Performance Report of JSW, TATA, JSPL in FY’19

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JSW Long Steel Output Up 9% in FY19

JSW Steel, India’s largest private steel producer has released its operational performance results for FY18-19 and as per results, the company’s long steel and flat steel output witnessed significant growth in FY19. Along with that, the company achieved 99.6% of production guidance of 16.75 mnt.

Long Steel output rose by 9% in FY19-

JSW long steel output increased significantly by 9% in FY’19 (Apr-Mar) to 3.87 mnt against 3.56 mnt in FY’18. Spike in demand from key user industries like construction and infrastructure boosted demand for long steel in India.

Thus as per SteelMint assessment on an average basis, trade reference prices of long steel is hovering at INR 42,400/mt (ex-Mumbai) in FY19 against INR 37,000/mt (ex-Mumbai) in FY18. Price mentioned above are basic and GST extra @18% is applicable.

On yearly basis, the long steel production slipped by 7% to 0.99 mnt in Q4 FY’19 (Jan-Mar) in comparison to 1.07 mnt in Q4 FY’18. On quarterly basis, the same went down by 5% in Q4 FY’19 as compared to 1.04 mnt in Q3 FY’19 (Oct-Dec).

Crude steel production up 3% 

JSW Steel registered 3% growth in crude steel output in FY19 (Apr-Mar) to 16.69 mnt in comparison to 16.27 mnt in previous fiscal.

On yearly premises, the output in Q4 FY’19 (Jan-Mar) stood at 4.17 mnt, marginally down by 3% against 4.31 mnt in Q4 FY’18. Whereas, the production in Q4 FY’19 inched down by 1% Q-o-Q basis as compared to 4.23 mnt in Q3 FY’19 (Oct-Dec). Company’s Flat Steel output up by 3% in FY19- Flat steel production registered an increase by 3% in FY19 (Apr-Mar) to 11.74 mnt which was 11.44 mnt in FY’18 (Apr-Mar).

Higher steel prices in the domestic market with improved demand pushed company’s flat steel output last fiscal. Meanwhile on Y-o-Y basis in Q4 FY’19(Jan-Mar) flat steel output stood at 3.01 mnt, inched up by 1% over 2.98 mnt in the same quarter of previous fiscal year. However, the production of flat steel increased by 4% Q-o-Q basis in Q4 FY’19 as compared to 2.9 mnt in the preceding quarter.

 

Tata Steel FY19

Crude steel output surges 35% –

India’s steel giant Tata Steel’s crude steel output surge by 35% in FY19 to 16.81 mnt in comparison to 12.48 mnt in FY18 amid ramp-up at both Kalinganagar and Tata Steel BSL. However, on quarter ly basis the same inched up by 2% to 4.48 mnt in Q4FY19 against 4.38 mnt in the previous quarter

Steel deliveries up by 34% –

Tata Steel, India deliveries increase significantly by 34% in FY19 to 16.26 mnt in which was 12.15 mnt in FY18. On quarterly basis deliveries increased by 21% in Q4FY19 to 4.72 mnt against 3.89 mnt in Q3FY19.

Exports surge  in FY19 –

Company’s export deliveries jumped by 43% in FY19 to 1.65 mnt in FY19 which was 1.15 mnt in previous fiscal. However, on quarterly basis, Tata Steel export sales jumped more than twofold in Q4FY19 to 0.70 mnt which was 0.30 mnt in previous quarter. Tata BSL has increased export deliveries in Q4 amid weaker sentiments in the domestic market in order to avoid piling up of inventory levels.

Automotive sales crossed 2.25 mnt –

In FY19 automotive products sales up by 22% to 2.36 mnt in FY19 which was 1.94 mnt in previous fiscal. However, autos sales decline in Q4 by 20%. Meanwhile, branded products sales were up by 30% and industrial products up by 42% in FY19.

Tata BSL Steel performance –

In FY19, Tata BSL crude steel output stood at 3.58 mnt, deliveries at 3.52 mnt and EBITDA at INR 3033 Cr in FY19. Tata Steel EBITDA doubled in FY19 to INR 23,883 Cr which was INR 15,334 Cr in FY18.

