Research report by Saumitra Mondal

Date: 27/05/2021

A leading steel manufacturing company in India, JSW Steel is the flagship of the
US$ 12 billion JSW Group, which has diversified interests in core industries that support
India’s infrastructure growth. JSW Steel is India's leading integrated steel manufacturer,
operating the country's largest single-location plant, JSW Steel Vijayanagar Works. At
present, company is focused on enhancing domestic steelmaking capacity from 18 MTPA to
45 MTPA within the next decade. The first phase of this journey is underway, with a
committed capex outlay of ₹48,715 crore (FY 2018-19 to FY 2021-22), with nine domestic
and three international manufacturing facilities, wide export reach and strong domestic retail
presence, company is well placed to maximise value across operations. With the largest
product portfolio in steel, JSW Steel is India's largest steel exporter, shipping to over 100
countries across 5 continents. Over the last 35 years, company has been at the forefront of
science and cutting-edge technology. Starting with a single plant in 1982, JSW Steel now
India's leading manufacturer of value-added and high-grade steel products. With plants in
Karnataka, Tamil Nadu and Maharashtra, company has the capacity to produce 22 million
tons per annum (MTPA). Company contributes to 23% Steel production of the country as of
March 2020.
Currently, JSW Steel's total crude steel production capacity stands at (FY21):

18 MnTPA 22 MnTPA 24 MnTPA

Operational Capacity in India Total Operational Capacity Target Capacity in India by
FY2021-22

JSW STEEL STANDALONE KEY NUMBERS (FY21)

15.08MnT 14.88MnT ₹70,727cr. ₹19,259cr. ₹12,942 ₹8,393cr.
Crude steel production Deliveries Turnover EBITDA EBITDA/tonne PAT

Company operates at nine strategically located domestic and three overseas manufacturing
units, along with multiple captive iron ore and coal mines.

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Manufacturing units in India Company’s captive iron mines are
located at
VIJAYANAGAR WORKS Karnataka (Devadri iron ore mine Reserves:
› Key product(s): Crude steel, Hot 28.62 MnT, Bhadra iron ore mine Reserves:
Rolled (HR), Cold Rolled (CR), 33.89 MnT, Rama iron ore mine Reserves:
Galvanised (GI) and Galvalume (GL), 31.53 MnT etc., newly acquired mines are;
wire rods, TMT, slabs, billets
Narayanpura manganese and iron ore mine
› Capacity: 12 MTPA crude steel
› World’s sixth-largest steel plant Reserves: 21.79 MnT, Dharmapura iron ore
› India’s largest single-location steel mine Reserves: 12.21 MnT, BBH Mines
plant Reserves: 61.22 MnT), Odisha (Nuagaon iron
› India’s most productive steel plant ore mine Reserves: 789 MnT, Narayanposhi
iron and manganese ore mine Reserves: 187.6
DOLVI WORKS MnT, Ganua iron ore mine Reserves: 119.2
› Key product(s): HR TMT, billets MnT, Jajang iron ore mine Reserves: 39.4
› Capacity: 5 MTPA crude steel MnT) Jharkhand (Moitra coal block Reserves:
› Strategically connected to a 15 MTPA 30 MnT).
capacity jetty

SALAV WORKS VASIND WORKS KALMESHWAR TARAPUR SALEM WORKS

WORKS WORKS
0.90 MnT 0.45 MnT 0.58 MnT 0.76 MnT 1 MnT

Manufacturing units (International): USA (JSW Steel USA Baytown, JSW Steel USA Ohio),
ITALY (JSW Steel Italy Piombino S.P.A.).

