JSPL-FinancialResults4QFY20&FY20
1
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
JSPL-FinancialResults4QFY20&FY20
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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
Product(MillionTonnes)Quarter4
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).
JSPL-FinancialResults4QFY20&FY20
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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.
JSPL-FinancialResults4QFY20&FY20
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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).
JSPL-FinancialResults4QFY20&FY20
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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.
JSPL-FinancialResults4QFY20&FY20
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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.
JSPL-FinancialResults4QFY20&FY20
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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.
JSPL-FinancialResults4QFY20&FY20
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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
JSPL-FinancialResults4QFY20&FY20
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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
JSPL-FinancialResults4QFY20&FY20
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PRODUCTION
YearonYear(Standalone)
Product(MillionTonnes)Quarter4
Change(%)2019-20 2018-19
Steel* 1.54 1.57 -2%Pellets 1.90 1.80 +6%
YearonYear(Consolidated)
Product(MillionTonnes)Quarter4
Change(%)2019-20 2018-19
Steel(includingOman)* 2.11 2.01 +5%
SALES
YearonYear(Standalone)
Product(MillionTonnes)Quarter4
Change(%)2019-20 2018-19
Steel* 1.40 1.52 -8%Pellets(ExternalSales) 0.46 0.79 -41%
YearonYear(Consolidated)
Product(MillionTonnes)Quarter4
2019-20 2018-19 Change(%)
Steel(includingOman)* 1.93 1.98 -2%
*includingPigiron
JSPL-FinancialResults4QFY20&FY20
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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)
Product(MillionTonnes) FY20 FY19 Change(%)
Steel(includingOman)* 8.17 7.30 +12%
SALES
FullYear(Standalone)
Product(MillionTonnes) FY20 FY19 Change(%)Steel* 6.06 5.41 +12%Pellets 2.37 2.94 -19%
FullYear(Consolidated)
Product(MillionTonnes) FY20 FY19 Change(%)
Steel(includingOman)* 7.94 6.93 +10%
*includingPigiron
JSPL-FinancialResults4QFY20&FY20
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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%
JSPL-FinancialResults4QFY20&FY20
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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.