press release 4qfy20 final - jindal steel and power · 2020-05-25 · press release financial...

JSPL-FinancialResults4QFY20&FY20

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PRESSRELEASE

FINANCIALRESULTSFORFOURTHQUARTER&FULLYEARFY2019-20

JSPLReportsreportsProfitofRs.306Cr

• 4QFY20JSPLConsolidatedEBITDARs.2,220Cr• 4QFY20JSPLStandaloneEBITDARs.1,562Cr• 4QFY20JPLcontinuestogeneratecashprofitRs.265Cr• 4QFY20JSPLConsolidatedPATRs.306Cr• NetdebtreducedbyRs.4,379CrinFY20(onconstantcurrencybasis)

JSPLStandalone4QFY20Performance:

§ GrossRevenue:Rs.6,767Cr;§ NetRevenueRs.5,930Cr;§ EBITDA:Rs.1,562Cr;§ EBITDAMargin:26%§ Steel(incl.pigiron)production:1.54milliontonnes§ Steel(incl.pigiron)sales:1.40milliontonnes

JSPLConsolidated4QFY20Performance:§ GrossRevenue:Rs.9,674Cr;§ NetRevenue:Rs.8,835Cr;§ EBITDA:Rs.2,220Cr;§ EBITDAMargin:25%§ EBITDA–Oman:US$63.8mn§ Steel(incl.pigiron)Production:2.11milliontonnes;§ Steel(incl.pigiron)Sales:1.93milliontonnes

JPL4QFY20Performance(YoY):§ Turnover:Rs.913Cr§ EBITDA:Rs.333Cr§ EBITDAMargin:33%§ PowerGeneration:2,430MU

JSPL continued itsmarch in rampingupproduction& sales in the financial year endingMarch’20,

reportingtheeverhigheststeelproductionandsalesvolumes.TheyeargonebysawtheCompany


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betternotonlyon thevolume frontbutalsoon theproductmixwhichmade itmoreresilientand

nimblefortheuncertaintyanddifficulttimeswhichwrappedtheworldduringthelatterpartofthe

reportedquarter.

1. JSPLStandalonePerformance

1.1. FourthQuarterFY20PerformanceDuring4QFY20,JSPLStandalonereportedSteel(incl.pigiron)productionof1.54milliontonnes(vs.

1.57milliontonnesin4QFY19)andsalesof1.40milliontonnes(1.52milliontonnesin4QFY19).

PRODUCTION

Product(MillionTonnes)Quarter4

Change(%)2019-20 2018-19

Steel(incl.pigiron) 1.54 1.57 -2%

SALES


Change(%)2019-20 2018-19

Steel(incl.pigiron) 1.40 1.52 -8%

Inaquarterwhichwasmarkedinitiallybyimprovingrealizationandwherethelatterpartsawsteel

demandgoingdownglobally,theGrossRevenueforJSPLStandalonecameinatRs.6,767Cr.With

thespreadofCovid-19inthemonthsofJan-FeboutsideofChina,theCompanydecidedtobuildits

raw material inventory which helped it to continue production through a period of lockdown

announced in the last week of March by the Government of India. On the back of increased

realizations,supportedslightlybyfallingcosts,JSPLStandalonereportedEBITDAatRs.1,562Cr(a

riseof8%QoQ).

During4QFY20,productionofpelletswas1.90milliontonnes(riseof6%YoY).Thecompanysold

0.46MTduring4QFY20.

1.2. FullYearFY20Performance

Onafullyearbasis,theJSPLStandalonesteel(incl.pigiron)productionrose13%inthereported

yearto6.30milliontonnes(vs5.59milliontonnesinFY19)whileStandaloneSteel(incl.pigiron)

salesincreasedto6.06milliontonnes(up12%YoY).


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PRODUCTION

Product(MillionTonnes) 2019-20 2018-19 Change(%)

Steel(incl.pigiron) 6.30 5.59 +13%

SALES

Product(MillionTonnes) 2019-20 2018-19 Change(%)

Steel(incl.pigiron) 6.06 5.41 +12%

WhilethesteelpricesinIndiasawtremendousvolatilitythroughtheyear, JSPLStandaloneGross

revenue inFY20cameatRs.30,021Cr (down6%YoY). JSPLStandalonereportedEBITDAatRs.

5,777CrforFY20.(down4%YoYinFY19).

PelletcontinuestobeasteadybusinessverticalforJSPL.ThePelletoperationsatBarbilreported

productionof7.28milliontonnes(vs.7.08inFY19).