Flat products:
Hot rolled coil (Cold rolling and galvanising, drawing and press forming for automobile and other applications etc.)
Cold rolled coil (Automobile, white goods, cold formed sections, drums & barrels, furniture, general engineering)
Galvanised (GI) Galvannealed (GA) (Automotive (GI and GA), roofing and cladding, ducting, boxes, coolers,
furniture, heat plates, solar heating panels, electrical and light fittings, agricultural equipment, sandwich panels)
Electrical Steel (Electric motors, alternators, power generator, nuclear power stations, transformers, automotive)
Tin plate (Packaging cans, containers of food grade oils, processed food, aerosol and paint cans, battery casings)
Flat Products production capacity of the company: 12.5 MnTPA out of 18 MnTPA Capacity on India

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 Long products:
TMT Bars (Construction, infrastructure)
Special Alloy Steel (Automotive suspension parts, gears and transmission, engine components, chassis
components, fasteners, bearings, shafts, drive trains, power plants)
Wire rods (Automobile, general engineering, cold drawing, cold forming, spring applications, welding, wire ropes,
tools, heat treatment, bearings, office and household equipment)
Long Products production capacity of the company: 5.5 MnTPA out of 18 MnTPA Capacity on India

Demand for steel has a strong correlation with global economic development. The steel
industry contributed 0.7% to global GDP (gross value added US$ 500 billion) (World steel,
May 2019) and employs over 6 million directly and over 40 million indirectly. India
continues to be the second largest producer of crude steel in the world. JSW Steel and
subsidiaries contribute 23% of the steel produced in the country. However, India’s per capita
steel consumption of 74.1 kg is only one third of the global average. The Government of
India has implemented policy interventions to more than double the consumption to 160 kg
by FY 2030-31.
In 2018 trade sentiment was dampened due to liquidity concern in India, in 2019 global trade
sentiment was dampened due to trade war between US and China, concern regarding the
central bank’s stance, Brexit issue. The year 2020 started with a positive note with Brexit,
US China trade war subsidising, continued easing of interest rates by most of the central
banks of the world. But due to the pandemic, worldwide lockdown disrupted the demand and
supply dynamics across the markets.

In the year 2020 the global steel production was at 1,864 Mt (Million Tonnes) down by 0.9%
compared to 2019 1,880.1 Mt because of weak global steel demand due to the pandemic.
China’s crude steel production in 2020 reached 1,053.0 Mt, up by 5.2% on 2019. China’s
share of global crude steel production has increased from 53.3% in 2019 to 56.5% in 2020.
India has secured the second spot with 99.6 Mt of production during the year down from
111.4 Mt in 2019. The table below shows the steel produced by the countries in 2020.

Top 10 steel producing countries

Rank Country 2020(Mt) 2019(Mt) Increase or
decrease in %
1 China 1053.0 1001.3 5.2
2 India 99.6 111.1 -10.6
3 Japan 83.2 99.3 -16.2
4 Russia (e) 73.4 71.6 2.6
5 United States 72.7 87.8 -17.2

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 6 South Korea 67.1 71.4 -6.0
7 Turkey 35.8 33.7 6
8 Germany 35.7 39.6 -10.0
9 Brazil 31.0 32.6 -4.9
10 Iran (e) 29.0 25.6 13.4

Share of global steel production in %

15%
2%
2%
2%
2%
4%
4% 56%
4%
4%
5%

China India Japan Russia United States South Korea Turkey Germany Brazil Iran Rest of the world

In 2019 per capita finished steel consumption was 229.3 kg for the world and 663 kg for
China, the same for India was 74.3 Kg. In India the steel sector was de-licenced and de-
controlled in 1991 & 1992 while the production level was at 14.23 Mt & 16.88 in the
respective years. Since then India has come a long way to become the second largest
producer in the world. In 2017 the Government has released the National Steel policy which
has laid down the path for encouraging long term growth for the Indian Steel Industry.
India’s finished steel consumption is anticipated to increase to 230 Mt by 2030-2031 from
98.71 Mt in 2018-19 & production of 300 Mt by 2030-31. The per capita consumption in
India is expected to increase to 160 Kgs by 2030-31. India’s finished steel consumption grew
at a CAGR of 5.2% during FY16-20. India is the largest sponge iron producer in the world
with 34 Mt capacity, India also produces 5.6 Mt of pig iron.

