JSW Steel is India's second largest steel producer with a capacity of 27 MTPA. It has integrated steel plants located strategically across India as well as international manufacturing facilities in the US and Italy. The company aims to expand its crude steel capacity to 45 MTPA by 2030. Key growth drivers for the Indian steel industry include the National Infrastructure Pipeline, housing construction initiatives, and infrastructure projects like Bharatmala and Sagarmala. JSW Steel caters to major sectors like automotive, construction, and engineering with a wide range of steel products.

1. JSW Steel
Initiating Coverage Report
Share
Holding
Pattern
SeSep-22 Jun-22Jun-
22
FY-21-22Y-22
Revenue
(In Cr)
32,494.00 31,105.00 1,18,820.00
Net
Profit
-91 956 16,702.00
EPS -0.38 956 69.48
Cash EPS 4.65 8.85 88.39
OPM% 6.66 11.69 27.84
NPM% -0.28 3.07 14.06
Market Cap: ₹171,188 Cr
Share Price: ₹708 (18th
Nov Closed Price)
EPS: ₹31.4
PE: 22.7
P/B ratio: 2.50
Book Value: ₹ 257
ROE: 37.6 %
Debt/Equity: 1.25
JSW Steel is primarily engaged in the business of manufacture
and sale of Iron and Steel Products.
The company aims to expand its crude steel capacity from 18
MNTPA in FY20 to 45 MNTPA within the next decade.
In 2021, the company completed the acquisition of BPSL and
became the second largest steel producer in India.
The company is the owner of single largest steel plant in India
with a capacity of 12 MNTPA.
Product portfolio
The company's diversified portfolio comprises products under
hot-rolled, cold-rolled, galvanneal, galvanised/galvalume, pre-
painted, tinplate, electrical steel, TMT bar, wire rod, special
steel bar, round and bloom categories
Capacity Utilization
The utilization rates over last few years were as follows:
FY16 - 79%
FY17 - 88%
FY18 - 90%
FY19 - 93%
FY20 - 89%
Distribution Networks
The company's distribution network includes 11,000+ exclusive
and non-exclusive retail outlets. It also has export footprints in
over 100 countries across five continents.
The company has strong presence in South and West India.
Manufacturing Capabilities
The company's crude steel capacity was just 2.5 MNTPA in
FY06. It expanded its capacity to 7.8 MNTPA by FY10 and now
has a total capacity of 18 MNTPA in FY20 Vijayanagar Works -
12 MNTPA, Dolvi Works - 5 MNTPA, Salem Works - 1 MNTPA.
Raw material Security
In FY20, the company emerged as a preferred bidder for 4 iron
ore mines in Odisha and 3 in Karnataka. The mines were
allotted to the company and it plans to spent ~800 crores to
operationalize these mines.
The company captive iron ore as a % of total ore procurement
was just 4% in FY19 and 15% in FY20.
Shareholding Pattern

2. 2
JSW steel company overview
Jindal South West steel (JSW) is 2nd
largest producer of steel in India with a domestic crude steel
capacity of 27 MNTPA, following Tata steel which stands at total crude production capacity of 31
MNTPA. JSW steel has international presence of 1.5 MNTPA. JSW is present in strategically located
geographies across India, USA and Italy. The majority of their capacity is fulfilled by four integrated
steel plants at Vijayanagar, Dolvi, Salem and Odisha. has operationalized 13 mines (captive) across
Karnataka and Odisha, which provides long-term iron ore supply and price security. They have 9
downstream operations across central and northern India, they have 3 international manufacturing
units in Ohio, Baytown USA and Palomino, Italy. JSW’s steel production is 19.51 MNTPA, the total iron
utilized by JSW steel is 32.13 MNTPA out of which 43% comes from captive mines, with JSW has an
average capacity utilization of 89%.
Revenue Growth over years
2017 2018 2019 2020 2021 2022
Revenue 56,913 73,211 77,187 63,546 79,839 1,46,37
0
50,000
1,00,000
1,50,000
2,00,000
Revenue
2017 2018 2019 2020 2021 2022
EBITDA 5,131 7,873 11,707 5,601 12,582 29,569
0
10,000
20,000
30,000
40,000
EBITDA
1,554
7,651 8,121
5,291
7,873
20,938
0
5,000
10,000
15,000
20,000
25,000
2017 2018 2019 2020 2021 2022
PAT

