Year
Year 2011-12 2980 1765 8589 98%
Year 2010-11 3338 2002 8598 98%
Year 2009-10 3922 2319 8148 93%
Year 2008-09 3257 1582 6368 79%
34 Jindal Steel & Power Limited
JPL Performance Highlights – FY 14
• JPL topped the list for highest PLF among the major 25 Thermal Power plants above 200 MW capacity.(By CEA Till Dec’13)
• Station achieved Generation of 2116 MUs in Q3 FY14 as compared to 1790
MUs in Q3 FY13. • Heat Rate of 2291 Kcal/Kwh achieved
• Synchronization done for Unit 1 and 2 of 600 MW.
Jindal Steel & Power Limited 36
Summary of International operations
Proposed Cement Plant
Madagascar, Africa
Medium to large size
deposits of prime hard
coking and low ash – low
sulphur thermal coal for
open-cast operation
Indonesia, Asia
Acquired controlling stake
in Gujarat NRE coking coal
Limited
Australia
Developing a coal mine (10 MTPA) in
Mozambique’s coal-rich Moatize
region
Coal resources estimated at 1.2 billion
tonnes including coking coal
Mozambique, Africa
JSPL’s Kiepersol Colliery produces
about 1.2 MTPA of Anthracite coal,
sold domestically and internationally
Plans to ramp up capacity to 2 MTPA
South Africa, Africa
2 MT HBI Plant – plan to
make it an Integrated Steel
Plant
Shadeed, Oman
Acquired CIC Energy in 2012
for 120 Mn USD
Coal Mine with Resource of
over 3 billion MT (high grade
thermal coal)
Botswana, Africa
Jindal Steel & Power Limited 37
Jindal Shadeed –Oman
In July 2010,
JSPL acquired Shadeed Iron & Steel Co. LLC ,
a company incorporated under the laws of the
Sultanate of Oman
Installed a 1.5 MTPA Gas-based HBI plant at Sohar Industrial Port with an investment of US$ 525 million and commenced production in January 2011
Adding a steelmaking facility of 2 MTPA in Oman; it will set up the first integrated steel plant in the Sultanate of Oman
Jindal Steel & Power Limited 38
Performance Highlights – FY 14
GLOBAL VENTURES – OMAN
Oman clocked record sales volume in Q3 FY14 – 498,750 MT (36% increase over Q2 13-14
and 47% increase over Q3 last year)
Production increased to 378,600 MT (20% increase over Q1 13-14)
Sales (in volume) increased to 368,136 MT (40% increase over Q1 13-14, 30% increase
over Q2 last year)
Sales (in Mn USD) increased to 129 Mn $ (33% increase over Q1 13-14, 20% increase
over Q2 last year)
Jindal Steel & Power Limited 39
GLOBAL VENTURES - MOZAMBIQUE
• Allocation for movement of 2,50,000 Tons per quarter obtained on Sena Line
• JSPL Mozambique’s First coal loaded train from Moatize to Beira moved on 07/11/2013
• 95334 MT coking coal production in Q3 13-14 compared to 67120 MT in Q2 13-14
• 99400 MT sales achieved in Q3 13-14 (96,900 MT sold in Q2 13-14)
Performance Highlights – FY 14
Jindal Steel & Power Limited 40
Mozambique, Africa
• Potential Resource: 2 Billion MT
• Grade: Semi Hard coking coal , High Grade
Thermal Coal
• Current Mining @ 1.5 MTPA run rate
• By March 31, 2014 Mining @3 MTPA run rate
• 3 MTPA Coal Washery commissioned
Jindal Steel & Power Limited 41
• GUJARAT NRE Coking Coal Ltd is an ASX listed company producing hard coking coal. • 100% owner of 2 underground mines in NSW, Australia
• NRE No 1 with 314 MT Resources and 92.0 MT of Reserves
• Wongawilli with 337 MT Resources and 33.4 MT of Reserves
• Total Resources 652Mt
•Investment –A$ 214 million made for 65.84% shareholding interest. •Also subscribed to Rights Issue in Feb 2014 – A$ 26 million. •Took over control from 15th November 2013
Gujarat NRE Coking Coal Limited
Jindal Steel & Power Limited 42
South Africa, Africa
Southern Africa head office is based in Johannesburg, South Africa
Operations include Kiepersol Colliery outside the town of Piet Retief in Mpumalanga province
The mine produces high-quality anthracite coal, sold nationally and internationally
Underground mining with 1 MTPA capacity annually
Jindal Steel & Power Limited 43
Indonesia, Asia
Thermal Coal Asset
Large size deposit of low ash – low sulphur thermal coal for open cast operation
Coal mining license obtained in 2009 for 10 years till March 2018 for over 35.9 square Kilometres
Permit received from the Ministry of Forest for the entire concession area
MoU signed with Bupati Barito to develop road for coal hauling
139 hectares acquired for the first phase of mining
Acquired 17.7 hectares for the development of captive coal terminal for coal handling and barge loading at Barito River
Coking Coal Asset
Exploration License over 100 square kilometre in Central Kalimantan
Medium to large size deposits of prime hard coking and thermal coal for open-cast operation Pit Sampling
Jindal Steel & Power Limited 45
Consistent Growth in operations
1,009
1,999 2,039 2,411
3,348 3,642
FYE Mar'08 FYE Mar'09 FYE Mar'10 FYE Mar'11 FYE Mar'12 FYE Mar'13
Revenue (USD Million.)