Sector wise steel consumption in India

5%3%
6%
9%

15% 62%

Construction Capital Goods Automotive

Intermediate Consumer durable Railways

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JSW Steel remains the best volume play in the sector. With the expansion of Dolvi plant the
capacity is expected to reach at 10 MnT, total project cost of which is ₹15,000 crore and is
partially commissioned in March 2021, fully integrated operations are now expected in Sep
2021. Company’s targeted iron ore sourcing was 50%-60% through captive iron ore by end
of FY21. Total planned capex program of US$6.4bn (47,000) of which US$3.1bn was spent
till FY20. US$1.2bn (₹8,232 Crore) of planned capex completed in FY21 Balance capex to
be incurred over FY22 & FY23 in FY22 ₹18,240 Crore, ₹17,465 Crore in FY23 & ₹11,752
Crore in FY24 is expected. A brown field project is planned at Vijayanagar to increase the
steelmaking capacity from 12 MnTPA to 17 MnTPA. Total estimated capex of which is
₹15,000 crore and expansion is expected to be completed by FY 2024.

Company provided guidance for FY22. JSW steel standalone crude steel production and sale
is expected to stay at 19.50 & 18.40 MnTPA, JSW Limited at 19.50 & 18.40, total combined
volumes along with joint control and associates 22.94 & 21.63 MnTPA. By FY24-25
Company’s production capacity of Vijayanagar & Dolvi plant may go up to 19.5MnT plus
10 MnT.

FY 2021 started on a difficult note due to pandemic, followed by a steady recovery in

economic activity. Lockdown across the globe led to weakness in consumption, declining
economic growth. However with the synchronised monetary and fiscal policy measures by
the central banks of the countries the global economy witnessed revival with improving
business sentiments, higher demand and pricing. Strong measures with infrastructure
spending has been improving the demand and supply constraints has led to higher
commodity prices, especially metal prices. The trade level HRC prices in India Was in the
first week of May was ₹67,000/tonne. During the fiscal year 2020-21 export of finished steel
from India was at 10.79MnT higher by 29.1% compared to 2019-20 and imports at 4.75MnT
lower by 29.8%. India docked 63% of exports in March to Italy, Spain, Belgium and Hong
Kong. Indian Iron ore prices have jumped nearly threefold in the past year amid tight
supplies and increasing demand for steel. China’s exchanges in May 2021 raised the trading
limits and margin requirements for some iron ore contracts to cool the prices. Although
experts believe that prices may still remain high for next two to three quarters. Iron prices are
at a decade high globally and will remain elevated at least till FY22. NMDC’s lump ore
prices are around ₹6,970/tonne vs ₹2,250/tonne in May 2020. The main reason for price hike
is supply constraints. Both top iron ore producing states Odisha and Chattisgarh have not
ramped up supply.

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Globally China is the largest producer of Steel producing 1053 MnT crude steel in 2020 &
94 MnT crude steel in March 2021 up by 19.1% on March 2020, India produced 99.6MnT in
2020 & 10MnT in March 2021 up by 23.9% MoM. Jan-Mar China and India 271 & 29.6
MnT in 2021 an increase of 15.6% and 10.4%. This rise in production is led by rising steel
demand by china, US due to credit stimulus, infrastructure investments. One third of the
China’s steel consumption is based on infra 60% of the iron ore required by China is
imported from Australia (664.6MnT iron ore in 2019, 227.7MnT from Brazil). Coal price is
also witnessing ups and downs. In Australia post Covid due to deteriorating relationship with
China, trade tensions commodity prices in the world has been volatile.

In FY20 25.60 MnT iron ore, 11.77 MnT Coal was used in production. In 2019-20, 17 MnT
coal, almost 70% of the iron ore consumption was sourced through import by JSW steel. By
the end of FY21, 50% of the iron ore is expected to be sourced from captive ore mines &
coal requirement which is primarily dependent up on imports, company is acquiring new
coal mines to source that from captive resources. As on March 2020 company had iron ore
reserves of 1.2 billion tonnes which is expected to go up through new acquisition. To
produce 1 MnT of steel 1.6-1.7 MnT iron ore is required.