3. 3
Peer Dashboard
This is about the List of Top 10 Steel Companies in India. As per the Ministry of Steel, India is
the second-largest crude steel producer globally, with a capacity of over 138 million tons
Top 10 steel producing companies and their share in total crude steel production
Graphical representation of market share
Sr No Top steel producing companies
in India
Capacity Sales/Production
2021-2022
Profit in 2022
₹crore
1 Tata Steel 34 million tons 31.03 MNT ₹41,749
2 JSW Steel 27 million tons 19.51 MNT ₹20,938
3 SAIL 21 million tons 16.897 Mt ₹12,015.04
4 ESSAR Steel India Ltd 10 million tons - -
5 Jindal Steel & Power Ltd 11 million tons 8.01MT ₹2,884.66
6 Rashtriya Ispat Nigam Ltd 7.3 million tons - -
7 Electrosteel Steel Ltd 7.3 million tons 3 MTPA (₹9,459.19) Lakhs
8 Jindal Stainless Ltd 0.8 million tons 3.21Mt ₹1,673.56
9 RNL Powergrid TLT Pvt Ltd 0.7 million tons - -
34
18
21
10
11
7.3
7.3
0.8 0.7
Market share (million tonns)
Tata Steel JSW Steel SAIL
ESSAR Steel India LTD Jindal Steel & Power LTD Rashtriya Ispat Nigam Ltd
Electrosteel Steel Ltd Jindal Stainless Ltd RNL Powergrid TLT Pvt Ltd

4. 4
Geographical presence
1. JSW Steel is present in Vijaynagar, Karnataka is JSW’s a flagship plant having a capacity of 12
MTPA.
2.Dolvi works JSW dolvi works is a 10 MTPA integrated steel plant located strategically in west coast
of Maharashtra.
3. Salem Works: JSW Steel’s Salem plant is its largest specialty steel plant in India, with a production
capacity of 1.0 MTPA, is present in Tamil Nadu India.
Key sectors driving steel demand
• Building and construction (40%)
• Infrastructure (30%)
• Engineering and packaging (20%)
• Automotive (10%)
The building and construction sector contributed to about 40 % of India's steel demand as of
financial year 2020. Furthermore, Infrastructure industry contributed 30% of total steel demand in
India followed by engineering and packaging industry contributing 20% and Automotive industry
contributing 10% to total steel demand in India.
Product Mix
Product Name Year Month Sales
Quantity
Sales Value
(Rs Crore)
Product
Mix (%)
Hot Rolled
Coils/Plates/Sheets
2020 12 9434927 62,272.00 52.4
Coils & Sheets
(Galvanised)
2020 12 648194 5,540.00 4.66
Iron Ore 2020 12 11867227 3,894.00 3.27
Billets & Blooms 2020 12 419711 3,088.00 2.59
Others 2020 12 - 2,673.00 2.24
Rolled Product 2020 12 3875032 22,167.00 18.65
Coils (Cold Rolled) 2020 12 1980059 16,247.00 13.67
Other Operating
Revenue
2020 12 - 1,892.00 1.59
M S/S S Slabs 2022 12 161652 1,047.00 0.88

5. 5
JSW’s EBITDA margin and PAT margin over years
56,913
73,211 77,187
63,546
79,839
1,46,371
5,131
7,873
11,707 5,601 12,582 29,569
0
50,000
1,00,000
1,50,000
2,00,000
2017 2018 2019 2020 2021 2022
EBITDA Margin (Rs cr)
Revenue EBITDA
56,913
73,211 77,187
63,546
79,839
1,46,371
1,554 7,651 8,121 5,291 7,873
20,938
0
50,000
1,00,000
1,50,000
2,00,000
2017 2018 2019 2020 2021 2022
PAT Margin (Rs Cr)
Revenue PAT