41%54%
47% 48%38% 34%
FYE Mar'08 FYE Mar'09 FYE Mar'10 FYE Mar'11 FYE Mar'12 FYE Mar'13
20% 6-year CAGR
EBITDA Margin
PAT (USD million.)
333
771875 940 1,025
844
FY Mar'08 FY Mar'09 FY Mar'10 FY Mar'11 FY Mar'12 FY Mar'13
Cash Profit (USD Million.)
230
553668 699 736
535
FY Mar'08 FY Mar'09 FY Mar'10 FY Mar'11 FY Mar'12 FY Mar'13
24% 6-year CAGR
15% 6-year CAGR 6-year CAGR
17%
46 Jindal Steel & Power Limited
Standalone Financials
Note: Exchange rate USD/INR 62.77 for all years
Particulars (Rupees in Cr.) 31.12.2013 30.09.2013 31.12.2012 Y ON Y Q ON Q
Turnover-Total 3,777 3,656 3,821 -1% 3%
-Export 896 930 595 50% -4%
EBITDA 1,210 983 1,278
PBT 546 352 740 -26% 55%
Profit after Tax 366 257 520 -30% 42%
Cash Profit 730 582 814 -10% 25%CAPEX 1,614 1,571 1,411
For the Quarter ending %
Particulars FY %
(Rupees in Cr.) 31.12.2013 31.12.2012 2012-13 Y ON Y
Turnover-Total 10,858 10,741 14,955 1% -Export 2,489 1,260 1,928 98%EBITDA 3,041 3,576 4,613 PBT 1,216 1,601 2,098 -24%Profit after Tax 861 1,115 1,462 -23%Cash Profit 1,867 1,971 2,658 -5%CAPEX 4,413 3,847 4,667
For the 9 Month ending
47 Jindal Steel & Power Limited
Consolidated Financials
Particulars
(Rupees in Cr.) 31.12.2013 30.09.2013 31.12.2012 Y ON Y Q ON Q
Turnover-Total 5,377 4,984 4,802 12% 8%
EBITDA 1,701 1,457 1,790
PBT 819 627 1,147 -29% 31%
Profit after Tax 559 455 870 -36% 23%
Cash Profit 1,093 907 1,285 -15% 20%
CAPEX 2,548 3,571 2,660
For the Quarter ending %
Particulars FY %
(Rupees in Cr.) 31.12.2013 31.12.2012 2012-13 Y ON Y
Turnover 14,901 14,158 19,807 5%
EBITDA 4,463 5,079 6,669
PBT 2,116 2,892 3,833 -27%
Profit after Tax 1,515 2,159 2,912 -30%
Cash Profit 2,929 3,367 4,593 -13%
CAPEX 8,688 7,496 8,983
For the 9 Month ending
48 Jindal Steel & Power Limited
Key Ratios and Net debt Levels
Standalone 2013-14 2013-14 2012-13 2012-13
Ratio (%) Q3 Q2 Q3 Annual
EBITDA to turnover 32.03 26.90 33.45 31.04
Profit before tax to turnover 14.45 9.62 19.37 14.03
Profit after tax to turnover 9.68 7.02 13.62 9.78
Debt Equity Ratio 1.74 1.72 1.65 1.66
Net Debt (Rs. in Cr.) 22,296 21,806 19,562 20,440
Consolidated 2013-14 2013-14 2012-13 2012-13
Ratios (%) Q3 Q2 Q3 Annual
EBITDA to turnover 31.63 29.23 37.27 33.67
Profit before tax to turnover 15.23 12.59 23.89 19.35
Profit after tax to turnover 10.40 9.13 18.12 14.70
Debt Equity Ratio 1.52 1.30 1.15 1.15
Net Debt (Rs. in Cr.) 31,602 29,947 23,435 24,418
*Net Debt as on 31st December, 2013 excludes debt of Rs. 2530 Cr. on the Balance sheet of Gujarat NRE Australia
Jindal Steel & Power Limited 50
Financial Objectives
EBITDA Margin over 30%
Debt / Equity ratio 2:1 (Max)
Net Debt to EBITDA < 4x
Financing Overseas project on its own merits without any
burden on Parent company in India.