In FY20 product mix of the company was 72% Flat products, 24% long products, 4% semis
and the product mix was as follows:

Product Mix & revenue segment

Hot rolled products

8% Cold rolled
5%
Galvanised
17% 41%
Colour Coated

5% TMT
8% Wire rods
16%
Others

Company’s revenue was contributed from 52% Value added products, 28% of the revenue
was contributed from Export in FY21 vs 21% in FY20. Company’s key project contributions
and orders are: Flat: Saurashtra Narmada Avtaran Irrigation Yojana (SAUNI Yojana)
supplying 60% of projects steel requirement 87,000 MnT already supplied, PARADIP-
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SOMNATHPUR-HALDIA PIPELINE 16,000 MnT supplied, NARMADA VALLEY
DEVELOPMENT AUTHORITY (NVDA) PROJECTS 100,000 MnT supplied, Express
ways 29,000MnT, Metro 1,38,000MnT, Railways 53,000MnT, bridges 26,000MnT, Airports
16,000MnT, company is also supplying to key atomic, nuclear, thermal and defence, ISRO
projects 47,000MnT. The National Infrastructure Pipeline (NIP) is a noteworthy government
initiative, which holds tremendous promises for the steel sector’s growth. The NIP
announced an investment of ₹102 lakh crore by FY 2024-25, of which roads, energy and
urbanisation will contribute 60% of the total infrastructure build. For FY 2020-21,
infrastructure spending is estimated at ₹19.5 lakh crore, up 43% from ₹13.5 lakh crore for
FY 2019-20.

Annual Performance FY2021

FY 2021 started on a difficult note due to the pandemic, which was followed by a steady
recovery in economic activity. The lockdowns across the globe owing to Covid-19, led to
weakened consumption and decline in economic growth in Ql FY2021. However, with the
synchronised monetary and fiscal policy measures, the Indian and global economy witnessed
revival with improving business and consumer sentiment and higher demand and pricing.
Strong fiscal measures with infrastructure spending being one of the focus areas, led to
strong demand for steel and other metals globally. While services remained constrained due
to the pandemic, manufacturing picked up strongly across the world.

Amidst the fluctuations and uncertainties induced by the pandemic, the Company was able to
gradually normalize its operations from Q2, and ramp up production to cater to the surge in
demand following the pick-up in economic activity in India and globally. Crude steel
production was 15.08 Million tonnes and average capacity utilisation levels reached 96% in
March 2021.

The Company achieved 99% of its standalone sales and revised crude steel production
volume guidance of 15.0 and 15.2 Million tonnes respectively for FY 2021.

Sales of value added and special products (VASP) accounted for 52% of total sales volumes
for the year. JSW has established strong brands over the years, and branded products' sales
stood at 48% of total retail sales. The Company exported 4.23 million tonnes of steel in

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FY2021, an increase of 36% YoY and exports accounted for 28% of total sales (compared to
21% in FY2020).

Debt profile: Even after spending huge amount in capex and in acquisition total debt has
come down this year by ₹1268 Crore. Led by improving EBITDA margin and high metal
price huge de-leveraging opportunity will be there. Total debt has come down from ₹52,998
crore in March 2020 to ₹51,730crore in March 2021.

Ongoing Projects update:

Dolvi Expansion: Pellet Plant, Coke Oven Battery-D and Hot Strip Mill for the plate rolling
part of the expansion project at Dolvi from 5 MTPA to 10 MTPA steelmaking capacity has
been operationalized. Completion work pertaining to the Blast Furnace and Steel Melt Shop
has been impacted by the ongoing Covid disruption. The company now expects full
integrated operations by September 2021.

Vijayanagar: The 8 MTPA Pellet plant was fully commissioned in March 2021 and pellet
production is underway. Post the completion of the Pickling Line and Tandem Cold Mill
(PLTCM) project, one out of two Continuous Galvanising Lines (CGL) has also commenced
production, and the second CGL will be operationalised by Q2 FY2022.

SMS-3 Upgradation: The Caster & Zero Power Furnace were commissioned in March 2021.

Vasind and Tarapur: All expansions (except CGL-4, Continuous Annealing Line (CAL) at
Vasind, and Tinplate Line-2 at Tarapur) are completed. CGL-4 is expected to be
commissioned in Q2 FY2022, CAL by Q4 FY2022 and Tinplate-2 by Ql FY2023.

New Projects:

The Board has approved some key projects, which will enable JSW Steel to continue to meet
the growth in steel demand in India, in line with the Government's national steel policy
projections of 300mtpa capacity requirements by 2030. The new projects approved entail a
capex of ₹25,115 crores (including sustenance & other capex of ₹6,565 crores) spread over 3
years from FY22 to FY24.