6. 6
Indian steel sector demand production and consumption
India’s finished steel consumption is 105.751 MT in 2022 and is anticipated to increase to 230 MNT
by 2030-31.
India is fifth largest home for iron ore in world
JSW is present in strategically located geographies across India, USA and Italy. The majority of JSW’s
capacity is fulfilled by their four integrated steel plants (ISPs) at Vijayanagar, Dolvi, Salem and in
Odisha.
13 mines across Karnataka and Odisha, which provides long-term iron ore supply and price security.
Manufacturing facilities present in
Sr No Manufacturing facilities Capacity Key products
1 Vijaynagar Works, Karnataka 12 MTPA Hot rolled, Cold
Rolled, Galvanized and
Galvalume, wire rods
and TMT, Slab billets
2 Dolvi Works, Maharashtra 10 MTPA Hot rolled, TMT, billets
3 Salem works, Tamil Nadu 1 MTPA Wire rod, alloy long
products,
billets/blooms
4 Bhushan Power and Steel, Karnataka 2.5 MTPA
5 Salav Works, Maharashtra 1 MTPA Direct reduced iron,
briquetted iron
products

7. 7
Downstream Operations
Sr No Downstream operations present in Capacity Key products
1 Anjar Works 1.2 MTPA Steel plates and coils
2 Vasind works 1.32 MTPA GI/GL, colour-coated
products
3 Kalmeshwar Works 0.95 MTPA GI/GL, colour-coated
products
4 Tarapur Works 0.73 MTPA GI/GL, colour-coated
products, tin plate
5 JSW Ispat Special Steel Products Ltd 1.2 MTPA Crude steel Crude
steel, HR plates,
rebars, special steel
6 JSW Vallabh Tinplate Pvt Ltd 0.1 MTPA Tin plate
7 Vardhaman Industries, Ltd 40,000 tonnes (per
annuam)
Colour-coated
products
8 Asian Colour Coated Ispat Ltd 1MTPA HRPO, GI/GL and
colour-coated
products

8. 8
International Manufacturing Facilities
Sr No International Manufacturing
Facilities present in
Capacity Key Products
1 JSW Steel USA (Ohio) 1.5 MNTPA Crude
steel
2 JSW Steel USA (Baytown) 1.2 MNTPA Plate mill
0.55 MNTPA Pipe mill
3 JSW Steel Italy (Piombino) 1.3 MTPA Rails, wire rods, bars
and grinding balls
JSW’s sector wise consumption of steel
Automotive Industry: Automotive industry accounts for 10% of total steel consumption in India.
On an average 900 Kg of steel is used per vehicle. Steel is used to manufacture parts such as
suspension, Engine components, chasis components, fasteners, ball bearings.
Products by JSW steel for automotive industry: Cold roll, Hot roll, Galvanized, Special alloy steel.
JSW’s clients: Volkswagen, Maruti Suzuki, Honda, FORD, TATA
General engineering: General engineering accounts for 20% for total steel consumption in India
JSW has become one of the most trusted suppliers of high-grade steel, by adding an edge of
durability & reliability to the projects they undertake. Steel is used to manufacture panel
manufacturing, packaging fabrication, drums, barrels and furniture in general engineering category.
Products by JSW steel for general engineering: Cold roll, Galvanized, Galvalume.
JSW’s clients: Blamer Lawrie, Rolastar, Godrej Interio, ITW, Sleek by Asian Paints.
Building and construction: Building and construction accounts for 40% of total steel consumption
in India, Today, construction is the largest economic activity, second to only agriculture. And that’s where
JSW Steel comes in, they provide steel to sectors like telecom, building construction, shed construction,
Road and rail construction, bridges, ports, airline, powerplant construction

9. 9
Products offered by JSW steel are: Hot rolled, Color coated, Galvanized, TMT bars, Wire rod, Special
alloy steel.
Clients of JSW: L&T, Pennar, Kirby, TSE, Tata blue scope steel
Brands and Products by JSW:
1. JSW Silveron+
Premium category of roofing sheets which prevents early corrosion comes with 7-year warranty.
With Al-Zn coating.
2. JSW Everglow
Colour coated roofing sheets. Offers colours like strewberry red, graphite grey white and midnight
blue to name a few.
3. JSW Colouron +
Premium colour coated roofing sheets which comes with Al-Zn coating offering features such as
anti-corrosion, all weather protection, ISI certified, Superior paint technology.
4. JSW Pragati+
Colour coated sheets
5. JSW Vishwas
Offers premium Al-Zn sheets and premium GC sheets.
6. JSW Galvos
Offers premium Galvalume coils and sheets.
7. JSW Galveco
Offers load free Galvanised sheets which are lead free making them 100% eco-friendly.
8. JSW Platina
JSW tinplate products used for food and non-food packaging offers features like long shelf life, UV
rays’ bacteria protection, aroma and flavour retention, Pilfer & Temperproof, Excellent printability,
Eco friendly.
9. JSW Neo steel
Pure TMT bars for construction
10. JSW Trusteel