2. JindalPowerLtd(JPL)

2.1. FourthQuarterFY20Performance

WithimprovingavailabilityofcoalinthequarterendingMarch’20againstthepreviousquarter,the

Companygenerated2,430Millionunitsin4QFY20,ariseof28%from1,900Millionunitsreportedin

3QFY20.

Improvingavailabilityalsoledtoadecreaseintheoverallcoalcostsandbringingfurtherefficiency

inthecoalprocurementprocess.JPLreportedEBITDAofRs.333Cr(riseof29%ascomparedtoRs.

257Crin3QFY20).JPLgeneratedcashprofitsofRs.265Crinthereportedquarter.

2.2. FullYearFY20Performance

Onanannualbasis,JPLgeneratedrevenuesOfRs3,758CrandEBITDAofRs.1,249cr(upXX%YoY).

TheEBITDAmarginforFY20stoodat33%comparedto30%forFY19primarilyduetolowercoal

costs,partiallyoffsetbyfallingrealizations.


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3. GlobalVentures

a. Oman:During4QFY20, Jindal Shadeed recordedproductionof 0.57million tonnesof

steel (as against0.45million tonnes in4QFY19).Omanbusiness reported revenues at

US$268mnandEBITDAatUS$63.8mn. ForthefinancialyearendingMarch’20,Jindal

Shadeedreportedproductionat1.87milliontonnesandsalesat1.88milliontonnes.The

RevenuesandEBITDAforFY20cameatUS$910mn(vs.US$1019mninFY19)andUS$

138mn(VsUS$181mninFY19)respectively.

b. Mozambique: During this quarter, the mine at Chirodzi produced 591KT ROM (up14%YoY).TheMozambiqueoperationscontinuedtorampupproductionthisyearand

endedFY20at2.5milliontonnes(riseof47%comparedto1.71milliontonnesinFY19).

Mozambique operations reported EBITDA at US$2mn for 4QFY20 and US$10.4mn for

FY20.

c. Australia:During4QFY20,bothWongawilli&RussellValeminesremainedundercare& maintenance. In the reported quarter, JSPAL and WCL pursued their restructuring

proposal with the NSW Supreme Court to restructure the debt and make it more

sustainable. WCLcontinuestoworktowardssecuringtheapprovalforitsRussellVale

mines.

4. JSPLConsolidatedPerformance4.1. FourthQuarterFY20PerformanceJSPLproduced2.11million tonnesof Steel (incl. pig iron) on the consolidated level (up5% from

2.01milliontonnesin4QFY19)andsold1.93milliontonnesinthereportedquarter.(1.98million

tonnesin4QFY19).

In 4QFY20, JSPL reported Consolidated Gross Revenue of Rs. 9,674 Cr (down 14 % YoY) while

ConsolidatedEBITDAincreasedtoRs.2,220CrfromRs.1845Cr(up20%YoY).

4.2. FullYearFY20PerformanceOn the Consolidated basis, the Group achieved its ever highest Consolidated Steel (incl. pig iron)

Salesof7.94milliontonnesinFY20,up10%Y-o-Yandeverhigheststeel(incl.pigiron)Production

of8.17milliontonnes(up12%from7.30milliontonnesinFY19).


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JSPLConsolidatedrecordeditsannualGrossRevenueofRs.40,744Cr,6%lowerthanpreviousyear

(Rs.43,471crsinFY19).JSPLConsolidatedEBITDAstoodat7,854Cr.(vs.Rs.8,406CrinFY19).

NetDebttoEBITDA(Trailing)attheendofFY20stoodat4.57x(vs4.66xasofMarch’2019).Asof

March-endFY2020, JSPLreportedConsolidatedNetDebtofRs.35,919Cr.Onaconstantcurrency

basis,based on 31st Mar’19 exchange rates, the Net Debtreported would be Rs. 34,758 Cr (vs.

Rs.39,137Crason31stMarch19)

5. ImpactofCovid-19JSPLhasbeennimbleandagile intheseuncertaintimes,changing itsbusinessmodel tomarket&

sellitssteelproductsinoverseasmarketsmorethandoemsticmarkets.TheCompanyfocussedits

efforts towards securing full export order book to ensure continuous operation of its plant, even

duringthelockdownperiodsannouncedbytheGovernmentofIndia.