Note: Debt excludes any new Strategic Acquisition
51 Jindal Steel & Power Limited
Going Forward: Prime Focus
Commission On-going Projects
Entire Angul Phase – 1 project by March 31, 14
Oman 2 MTPA by March31, 2014
Pellet Plant II by March, 2014
Stabilize production from SMS and Plate Mill in Angul
Target “Break - Even” performance in Mozambique by FY 15
Commission three units of 600 MW at Tamnar by March 31, 2014 and 4th unit in
Q1 of FY 15
To target 45% of total revenue from exports
52 Jindal Steel & Power Limited
New Initiatives
Business Restructured in focussed Business Segments & Business Units
Implementation of Strategic & Operational Governance Structure
Launch of Channel financing
Expanding Geographical reach of Steel sales – New offices setup in South Africa,
Dubai, Indonesia
Entry in new segments with Angul Plate Mill e.g , Wind Mills, Shipbuilding, API
Focus on value added grades
Development of dedicated EPC group for Project Management & Execution
Jindal Steel & Power Limited 54
A responsible corporate citizen
– Has installed state-of-art pollution control devices suitable for the purpose of reducing atmospheric pollution
– Real time check on performance of these devices is done through automated online analyzers such as Opacity Meters and Ambient Air Quality Monitoring Stations
– Water pollution is controlled by adopting a range of stringent regulatory measures and monitoring processes
– Has attained ‘Zero Discharge’ status by adopting state-of-the-art technology for water treatment
– JSPL continuously implements the concept of Green Productivity and takes preventive measures in and around its various facilities
– Rainwater harvesting, mass tree plantation during monsoon is among regular eco-friendly efforts of the company
– Training programmes are offered to the employees of different departments to increase their awareness in housekeeping
– All Roads are cleaned and sanitized, Work areas are regularly maintained and well painted, Water stagnation is not allowed
Environment concerns Control of air pollution Control of water pollution
– The environment management department of
the company takes care of all the activities
related to environmental safeguards
– Basic functions include constant monitoring of
emissions/discharges and their control and
compliance to statutory obligations on all
environmental issues
Solid waste management Ecological conservation House keeping activities
– Pursues the policy of three R’s -- Recycle,
Reduce and Reuse – to managing its waste
– Power is generated from coal rejects, fines and
middlings in AFBC boilers
– Slag generated from blast furnace is 100%
reused in cement manufacturing and brick
making
55 Jindal Steel & Power Limited
A responsible corporate citizen (continued)
– O. P. Jindal Hospital & Research Centre provides facilities including medicine, surgery, gynaecology, orthopedics and pediatrics in the Raigarh district
– Regular village medical camps are organised through mobile medical van services with specialist doctors in Patratu, Angul and Raigarh
– JSPL has been organising family planning camps bringing couples under family welfare
– Cataract operations are conducted for patients annually, free of cost. Spectacles & fruits are distributed to all patients after the operation
– Pulse polio vaccination and HIV/AIDS detection camps are organized from time to time in Raigarh, Patratu and Angul
– For the supply of clean drinking water, non-functional hand-pumps have been repaired in all villages of the operational area
– JSPL has undertaken the responsibility of infrastructure by building approach roads, water tanks, drains and village ponds
– Developed the Kamla Nehru Park and musical fountain in the city that provides leisure, recreation and entertainment to the citizens of Raigarh
– Sports gear has been distributed to several rural youth clubs for promotion of sports & games
– JSPL has made model kitchen gardens for providing vegetables to families aiding mushroom cultivation in pockets, helping in income generation of the people
– Established by the Red Cross Society and the social welfare department at Raigarh
Education Healthcare Community development
– JSPL has set up the O. P. Jindal Global
University (JGU) and the Jindal Global Law
School (JGLS)
– O.P. Jindal Knowledge Park has been formed to
provide opportunity in technical education
– O. P. Jindal School-A 10+2 co-educational
school with all modern facilities at Raigarh
– O.P. Jindal Community College offering 37
technical vocational programmes on five
campuses
– IT Certificate Course of duration of 3/6 weeks for
tribal and marginalized girls belonging to poor
families in the remote village of Kunjimora
– Supports self-help groups for imparting
vocational training in tailoring & embroidery
– Financial support to meritorious and needy
students
Jindal Steel & Power Limited 56
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
Jindal Steel & Power Limited 65
Jindal Power limited (JPL)
Main Plant 258 km transmission line from Raigarh to Raipur
6.9 km cross country pipe conveyor belt for coal transportation
Captive Coal Mine
Jindal Steel & Power Limited 67
Unit 1 – 600 MW
Unit 1 – Boiler Front
View
Unit 1 – Boiler to
EPS
Unit 1 – EPS
Inlet
Unit 1 – Main oil Tank
Jindal Steel & Power Limited 68
Unit 2 – 600 MW
Unit 2 – Boiler Rear view Unit 2 – RHS Mill
Bay
Unit 2 - TG Unit 2 - Tipper
Jindal Steel & Power Limited 69
Unit 3 – 600 MW
U-3 Transformer Yard U-3 Main Oil Tank
U-3 TG U-3 – Boiler Front View