10. 10
Premium hot roll sheets used for manufacturing a variety of end products ranging from pipes and
tubes, used in automotive manufacturing, used for manufacturing CNG
11. JSW Avante
Smart steel doors offering features like weather proof, termite proof, fire resistance, ecofriendly.
12. JSW radiance
Colour coated sheets and coils
Growth drivers for steel industry in India
There are several initiatives and projects undertaken by India we can expect a positive outlook for
steel industry some of the projects are as under
● National Infrastructure Pipeline: The National Infrastructure Pipeline (NIP) is a group of social
and economic infrastructure projects with total project capital expenditure in infrastructure sectors
in India during FY 2019 to 2025 projected at over INR 102 lakh crore. During FY 2020 to 2025,
sectors such as Energy (24 per cent), Roads (19 per cent), Urban (16 per cent), and Railways (13 per
cent) will amount to around 70 per cent of the projected capital expenditure in infrastructure in
India.
● Housing for all by 2022 scheme: 10-12 Mn houses in urban and 29.5 Mn units in rural areas to
be constructed with potential steel demand of 50-60 MT.
● Jal Jeevan: Investment of INR 3.5 trillion (~USD 47 Bn) by FY24 envisaged to develop in-village
piped water supply and infrastructure to provide tap water connection to every rural household with
potential steel demand of 11-13 MT.
● Bharatmala Project: 9,000 kilometers of economic corridors, 6,000 kilometers of inter-corridors
and feeder roads, 5,000 kilometers of national corridors, 2,000 kilometers of border and
international roads, 2,000 kilometres of coastal and port roads, and 800 kilometres of expressways
to be constructed with potential steel demand of 18-20 MT.
● Sagarmala Project: INR 6 trillion (~USD 81 Bn) to be spent for port modernization, improving
port connectivity, industrialization of ports and coastal community development through >574

11. 11
projects over 2015-2035 with potential steel demand of 13-15 MT. mobilization of over USD 58 Bn
of infrastructure investment in ports and shipping is estimated to drive steel demand in the future.
● Freight Corridors: 10,000 kilometers (4 corridors) to be constructed of which 1,949 kilometers
have been constructed with potential steel demand of 6-7 MT.
● UDAN: 100 new airports to be established by 2024 as air fleet number rises from present 600 to
1,200 during this time with potential steel demand of 7-9 MT.
Demand Overview
In FY22, demand for steel is expected to increase by 17% to 110 million tons, driven by rising
construction activities.
Government has taken various steps to boost the sector including the introduction of National
Steel Policy 2017 and allowing 100% Foreign Direct Investment (FDI) in the steel sector under
the automatic route. According to the data released by Department for Promotion of Industry
and Internal Trade (DPIIT), between April 2000-March 2022, Indian metallurgical industries
attracted FDI inflows of US$ 17.1 billion.
(A) Automobile sector is expected to sustain the steel demand in mid to long term, owing to
the ambitious Automotive Mission Plan 2026.
(B) Indian Railways has proposed to spend INR 2 lakh crore a year till 2023-24 to upgrade
infrastructure, providing opportunities for increased demand of rail steel. Further, Indian
Railways’ plans of decongestion through multi-tracking, high speed projects and
concentrated focus on 58 super critical projects are expected to increase the steel
demand at a higher pace. In addition, Dedicated Freight Corridor projects are expected
to consume 17 MT of steel in the next 5 years (2020-25).
(C) The Indian Army, Navy and Air Force along with DRDO and the Ordnance Factory have
expressed the great potential for domestic fulfilment of special steel alloy requirements
in the defence sector.