Ontherawmaterialside,theCompanyenvisionedsupplychaindisruptionswellbeforetheactual

lockdownwasannnounced,therebyaccumulatingrawmaterialslikecokingcoalandironoretotide

overanyanticipateddisruptions.

Attheplantsites,allprecautionsweretakentostrictlyadheretotheMHAguidelinesandshopfloor

operationswereresortedthroughstaggeredworkingtoensureproperphysicaldistancing.Withthe

continuous support of Indian Railways and various ports in the eastern part of the country (viz

Gangavaram, Vizag, Paradip, etc), the Company was continuously able to capitalize on export

opportunities.JSPLisexportingsteeltoChina,Malaysia,Germany,Spain,Italy,Denmark,Franceand

MiddleEast.

AsthepandemicspreadsintheMiddleEast,constructionactivityhasbeenadverselyimpactedand

countries likeUAE,Kuwait,QatarandOmanarecurrentlyunderlockdown.Thenon-availabilityof

migrant labour has also further amplified the decline in the construction activity in the region,

whichwasalreadyseeingdownturnineconomicactivityduetolowoilprices.

JPL has not had any adverse impact as JPL’s PPAs arewith Tamil Nadu and Kerala and being in

summer season, they have not curtailed any power off-take from JPL and full power is being

scheduledtothesestatesunderthePPAs.


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6. OverviewandOutlook

Steel:

With the advent of Covid-19 around the world by latter half of 4QFY20, the view on the global

economiesbecamegrimandrapidlysawadeclineinthegrowthestimatesworldover.Themid-year

WorldEconomicSituationandProspects(WESP)report,madebytheUNDepartmentofEconomic

andSocialAffairs,estimatesGlobalGDPtoshrinkby3.2percentinCY2020. Whilethedeveloped

economiesexpected toseeacontractionof5%ingrowth,developingeconomiesareestimated to

contract by 0.7%. These estimates are also based on a view that the pandemic starts dwindling

downandeconomiesstartopeningupinthequarterendingSeptemberthisyear.Anynewwaveof

infectionorprolongedlockdownscouldensuefurthernegativesurprises.

WESP expects India to growby 1.2% for CY2020 and 5.5% in CY2021. TheGovernment of India

announcedanationwidelockdownon25thMarch2020topreventthespreadofthedisease.While

the lockdowns helped to prevent the contagion, the economic activity came to a grinding halt.

RecentannouncementsandeconomicreliefpackagesbytheGovernment,alongwiththecalibrated

easingofthelockdownsacrossthecountry,shouldhelptorestartthegrowthengineinthecountry,

albeit slowly. The recovery is expected to be prolonged and could require further sustained

expenditurefromtheGovernmentoverthecourseofthefirsthalfofFY21.

The return to normalcy seems far right now - largely depending onhow the contagion is further

containedwhileatthesametimeensuringeconomicgrowth&employmentforpeoplesothatthey

startspendingagain.

IntermsofoverallSteeldemandwithinthecountry,whilesomedemanddestruction isestimated

due to stoppage/delayed restart of construction sites (on the back of less availability ofmigrant

workforce),fallinoveralldemandforautomobiles,whitegoodsetc.andfurtherdeclineinprivate

expenditure (whichwas already lacking over the past year), thismight be partially offset by the

elevatedlevelsofexportfortheDomesticSteelplayersandcertaincurtailments/shutdownsonthe

supply side.With the lockdown now opening up in a phasedmanner and Government spending

expectedtorise,domesticdemandforlongproductscanbeexpectedtocomebackfasterthanflat

products.


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Power:

NationwidelockdowntocontainCovid-19pandemichaswreakedhavoconalreadystressedpower

sector in the country.Theelectricitydemandhasdeclinedbyabout25%.Thepriceof electricity

discoveredatenergyexchangehasaveragedaroundRs.2.50withsupplybidsfaroutstrippingthe

demand.The electricitydemand continues tobe sluggish till normalcy is restored in commercial

and industrial activities. Due to drop in collections from the consumers, the cash-strapped

distribution companies (Discoms) could not pay even regular monthly energy bills further

worsening the cash flow position of Generation companies (Gencos). Paucity of fund has forced

