Analyst Meet / AGM - Analyst Meet

16-May-2014, 03:40
Jindal Steel & Power (JSPL) held an analyst meet to discuss the performance for the quarter and year ended March 2014. Senior Management of the company addressed the call.

Highlights of the Concall

• During Q4FY'14 the company successfully completed its Angul Phase I steel project with SMS capacity of 1.6 MTPA and Plate Mill capacity of 1.5 MTPA.

• The company also completed second 4.5 MTPA pallet plant in Barbil and with that the total pellet production capacity rose to 9.0 MTPA

• In Oman, 2 MTPA steel plant completed and successfully commenced its commercial production in April, 2014. The plant, Oman's first & largest and Middle East's third largest plant was put into use in just 23 months

• The company also undertook overhaul and up gradation of its existing 3 MTPA plant in Raigarh, which included inter alia, modernization of its Blast Furnaces, EAFs, Plate Mill and Slab Caster. The upgradation which started from January, 2014 is expected to be completed by June ,2014

• Post capacity expansion JSPL steel India capacity has increased from 3 MTPA in FY'13 to 5.5 MTPA in FY'14, Power -JPL capacity has increased from 1000 MW to 2800 MW in FY'14. Pellet capacity has increased from 4.5 MTPA in FY'13 to 9 MTPA in FY'14.

• While the upgradation and modernization would enhance the productivity of the Raigarh unit substantially, in the short term covering Q4FY14 and Q1 FY 15 output from this plant has been affected. This consequently had impact on the physical output and financial performance of the company during Q4FY14

• Exports during FY14 rose by 160% compared to previous year

• The retail business during FY14 grew by 333% compared to FY13.

• Company's relentless efforts to reach out premium market segments and market special grade of steel resulted in significant increase of its Net sales realization (NSR) which in Q4 increased by 9% compared to Q4FY13.

• JSPL's continued focus on Finished Goods inventory management saw it drop from 426,183 MTPA in April 2013 to 327,056 MTPA in March 31, 2013. (23 percent drop).

• Crude steel production for FY'14 was down 5% to 2.88 MTPA compared to 3.02 MTPA in FY'13. For Q4FY'14 Crude steel production was down 13% to 6.9 lakh tonne compared to Q4FY'13

• Capex for Q4FY'14 on a consolidated basis was Rs 2832 crore. For FY'14 Capex on a consolidated basis was Rs 11520 crore

• The company is targeting 15% of its total revenues from exports, EBITDA margin of 30% and a debt equity ratio of 2:1 in FY'15

• JSPL targets to increase its steel capacity to 16.2 MTPA by 2020 from current 7.5 MTPA and pellet capacity to 15.5 MTPA from current 9 MTPA. Further it expects power capacity to increase to 8109 MW by 2020 from current 4527 MW and cement capacity to 2 MTPA from 0.5 MTPA.

• Global steel production increased 3.5% to 1582 million tonne in 2013 led by 7.5% growth in china (779 million tonne), 5.1% growth in India (81 million tonne) and 6.9% growth in middle east (26 million tonne).

• The company is targeting break - even performance in Mozambique by FY'15

• Going forward the company plans to target 45% of total revenue from exports

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