12. 12
Industry overview
Currently, Indian steel industry has a steel capacity of 122 million tons (2015-16) and the world is
producing 1630 million tons of steel. India has an aspiration to take this capacity to 300 million tons
by 2030. Today steel industry contributes approximately 2% to our country’s GDP and employs 5
lakh people directly and about 20 lakh people indirectly.
India is 2nd
largest crude steel manufacturing country followed by China.
World’s top steel producing nations
Sr No Top 10 steel producing countries in
2022
Market share
1 China 996 million tons
2 India 111 million tons
3 Japan 90 million tons
4 USA 72 million tons
5 Russia 70 million tons
6 South Korea 67.1 million tons
7 Turkey 42 million tons
8 Germany 40 million tons
9 Brazil 37 million tons
10 Iran 29 million tons
India steel data
Year Crude
steel
Capacity
MNT
Crude
steel
Production
MNT
Export
MNT
Imports
MNT
Net
Exports
MNT
Consumption
MNT
Capacity
Utilization
%
Export
dependency
%
Import
dependency
%
FY 2016-17 128.3 97.9 9.4 8.0 1.4 84.0 76.3% 9.6% 9.5%
FY 2017-18 138.0 103.1 11.6 8.4 3.2 90.7 74.7% 11.3% 9.3%
FY 2018-19 142.2 110.9 8.5 8.8 -0.3 98.7 78.0% 7.7% 8.9%
FY 2019-20 142.3 109.1 11.2 7.2 4.0 100.2 76.7% 10.3% 7.2%
FY 2020-21 143.9 103.5 17.4 5.0 12.4 94.9 71.9% 16.8% 5.3%
FY 2021-22 154.3 120.0 18.4 4.8 13.6 105.8 77.9% 15.3% 4.5%
Indian steel production and consumption over year and GDP
Year GDP (%) Indian steel production (MnT) Indian finished steel
consumption (MnT)
FY 2019-20 4.2 109.1 100.2
FY 2020-20 -6.6 103.5 94.9
FY 2021-22 8.7 120.0 105.8

13. 13
Production process
About 3,000 years ago, our ancestors discovered that heating rock rich in iron over a charcoal fire
rendered a liquid metal that, when cooled, became malleable. Most of today’s iron is made using
the same principle: melt the ore (with lime) in a huge blast furnace powered by coking coal to over
1,600°C, and out comes the liquid iron.
Steel is made from iron ore, a compound of iron, oxygen and other minerals that occurs in nature.
The raw materials used for steel making are Iron ore, coke/coal, fuel gasses (Production gas, Natural
gas, LPG, acetylene, coke oven gas, blast furnace gas, converter gas) Flux and Alloying elements
like limestone and dolomite used for steelmaking are mined and then transformed into steel using
two different processes: the blast furnace/basic oxygen furnace route (BF-BOF), and the electric arc
furnace route.
Blast furnace route: The common inputs for BOF steelmaking are iron ore and coal
Electric arc furnace: The EAF furnace operates using scrap steel – steel already produced and ready
to be recycled using electricity. The molten steel is extracted from the furnace and used in the
casting process where the steel is allowed to pass through a set of rolls and water sprays. This rolls
the steel to the correct shape and becomes solid. Then the steel is flattened and cut at required
dimensions, which forms slabs, billets, and blooms.

14. 14
Sourcing of raw material
The raw materials are majorly sourced through mines in mine rich states in India such as Odisha
which accounts for more than 55% of total iron production followed by Chhattisgarh producing
almost 17%, followed by Karnataka and Jharkhand producing 14% and 11% respectively.
Coal is essential raw material but due to global supply-demand mismatch has resulted in its lesser
availability for hedging risk JSW steel has formulated certain ways
(A) Entering in long term contractual agreements
(B) In India JSW secured the ‘Moitra’ coking coal block in Jharkhand in 2015
(C) Acquired coking coal mines in West Virginia, US, and coal mining concessions in Mozambique.
(D) Participating in auction for newer coal mining license.
(E) Setting up 8MTPA pellet plant and 1.5 MTPA coke oven plant at Vijayanagar In order to decrease
the facility’s requirement of expensive lump iron ore
All these activities have significantly reduced JSW’s dependence for procurement of raw material
and in turn reduced the cost of production.
Price for raw material
Most top steel producing companies in India have their captive mines for sourcing raw materials
• Average coal price in India: ₹7500/Ton.
• Average Iron price in India: ₹ 4,400/Ton.
• Average coal price in the world 205 UDS/Ton.
• Average iron ore price in world is 82.10 USD/Dry metric ton.