GencostocurbcoalliftingfromCoalIndiasubsidiaries.However,ontheotherhand,moratoriumon

loanrepaymentforsixmonthsgrantedbyRBIandtimeextensionsbyCoalIndiaLtdforliftingof

coalandmakingpayments, implementationofusanceLChavehelpedGencostoalleviatesomeof

thewoesduringlockdownperiod.TheeconomicpackageofRs.90,000croreforliquidityinjection

to Discoms announced by Hon’ble Finance Minister, Govt. of India for exclusive purpose of

discharging liabilities of Discoms to Gencos is expected to bring relief to Gencos. Slew of other

measures proposed by Hon’ble FM which include imposition of penalty to Discoms for load-

shedding, progressive reduction in cross subsidies, time bound grant of open access, timely

paymenttoGencos,DBT(directbenefittransfer)ofsubsidy,smartpre-paidmeters,privatizationof

DiscomsinUnionTerritorieswouldfosterturnaroundofthestressedpowersectorinthelongrun.

Additionally, policy reforms in the coal sector proposing introduction of commercial mining

throughrevenuesharingmechanisminsteadofregimeoffixedrupees/tonneandexplorationcum

productionregimeforpartiallycoalblocktooinadditiontofullyexploredblocksallowingprivate

sector participation would benefit Gencos by way of enabling them to secure block through

competitiveandtransparentbiddingprocessaswellasbyenhancingavailabilityofcoalsupplyin

openmarketinlongterm.

GiventhattheCompany’spowerbusinessweresetupatoneofthelowestcapitalcostsandhave

theadvantageof lowercoal costsbeingpitheadplants, JindalPowerLimited isall set tobenefit

from the recentgovernment initiatives.Withabout50mines set tobeauctioned in thenext few

weeks, the company can look towin coalmines to secure rawmaterial supply for theentire JPL

powercapacity.Also,withtherecentpackageof theGovernmentof India forDiscoms, JPLwould

looktosubstantiallyrealizeitspendingreceivablesfromTANGEDCO.


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STANDALONEFINANCIALRESULTSYearonYear(Quarter)

Parameter Quarter4 Change(%)2019-20 2018-19

GrossRevenue* 6,767 8,544 -21%NetRevenue 5,930 7,402 -20%EBITDA 1,562 1,440 8%EBITDA% 26% 19% Depreciation+Amortization 568 576 -1%Interest 623 980 -36%PBT(BeforeExceptional) 372 (115) Exceptional - 1,654 PBT 372 (1,769)

PAT 282 (1,154)

QuarteronQuarter

Parameter Q4FY19-20 Q3FY19-20 Change(%)GrossRevenue* 6,767 7,542 -10%NetRevenue 5,930 6,640 -11%EBITDA 1,562 1,352 16%EBITDA% 26% 20% Depreciation+Amortization 568 570 0%Interest 623 634 -2%PBT 372 148 152%PAT 282 97 191%

FullYear

Parameter FY20 FY19 Change(%)Grossrevenue* 30,021 31,806 -6%NetRevenue 26,228 27,730 -5%EBITDA 5,777 6,017 -4%EBITDA% 22% 22% Depreciation+Amortization 2,287 2,307 -1%Interest 2,611 2,896 -10%PBT(BeforeExceptional) 880 829 6%Exceptional - 1,398 PBT 880 (570) PAT 618 (263)

*Incl.GST


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CONSOLIDATEDFINANCIALRESULTS

YearonYear(Quarter)

Parameter Quarter4 Change(%)2019-20 2018-19

GrossRevenue* 9,674 11,304 -14%NetRevenue 8,835 10,159 -13%EBITDA 2,220 1,845 20%EBITDA% 25% 18% Depreciation+Amortization* 757 2,373 -68%Interest 1,008 1,163 -13%PBTBeforeExceptional 480 (1,692) ExceptionalItem 109 1,734 PBT 370 (3,426) PAT 306 (2,713)

QuarteronQuarter

Parameter Q4FY19-20 Q3FY19-20 Change(%)GrossRevenue* 9,674 10,203 -5%NetRevenue 8,835 9,300 -5%EBITDA 2,220 1,820 22%EBITDA% 25% 20% 28%Depreciation+Amortization* 757 1,018 -26%Interest 1,008 1,002 1%PBTBeforeExceptional 480 (201) ExceptionalItem 109 - PBT 370 (201) PAT 306 (219)

FullYear

Parameter FY20 FY19 Change(%)GrossRevenue* 40,744 43,471 -6%NetRevenue 36,944 39,388 -6%EBITDA 7,854 8,406 -7%EBITDA% 21% 21% 0%Depreciation+Amortization* 3,867 5,480 -29%Interest 4,149 4,264 -3%PBT(BeforeExceptional) (136) (1,323) Exceptional 109 1,478 PBT (246) (2,802) PAT (400) (2,412)