5MnTPA expansion at Vijayanagar: JSW Steel will expand its steel-making capacity by
5mtpa at Vijayanagar from the existing 12mtpa at a capex cost of ₹15,000 crores.
Vijayanagar is India's largest single-location steel plant, and this brownfield expansion will
be completed by FY 2024. The company will leverage its strong capabilities and track record
of implementing brownfield expansions efficiently.

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Iron Ore mines in Odisha: JSW Steel has 4 iron ore mine leases in Odisha that were
acquired in auctions in FY2020, and JSW has successfully operationalized and ramped up all
these mines in FY2021. The Company will enhance its mining capabilities and efficiencies
at a capex of ₹3,450 crores. JSW Steel will enhance its own mining infrastructure to reduce
reliance on outsourced mining, implement digitalization, and set up grinding and washing

facilities to improve the quality of the ore which will lead to higher productivity at the steel-
making operations.

Colour coated facility in Jammu & Kashmir: To cater to the growing demand and to
support economic development in the state, JSW Steel will set up a 0.12 MTPA colour
coated downstream steel facility in Jammu & Kashmir. This will entail a capex of ₹l00
crores.

Update on Key M&A:

FY2021 was a successful year on the inorganic growth front, with the Company completing
several strategic acquisitions:

Asian Colour Coated lspat Limited (ACCIL):

Acquired in October 2020 for ₹l,550 crores through the IBC process. Pure-play downstream
company with a capacity of 1 MTPA, with production facilities in Maharashtra and Haryana

Major products: Galvanized and Colour Coated Coils & Sheets mainly for White Goods,
Industrial Sheds, Pipes, Drums and Barrels, etc.

Bhushan Power and Steel Limited (BPSL):

Acquired BPSL in March 2021 with current stake of 49% through IBC process. Payment to
financial creditors in IBC process for 100% stake was ₹19,350 crores. The cash outgo from
the company was ₹5,087 crores. Integrated steel producer with liquid steel capacity of over
2.5mtpa in Jharsuguda, Odisha primarily produces flat steel. Downstream facilities in
Kolkata and Chandigarh acquisition gives JSW Steel strategic presence in Eastern India.

Plate and Coil Mill Division (PCMD) of Welspun Corp Ltd.:

Acquired PCMD business of Welspun Corp for ₹850 crores, manufactures high-grade steel
plates and coils. Located in Anjar, a port based facility in Gujarat with a capacity of 1.2
MTPA, acquisition enables JSW Steel's entry into different grades of steel products, esp.
plates.

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Indian Subsidiaries

JSW Steel coated products: During the year 2019-20, JSW Steel Coated Products
registered a production (Galvanising / Galvalume products / Tin Product) of 1.77 MnT, an
increase by 1% y-o-y. Its sales volume increased by 4% y-o-y to 1.86 MnT during FY 2019-
20. Operating EBITDA for the year stood at ₹550 crores as compared ₹393 crores in FY
2018-19. The net profit after tax stood at ₹296 crores compared to ₹80 crores in previous
financial year.

Amba river coke Ltd.: The Company’s wholly owned subsidiary Amba River Coke
Limited (ARCL) produced 1.01 MnT of coke and 3.55 MnT of pellet during FY 2019-20.
For the year FY 2019-20, the operating EBITDA was at ₹388 crores compared to ₹434
crores in FY 2018-19. The profit after tax increased to ₹194 crores in FY 2019-20 from ₹176
crores in the previous year.

International Subsidiaries

US plate and pipe mill: The US based plate and pipe mill facility produced 0.28 million net
tonnes of plates and 0.07 million net tonnes of pipes, reporting a capacity utilisation of 30%
and 12%, respectively, during the year. However, the global slowdown in the steel industry
impacted its performance. The facility generated a negative EBITDA of US$ 31.69 million
(₹214 crores) as against the previous year’s positive EBITDA of US$ 26.09 million (₹190
crores). Net loss after tax for FY 2019-20 was US$ 117.82 million (₹822 crores) compared
to Net loss after tax of US$ 53.40 million (₹363 crores) in FY 2018-19.