15. 15
Finished products
JSW offers a variety of finished steel products which are further procured by several sectore to
further process it according to their needs
Hot roll: Mostly used for construction, Pipe, tube, Truck, Frames used in industries such as
infrastructure, construction
Cold roll: when hot roll steel is further processed, used in automotive industry and general
engineering.
TMT Rebars: Used in construction works
Wire: Used for cleaning, for spring-loaded devices, for reinforcing, for structural integrity
Colour coated roofing sheets: Coated products business has become key driver in success story.
JSW steel coated product limited (JSWSCPL) is India’s largest manufacturer and exporter of colour-
coated steel products, commanding ~60% market share in India in this space. Used for house roofin
solutions
Finished products supply chain
JSW has a total of 376 distribution centers all through India, and 1,301 retail store
JSW’s Growth outlook
JSW’s current capacity is 27 MTPA which it plans to expand up to 37 MTPA by 2025
The government’s infrastructure push and an opportunity to leverage the gap created in the
international market by recent geopolitical events have created an unprecedented momentum for
the Indian steel industry. JSW Steel is well-aligned with these developments and the larger India
growth story with its increasing demand for steel in various sectors.
Roadmap of JSW steel to 37 MTPA by FY 2024-25
Key projects to augment installed capacities:

16. 16
(A) Commenced 5 MTPA brownfield expansion project at Vijayanagar with a comparatively lower
capex of `20,000 crore
(B) Incremental expansion at Vijayanagar of existing facilities to enhance capacity by a further 2.5
MTPA (1+1.5) in phases
(C) The expansion at Bhushan Power and Steel Limited (BPSL) to 3.5 MTPA is progressing well and is
expected to be completed in FY 2022-23. Long lead-time items have been ordered for the Phase-II
expansion from 3.5 MTPA to 5 MTPA and the project is expected to be completed by FY 2023-24
(D) Organic brownfield (BF) capacity expansion capex well below global benchmarks of replacement
cost of $1,000/ tonne for BF-based capacity
Near-term & Long-term outlook of JSW steel
(A) Complete the capex projects as per stated plan and reach steelmaking capacity of 37 MTPA by
FY 2024-25. Long-term outlook
(B) Complete the development and commissioning of the upcoming 13.2 MTPA greenfield steel
plant in Jagatsinghpur district, Odisha, along with a 900 MW captive power plant; the plant will play
a key role in the growth story of both JSW Steel’s and India
(C) Continue to leverage their proximity to iron ore reserves and existing logistics infrastructure to
expand production capacity at a low investment cost per ton
(D) Maintain and grow JSW’s share of steel production in India, contributing to India’s National Steel
Mission
(E) Maintain a domestic market share of 15% through selective inorganic and organic growth
(F) Continue to undertake brownfield expansions in the domestic market, which can be
accomplished at a low specific investment cost per ton, and consider inorganic growth
opportunities that are value-accretive
(G) Consolidate their presence as a true global player, with the world as market for their high-end
steel products

17. 17
Bhushan Power and steel: The company is unlisted subsidiary of JSW steel BSPL currently
operates with an installed steel capacity of 2.7 MTPA.
BPSL is currently planning to expand its capacity in two phases
Phase 1: Expansion of capacity from 2.7 MTPA to 3.50 MTPA in Phase-I with an additional
investment of ` 1570 crores.
Phase 2: BSPL will expand its capacity from 3.50 MTPA to 5.0 MTPA in Phase-II with an additional
investment of ` 2070 crores.
These expansion projects will be commissioned in phases in current and next financial year. The
acquisition is in the nature of strategic investment and is expected to enhance the Company’s
domestic presence, especially in the eastern region.
Q4 2022 Steel sector overview globally and in India
In the beginning of calendar year most companies expected stability and recovery form disturbed
supply chain because of covid but unfortunately conflict between two large commodity exporting
countries that is Russia and Ukraine and slow down in second largest economy in world that is
China both together created issues that were not anticipated.
As far as India is concerned quarter on quarter steel production has picked up and seen a 7%
growth in India’s steel consumption.
Performance of JSW in Q4 2022
JSW has performed quite well with highest ever volume of production and sales on standalone basis
JSW achieved a production of 5.0 MNT and sales of 5.13 MNT consolidated sales of 6.14 MNT
JSW was able to reduce their inventory by almost 3,86,000 tons in the last quarter and has achieved
a total 17.62 billion tons of production sales for FY 22 is 16.35 MNT 95% growth EBITDA on
consolidated basis was ₹ 9184 crore, PAT on consolidated accounts was ₹ 3343 crore NET debt was
brought down to ₹ 86723 crore debt to EBITDA ratio is 1.46 and debt to equity ratio is 0.86 under
their capex program that they have undertaken many projects got commissioned if we look at it at
Vijayanagar 5 year expansion plan