*Incl.GST


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PRODUCTION

YearonYear(Standalone)


Change(%)2019-20 2018-19

Steel* 1.54 1.57 -2%Pellets 1.90 1.80 +6%

YearonYear(Consolidated)


Change(%)2019-20 2018-19

Steel(includingOman)* 2.11 2.01 +5%

SALES

YearonYear(Standalone)


Change(%)2019-20 2018-19

Steel* 1.40 1.52 -8%Pellets(ExternalSales) 0.46 0.79 -41%

YearonYear(Consolidated)


2019-20 2018-19 Change(%)

Steel(includingOman)* 1.93 1.98 -2%

*includingPigiron


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PRODUCTION

FullYear(Standalone)

Product(MillionTonnes) FY20 FY19 Change(%)

Steel* 6.30 5.59 +13%Pellets 7.28 7.08 +3%

FullYear(Consolidated)



SALES

FullYear(Standalone)

Product(MillionTonnes) FY20 FY19 Change(%)Steel* 6.06 5.41 +12%Pellets 2.37 2.94 -19%

FullYear(Consolidated)



*includingPigiron


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JINDALPOWERLIMITED(JPL)

(ASUBSIDIARYOFJSPL)

YearonYear(Quarter)

Particulars(inCroresofINR)Quarter4

Change(%)2019-20 2018-19Turnover 913 999 -9%EBITDA 333 267 +25%EBITDA% 36% 27% Depreciation+Amortization 334 324 +3%Interest 208 236 -12%PBT (188) (37) PAT (134) 11 CashProfit 265 368 -28%Generation(millionunits) 2.430 2,609 -7%

QuarteronQuarter

Particulars(inCroresofINR) Q4FY19-20 Q3FY19-20 Change(%)

Turnover 913 784 +16%EBITDA 333 257 +29%EBITDA% 36% 33% Depreciation+Amortization 334 292 +14%Interest 208 219 -5%PBT (188) (111) PAT (134) (83) CashProfit 265 181 +46%Generation(millionunits) 2.430 1,900 +28%

FullYear

Particulars(inCroresofINR) FY20 FY19 Change(%)

Turnover 3,758 3,858 -3%EBITDA 1.249 1,155 +8%EBITDA% 33% 30% Depreciation+Amortization 1,207 1,320 -9%Interest 858 893 -4%PBT(beforeexceptional) (365) (585) PAT (229) (436) CashProfit 961 816 +18%Generation(millionunits) 9,583 10,396 -8%


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FORFURTHERINFORMATIONPLEASECONTACT:ForMediaInteraction: ForInvestorQueries:

1. Mr.RamakrishnaParag(Head-CorporateCommunication)

Tel:+91-11-41462198 Mobile:+91-7428209898 Email: [email protected]

2. Mr.KalyanKumar(CorporateCommunication)

Tel:+91-11-41462198 Mobile:+91-7042027890 Email:[email protected]

1. Mr.NishantBaranwal(HeadInvestorRelations)

Tel:+91-11-41462198Mobile:+918800690255Email:[email protected]

2. Mr.GouravSancheti

(InvestorRelations)

Tel:+91-124-6612317Mobile:+919038240683Email:[email protected]

ForwardlookingandCautionaryStatements:-Certainstatementsinthisreleaseconcerningthefuturegrowthprospectsareforwardlookingstatements,whichinvolveanumberofrisks,anduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromthoseinsuchforwardlookingstatements.Therisksanduncertaintiesrelatingtothesestatementsinclude,butarenotlimitedto,risksanduncertaintiesregardingfluctuationsinearnings,abilitytomanagegrowth,intensecompetitionwithinsteelindustryincludingthosefactorswhichmayaffectcompany’scostadvantage,timeandcostoverrunsonfixed–price,company’sability tomanageoperations,reduceddemandforsteel ,poweretc., TheCompanydoesnotundertaketoupdateanyforwardlookingstatementsthatmaybemadefromtimetotimebyoronbehalfoftheCompany.Thenumbers&statementsinthisrelease(includingbutnotlimitedtobalancesheetrelateditems)areprovisionalinnatureandcouldmateriallychangeinfuture,basedonanyrestatementsorregroupingofitemsetc.

press release 4qfy20 final - jindal steel and power · 2020-05-25 · press release financial...

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