Acero and JSW Steel USA Ohio INC (JSWSUO): The US based HR coil manufacturing
company reported a total HRC production of 0.31 MnT during FY 2019-20. JSW Ohio took
an inventory write down in the year and generated an EBITDA loss of US$ 113.07 million
(₹792 crores) compared to EBITDA loss of US$ 41.62 million (₹294 crores) last financial
year (figures given post acquisition). Loss after tax for FY 2019-20 was US$ 144 million
(₹1,011 crores) compared to loss after tax of US$ 45.74 million (₹323 crores) in FY 2018-
19.

JSW Steel Italy Piombino S.P.A. (JSW PIOMBINO) (formerly known as Aferpi
S.P.A.), Piombino Logistics S.P.A. a JSW Enterprise (formerly known as Piombino
logistics S.P.A) and GSI Lucchini S.P.A.): During FY 2019-20, the Italy based long rolled
products manufacturing facility, reported an EBITDA loss of 31.91million euros (₹236

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crores) compared to 17.37 million euros (₹161 crores) last year. Loss after tax for the year
amounted to 49.1 million euros (₹364 crores) against 15.3 million euros (₹139 crores) in FY
2018-19(figures after acquiring on July 24, 2018).

Joint Venture

Monnet Ispat & Energy Ltd.

In FY 2018-19, the Company, and AION Investments Private II Limited completed the
acquisition of Monnet Ispat & Energy Limited (MIEL) through a jointly controlled entity.
MIEL is a primary steel producer that manufacturer and sells sponge iron, steel, ferro alloys
along with billets and pellets. During FY 2019-20, MIEL undertook a major planned
shutdown to convert its steel melting shop and rolling mills to enable production of special
steels. This was done by strengthening the equipment and providing higher levels of
automation. This resulted in addition to product basket with a variety of cast product sizes
and an upgraded bar mill that can cater to various sectors like automobile, railways and
general engineering. During the year, MIEL produced around 0.83 MnT of sponge iron and
1.66 MnT of pellets, as compared to 0.72 MnT and 0.54 MnT, respectively in FY 2018-19.
In FY 2019-20, MIEL recorded an EBITDA loss of ₹46 crores, compared to EBIDTA loss of
₹15 crores in the previous year. MIEL’s net loss for the year FY 2019-20 was at ₹492 crores
as against a net loss of ₹282 crores in FY 2018-19. (Performance for FY 2018-19 is
calculated from the date of acquisition on August 31, 2018).

Shareholding Pattern of JSW Steel as on 31st March,2021

0.47% Promoter & promoter
group

Mutual Funds
35.15%
44.07%
Foreign Portfolio investor

0.51% Financial
12.69%
4.82% Institutions/Banks/LIC
2.29%
Central/State
Government(s)/President
of India

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 Name of key institutional Shareholders % of
Shareholding
Theleme Master Fund Ltd.(FPI) 12.69
LIC 4.80

PROFIT & LOSS ACCOUNT

STANDALONE 2020-21 2019-20 2018-19 2018-17 2017-16
Revenue from operation 69,458 64,262 77,187 66,234 56,913
Other income 669 628 405 213 255
Total income 71,396 64,890 77,592 66,447 53,675
Total Expenses 58,814 59,289 65,885 59,138 52,037
Profit before exceptional item & 12,582 5,601 11,707 7,309 5,131
Tax
Total exceptional item 386 1,309 0 234 0
Profit before tax 12,196 4,292 11,707 7,075 5,131
Total tax expenses 3,803 (999) 3,586 2,450 1,554
Profit for the year 8,393 5,291 8,121 4,625 3,577

PROFIT & LOSS ACCOUNT

CONSOLIDATED 2020-21 2019-20 2018-19 2018-17 2017-16
Revenue from operation 79,839 73,326 84,757 71,503 60,536
Other income 592 546 204 167 152
Total income 80,431 73,872 84,986 71,670 60,688
Total Expenses 68,334 69,964 73,763 63,797 55,560
Profit before exceptional item & 12,098 3,818 11,168 7,873 5,128
Tax
Total exceptional item 83 805 0 264 0
Profit before tax 12,015 3,013 11,168 7,609 5,128
Total tax expenses 4,142 (906) 3,644 1,538 1,674
Profit for the year 7,873 3,919 7,524 6,113 3,467