18. 18
Sr
no
Heads Unit Standalone Consolidated
1 Production MNT 5.01 MNT 5.98
2 Sales MNT 5.11 MNT 6.14
3 EBITDA ₹ 6,907 Crore -
4 PAT ₹ ₹ 3343 crore -
5 Debt ₹ ₹ 56,650 crore -
Q1 2023 sector overview globally and in India
This quarter has gone by one of the one of the toughest on the back of Russia and Ukraine war
which brought extreme uncertainty, the pattern of global trade has changed and world witnessed
largest ever increase in prices. With the sanction on Russia and trade restrictions, labor shortages
and logistic bottlenecks had brought a lot of uncertainty and volatility in the market. To contain
inflation was the major objective of several countries and government they have changed the
policies and priorities.
The Indian government in line with controlling inflation, imposed export duty in the month of May
2022, imposed duty of 15% on the export of steel. Due to imposition of export duty steel export from
India came down by 26% All this together was a challenging quarter but interesting if we see world
steel industry overall steel production has increased quarter on quarter basis. China’s quarter on
quarter steel production went up by 16.5% it produced 281 MNT.
Country by country there is more production, export and the imports have reduced. Which caused
the steel prices to dip, the steel prices globally have fallen over 20%.
Indian steel production has sequentially fallen quarter on quarter basis but it has increased year on
year.
Performance of JSW steel in Q1 2023
JSW have produced 5 MNT of crude steel on standalone basis, if we consider production with
Bhushan power and steel the total production stood at 5.62 MNT. Consolidated sales along with
BPSL was 4.33 MNT, Capacity utilization in BPSL is 89% as JSW has moderated the production or it
could have been higher. The exports came down by 35%. EBITDA was 8311 Rs per ton, The business

19. 19
has not done well because of huge amount of inventory loss in the company. Overseas operations
contributed 276 cr.
Imposition of export duty has put additional burden of Rs 242 crore. Consolidated PAT stood at ₹
839 crore, net debt has increased by ₹10,574, this debt is majorly on the account of inventory
aggregation net debt was ₹ 67,224 crore. Investment in the working capital was ₹ 7874 crore.
Foreign exchange translation increased the debt by ₹ 1400 crore
Debt to equity ratio is 0.98, and debt to EBITDA ratio is 2.03.
Sr
no
Heads Unit Standalone Consolidated
1 Production MNT 5.00 5.62
2 Sales MNT 4.03 4.33
3 EBITDA ₹ 3,352 Crore -
4 PAT ₹ 839 Crore -
5 Debt ₹ 67,221 Crore -
Q2 2023 steel sector overview in world and in India
In Q2 2023 the world has witnessed two major crisis one very high inflation rate and second very
high energy prices to address these two crisis macroeconomic stability and reducing surging
inflation have become key objectives of many countries. In calibrating their monetary and fiscal
policy so since the starting of 2022 over 90 central banks in the world aggressively increased the
interest rates. The fall out of that is very tough financial conditions, narrowing liquidity in the global
market which is also impacting the overall outlook for growth but these aggressive monetary
policies are not addressing supply side issues inflation remains stubborn, all the countries and the
central bank continues their path of increasing the interest rates. There was a rapid cutback in the
steel production in number of countries in first 8 months of calendar year the total steel production
cut was 68 MNT out of that 42 MNT was from China itself and 26 MNT was in the rest of the world.
What is interesting here is even though there was a drop of 26 MNT in rest of the world there are
two places where there is a positive growth that is India and second is Middle east when you look at
the numbers globally as regards to steel production cuts that are happening all across the world