Ramping up Bhushan & Usha Martin may increase output by around 1 mnt- Plans are being made to ramp up at Tata steel BSL and Usha Martin (part of Tata sponge). A major portion of increase will come from Tata steel BSL and Usha Martin and its sale guidance will be reviewed in the coming six months. The expected increase might be around 1 mnt. Company is targeting special steel through Usha Martin business acquisition.

 Steel prices to pick up with improved domestic demand – Domestic steel prices will pick up gradually with better domestic demand and improving pricing sentiments in regional markets. Automotive sector demand remained dull in Q4 FY19 and infrastructure sector witnessed growth in Q4FY19.

 Tata Steel Kalinganagar Phase II expansion:  Company stood by its guidance to ramp up at Kalinganagar plant by 48 months starting from 2017. Company is planning to set Cold rolling mill by next financial year since Hot rolling mill has already been commissioned of 3 mnt. The second step to set up a pellet plant in order to reduce cost and other facilities will be commissioned by FY21-22.

Tata Steel BSL merger to accelerate synergies and consolidation- Tata Steel and Tata Steel BSL have proposed a merger of both the companies in the interest of maximizing value to all stakeholders. The merger will drive operational synergies and efficiency, reduce the regulatory burden and simplify the group structure and recommend a merger ratio of 15 shares of Tata Steel BSL for every 1 share of Tata Steel

UML’s steel business acquisition completed in April 2019 – The acquisition process of Usha Martin’s steel business through Tata Sponge Iron Limited, a subsidiary of Tata Steel, has recently been completed which will be expanding attractive long portfolio. It comprises of specialized 1 mtpa alloy based manufacturing capacity in long products segment based in Jamshedpur and captive power plants

Iron ore supplies to Tata Steel BSL to strengthen- Plans to increase the supply of iron ore to Tata steel BSL from Tata Steel’s captive mines. Environmental clearances have been made however logistics and railway transportation still remains a constraint. Thus Tata steel BSL externally procured 70-80% of iron ore externally (from merchant market) last year.

JSPL Angul BOF
JSPL Angul BOF

JSPL Hits Record High Pellet Production and Dispatch in FY19

JSPL recorded highest ever annual production and dispatch at its 9 mnt pellet plant in Barbil, Odisha. The production recorded at 7.07 mnt and dispatch at 7.17 mnt for the fiscal FY19. The steelmaker has surpassed their previous record of production and dispatch for the 4th consecutive year.

On monthly basis, JSPL witnessed record high pellet production and dispatch at 0.68 mnt and 0.66 mnt respectively. JSPL is a part of the O. P. Jindal Group, with a significant presence in core infrastructure sectors including steel, power, mining, and infrastructure. JSPL’s business operations span across the states of Chhattisgarh, Odisha, and Jharkhand in India, where it operates some of India’s most advanced steel manufacturing and power generation capacities of global scale.

JSPL 9 mnt pa Pelletization Complex is India’s largest single-location pellet manufacturing facility. JSPL has emerged as India’s largest pellet exporter over the last 3 years. As per data maintained with SteelMint, JSPL pellet clocked export volumes of 1.82 mnt in FY19 against 1.92 mnt in FY18.

JSPL Steel Production & Sales Surge in FY19

Jindal Steel and Power Limited (JSPL), one of India’s leading steel producer has reported steel output and sales figures for FY’19 (Apr’18- Mar’19) results. Company’s crude steel output up by 30% in FY19- JSPL’s steel output from Indian operations moved up by 30% in FY19 to 5.25 mnt which was 4.02 mnt in FY18.

Meanwhile, the company’s steel output in its Indian operations registered a surge of 24% on a quarterly basis to 1.51 mnt in Q4 FY’19 as compared to 1.22 mnt in Q3 FY’19.

Whereas the company reported a significant increase in steel production by 20% Y-o-Y basis in Q4 FY’19 against 1.26 mnt in the Q4 FY’18. With the ramp-up of production at Angul, JSPL is confident of accelerating further growth in production & sales.

Company’s sales volume surge by 36% in FY19- JSPL sales volumes increase by 36% in FY19 to 5.12 mnt against 3.76 mnt in FY18. Meanwhile, on quarterly basis sales volume of the company also jumped up by 21% to 1.45 mnt in Q4 FY’19 against 1.2 mnt in the previous quarter of current fiscal. On yearly basis, the same increased by 23% in Q4 FY’19 in comparison to 1.18 mnt in Q4FY18.