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 EARNINGS ESTIMATES
(₹ BILLION) FY19 FY20 FY21 FY22E FY23E
Revenue 847 733 798 1,056 1,095
EBITDA 185 118 192 295 284
PAT 752 391 787 149 143
EBITDA Margin%(S.alone) 19 24 25 28 26
EPS 31.77 16.78 32.91 62.2 59.4
P/E 9.22 8.72 14.23 8.2 8.6
ROE 21.95 11.01 16.9 29.6 22.5

FINANCIAL RATIOS
CONSOLIDATED FY21 FY20 FY19 FY18 FY17
Basic EPS 32.91 16.78 31.77 25.85 14.66
Net debt to equity ratio 1.14 1.48 1.34 1.38 1.85
Gross profit margin 25.96 16.93 22.60 21.30 22.16
Asset Turnover 53.82 55.62 73.75 76.31 63.12
Inventory turnover 5.60 5.29 5.83 5.58 4.88
Return on Capital Employed 15.28 9.27 20.73 18.35 15.19
Return on net worth/Equity 16.9 11.01 21.95 22.19 15.55
Current Ratio 0.83 0.84 0.80 0.80 0.72
Interest service coverage ratio 4.06 1.92 3.86 3.13 2.36
EV/EBITDA 8.66 6.80 6.13 7.98 7.47

KEY BALANCE SHEET

ITEMS ASSETS
CONSOLIDATED FY21 FY20 FY19 FY18 FY17
Property plant & Equipment 58,857 57,625 61,604 57,054 57,786
Capital work in progress 32,433 26,857 11,540 5,629 4,081
Goodwill on consolidation 336 415 840 707 872
Investments (Non-current) 5,604 974 1,184 797 814
Inventories 14,249 13,773 14,548 12,594 11,395
Trade receivable 4,486 4,505 7,160 4,704 4,149
Cash & Cash equivalent 11,943 3,966 5,581 582 917

KEY BALANCE SHEET

ITEMS LIABILITIES
CONSOLIDATED FY21 FY20 FY19 FY18 FY17
Total Equity 46,145 36,024 34,345 27,534 22,401
Borrowings(non-current) 49,731 44,673 29,656 31,723 32,416
Provisions(non-current) 852 348 258 138 97
Deferred tax liabilities 3,509 1,677 3,894 2,604 3,074
Borrowings(current) 1,999 8,325 6,333 2,177 4,881
Total outstanding dues(trades 15,243 17,918 16,159 15,944 13,348
payable)
Other financial liabilities 21,347 14,143 16,831 8,615 9,457

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 KEY CASH FLOW ITEMS
CONSOLIDATED FY21 FY20 FY19 FY18 FY17
Profit/(loss) before taxes 12,015 3,013 11,168 7,609 5,128
Depreciation amortisation 4,679 4,246 4,041 3,387 3,430
Finance cost 3,745 3,924 3,582 3,500 3,546
Operating profit before working 19,455 12,301 18,844 14,920 11,994
capital changes
Net cash from/(used in) 18,789 12,785 14,633 12,379 7,888
operating activities
Purchase of capital assets -9,258 -12,810 -10,206 -4,736 -4,435
Net cash from/(used in) -8,119 -19,586 -11,448 -4,529 -5,094
investing activities
Proceeds from long-term 15,897 20,814 8,999 6,209 4,560
borrowings (net of issue
expenses)
Repayment of long-term -7,562 -11,107 -6,273 -7,298 -5,890
borrowings
Proceeds/(repayments) of short -6,326 1,940 4,155 -2,703 2,541
term borrowings (net)
Interest paid -4,340 -4,520 -3,815 -3,511 -3,569
Net cash from/(used in) -3,110 5,189 1,753 -8,185 -2,710
financing activities
Net increase/(decrease) in cash 7,560 -1,612 4,938 -335 84
and cash equivalents
Opening cash and cash 3,966 5,581 582 917 833
equivalents
Closing cash and cash 11,943 3,966 5,581 582 917
equivalents