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due to slowing demand, falling steel prices, elevated raw material costs, squeezing margins, 29 %
steel companies in China is very close to bankruptcy. That is where JSW is seeing a positive outlook
In India the domestic demand remains stable and strong, in manufacturing industry the capacity
utilization remains 75% which is largest level in the last 3 years, even though there are headwinds in
domestic economy by the way of slowing external demand, geopolitical crisis and surging of energy
prices JSW saw good traction and momentum in domestic market.
Performance of JSW steel in Q2 2023
JSW has achieved 4.95 MNT of crude steel production and total sales volume of 5 MNT on
standalone basis after including BPSL the total production stood at 5.58 MNT and sales stood at
5.63 MNT on a consolidated basis, sales volume went up by 47% quarter on quarter basis. Their
sales exports have fallen by 37%, the volume of exports in last quarter were 5,60,000 tonns. Which is
10% of total sales, retail sales, sales in renewable sector, sales to automotive sector have gone up in
last quarter have increased overall sale volume in domestic market, but margins were under
tremendous pressure reason being there is steep fall in net sales realization, net sales realization
have fallen by 14%. On standalone basis the EBITDA was ₹ 1742 crore and EBITDA per ton was ₹
3479.
Because of heavy monsoon, limited availability of iron ore and independent mining company
stopped mining JSW was not able to operate the BPSL plant smoothly. There was higher inventory
of hot roll coils which were at higher level so high cost inventory was to be absorbed so in turn BSPL
had shown a negative EBITDA. Even though there was appositive EBITDA from other subsidiaries the
overall consolidated EBITDA from domestic was a negative of Rs. 48 crores.
JSW stopped its operation in chile they sold their subsidiary having holding od 70 % the amount
was 335₹ and second exceptional item is BPSL had a coal mine which got canceled that increased
JSW’s expenditure which they claimed which was an exceptional item worth ₹256 crore these two
together were worth 591 crore.
One-off items in last quarter were ₹1480 crore, PAT was ₹915 crore, debt was ₹65,719 crore capital
expenditure was 81 million $, debt to equity ratio ws1.04 and debt to EBITDA ratio was 2.7

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JSW has achieved 11.19 MNT of crude steel production in the first half of 2023 and aims to achieve
a total production of 25 MNT, they to achieve the balance in second half similarly they aimed at
achieving a sale of ₹ 24 MNT in 2023, in first two quarter they have achieved 10.12 MNT.
Sr
no
Heads Unit Standalone Consolidated
1 Production MNT 4.95 5.58
2 Sales MNT 5.01 5.63
3 EBITDA ₹ 1,742 -
4 PAT ₹ ₹915 crore -
5 Net Debt ₹ ₹65,719 -
Performance of major subsidiaries, JV
Bhushan power and steel
Bhushan power and steel was established in 1970 in Chattisgarh, JSW steel acquired BSPL in march
2021 BPSL is having capacity of 2.75 MTPA. This acquisition gave JSW strategic presence in eastern
India. It manufactures mostly tor steel and wire rod it is a subsidiary of JSW steel JSW has 82.28%
share of BSPL. JSW Steel completed the acquisition process of Bhushan Power and Steel Ltd. (BPSL)
and turned around operations at BPSL recording an EBITDA of ₹ 6423 crores during 2022.
Bhushan power and steel has total installed capacity of 2.7 MTPA
JSW Steel Coated Products
Founded in 2013, JSWSCPL is India’s largest manufacturer and exporter of colour-coated steel
products, and a wholly owned subsidiary of JSW Steel. Here, they take their trademark steel, and
push it one step further with colour, texture and more, to create just the product you’re looking for.
With a strong focus on sustainability and innovation, JSWSCPL dominates the value-added product
market.
JSW ISPAT special products
steel plant at Raigarh that has a production capacity of 1.5 MTPA to produce HR plates, rebars and
structure profiles to cater to the rapidly growing infrastructure & construction industry. Established

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in 1994 Monnet Ispat & Energy Limited (MIEL), has a de-risked business portfolio that encompasses
manufacturing and marketing of Sponge Iron, Steel and Ferro Alloys. The name of the Company has
been changed to JSW Ispat Special Products Limited with effect from 23rd September 2020.