JSW Steel Production JSW Steel sales

17 16.69 16
16.27 15.55 15.6
16.5 16.06
15.8 15.5
16
14.9 14.88
15.5 15.08 15 14.7
15
14.5
14.5
14 14
FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21

JSW Steel Production JSW Steel sales

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  National steel policy Mission: (a) Provide environment for attaining –
 Self-sufficiency in steel production by providing policy support & guidance to private
manufacturers, MSME steel producers, CPSEs & encourage adequate capacity
additions.
 Development of globally competitive steel manufacturing capabilities

 Cost-efficient production and domestic availability of iron ore, coking coal and natural
gas
 Facilitate investment in overseas asset acquisitions of raw materials.
 Enhance domestic steel demand.

(b) Objectives: The National Steel Policy aims at achieving the following objectives –

 Build a globally competitive industry with a crude steel capacity of 300 MT by 2030-
31
 Increase per Capita Steel Consumption to 160 Kgs by 2030-31
 To domestically meet entire demand of high grade automotive steel, electrical steel,
special steels and alloys for strategic applications by 2030-31
 Increase domestic availability of washed coking coal so as to reduce import
dependence on coking coal to 50% by 2030-31
 To be net exporter of steel by 2025-26
 Encourage industry to be a world leader on energy and raw material efficient steel
production by 2030-31, in a safe and sustainable manner
 Develop and implement quality standards for domestic steel products

Government is going to boost steel demand focusing the following areas:

Indian steel industry still has significant potential for growth, underscored by the fact that the
per capita steel consumption in the country at 61 kg (incl. rural consumption at 10 kg) is
much lower than the global average of 208 kg. Going forward, the accelerated spend in
infrastructure sector, expansion of railways network, development of domestic shipbuilding
industry, opening up of defence sector for private participation, anticipated growth in
automobile and capital goods industry and the construction in urban & rural areas through

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schemes such as Pradhan Mantri Awas Yojna, Saansad Adarsh Gram Yojna etc. are expected
to create significant demand for steel in the country.

Demand: Global steel demand is expected to increase by 5.8% in CY21 on the back of an
economic recovery and progressive COVID-19 vaccination across regions India steel
demand continues to be high, while a demand recovery in the EU and the UK is expected to
be healthy, driven by a recovery in all steel consuming sectors, especially Automotive.
Improvement in steel demand in Europe is outpacing supply, leading to strong increase in

prices. The management doesn’t see any material impact from a second COVID wave on
volumes as it has sufficient export orders to offset any domestic weakness although due to
emergency oxygen supply for medical purposes deliveries may slow down.

Pricing: The management expects Asia steel prices to remain buoyant. Strong international
steel prices, robust demand, and supply tightness should support steel prices in India and
Europe. This is further supported by higher steel prices in the US.

Raw material: Iron ore prices are expected to remain high due to increased demand and
continued tightness in supply. However, coking coal prices should remain soft.

Chairperson Emeritus: Mrs. Savitri Devi Jindal

Board of Directors
Mr. Sajjan Jindal Chairman and Managing Director, Non-Independent Executive Director
Mr. Seshagiri Rao M.V.S. Joint Managing Director and Group CFO, Non-Independent
Executive Director Dr. Vinod Nowal Deputy Managing Director, Non-Independent
Executive Director Mr. Jayant Acharya Director (Commercial and Marketing), Non-
Independent Executive Director Mr. Gangaram Baderiya Nominee Director, KSIIDC
Mr. Hiroyuki Ogawa Nominee Director, JFE Steel Corp., Japan Mr. Malay Mukherjee
Independent Non-Executive Director Mr. Seturaman Mahalingam Independent Non-
Executive Director Dr. (Mrs.) Punita Kumar Sinha Independent Non-Executive Director
Mr. Haigreve Khaitan Independent Non-Executive Director Mr. Harsh Charandas
Mariwala Independent Non-Executive Director Mrs. Nirupama Rao Independent Non-
Executive Director Chief Financial Officer Mr. Rajeev Pai Company Secretary.
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