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Jai Balaji Industries Limited

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Presentation on theme: "Jai Balaji Industries Limited"— Presentation transcript:

1 Jai Balaji Industries Limited

2 JBIL – A Brief Profile First Company in West Bengal to start operation by setting up a Sponge Iron Plant. Executed 1 MT fully integrated green field steel manufacturing facilities within a short span of 4 years . First to set up Waste Heat Recovery Power Plants in West Bengal. Presently, 111 MW Power Plants are operational. Presence in mineral rich states of the country viz. West Bengal, Chhattisgarh & Jharkhand. Entire value chain of steel manufacturing from processing iron ore to manufacturing finished products. Acquired Steel division of HEG Ltd. and Nilachal Iron & Power Ltd. in the FY Successfully raised equity from IPO, Private Placements and QIP Route.

3 Financial Indicators Share Price Movement

4 Financial Overview Particulars FY 06 FY 07 FY 08 FY 09 FY10 Sales
Rs in mn. Particulars FY 06 FY 07 FY 08 FY 09 FY10 Q1 FY11 Sales 8811.1 4143.9 Other Income 91.0 19.3 565.2 284.2 259.0 14.8 Total Revenue 8902.1 17233 4158.7 Less: Cost of Sales 7924.1 9206.6 3524.9 EBIDTA 978 1546.5 2897.1 1880.5 2612.2 633.8 Depreciation 103.9 234.2 433.5 507.9 692.9 178.2 EBIT 874.1 1312.3 2463.6 1372.6 1919.3 455.6 Interest 189.7 354.1 1101.7 1305.6 1427.1 299.4 EBT 684.4 958.2 1361.9 67 492.2 156.2 Tax provision 232.2 338 173.2 54.2 174.1 52.2 PAT 452.2 620.2 1188.7 12.8 318.1 104.0 EPS (Rs.) 9.6 13.16 25.23 0.27 5.66 1.63

5 Shareholding Pattern No. of shares 63.7 million Share Capital
Rs.637 million Market Cap Rs.16.5 billion Net Debt Rs.15.9 billion Net Worth Rs.9950 million Debt Equity Ratio 1.59

6 The Business Model (Full Flexibility)
Iron Ore / Fines Presently from Market Allocated (will take 3 Years) Non coking coal Dumri 37 MT by FY 11 Coking coal Rohne 17 MT by FY 12 Coal Washery 0.26 MT + Sinter 0.608 MT Coke Oven 0.35 MT by FY 12 (Coke Presently from Market) 1.0 MT DRI 0.45 MT + Pig Iron / Hot metal 0.51 MT 0.06 MT Induction Furnace Billets 0.473 MT Electric Arc Furnace 0.433 MT CPP 111 MW Ductile Iron Pipe 0.240 MT TMT Rods 0.300 MT Legend Installed Ferro Alloys 0.106 MT Under Installation Material Movement Sales Points Sales Free Fuel Power Captive Use

7 Project Implementation
2010 TPA Ductile Iron Pipe 30 MW Power 2009 25500 MTPA Ferro Alloy TPA Alloy Steel Billets 6.2 MW Power 2008 TPA MS Billets TPA Sponge Iron TPA Sinter Plant 12.8 MW power 2007 51000 TPA Ferro Alloy TPA MS Billets TPA Re-Rolling Mill TPA Pig Iron 50 MW Power 2006 88210 TPA MS Billets TPA Coal Washery 2005 31118 TPA Ferro Alloy 88210 TPA MS Billets 40250 TPA Pig Iron Plant 12 MW Power Plant 2004 TPA Sponge Iron 2003 Journey of the excellent project execution 40250 TPA Pig iron Plant 80000 TPA Re-Rolling Mill 2001 79200 TPA MS Ingot TPA Sponge iron

8 Existing Facilities Existing Facilities Capacity Sponge Iron 445000 MT
Pig Iron MT MS Billets MT Alloy Steel Billets MT Ferro Alloy MT Sinter MT Rolling Mill MT Ductile Iron Pipes MT Coal Washery MT Captive Power Plant 111 MW Railway Rakes under WIS 4 (61 wagons each) Pvt. Railway Siding Durgapur , Muripar & Barbil

9 Brownfield expansions
Low Incremental Capex as compared to substantial margin expansion Capex Description Capacity Capex (mn.) Timeline Benefits Sponge Iron 0.06 MT 400.0 FY 11 JBIL will be short in captive metallics in the FY11. Proposed Unit planned at Jharkahnd where land and other infrastructure is already available and coal mine starting in the FY 2011. Non Coking Coal Mine and Washery Peak Capacity MT 950.0 Will reduce cost of DRI by around Rs.1400 per ton. JBIL has 0.45 MT existing DRI capacity. Reserves sufficient for more than 30 years. Coking Coal Mine Peak Capacity 0.56 MT 250.0 FY 12 Will reduce cost of hot metal by around Rs.5000 per ton. JBIL has 0.51 MT Blast Furnace capacity. Reserves sufficient for more than 30 years. Additional waste heat sufficient for 20 MW power. Coke Ovens 0.35 MT 3620.0 Roads & infrastructure for existing Durgapur plants 290.0 Since all the capex of the Durgapur plant is complete, Roads, Drainage and other infrastructure at the plant shall also be complete. Total 5510.0

10 Manufacturing Facilities post completion
Backward Integration Non Coking Coal Mine 37 Million tons Coking Coal Mine 17 Million Tons Sinter Plant [608000] Coke Oven [350000] Captive Power Plant [111 MW] Coal Washery [ ] 3 Private Railways siding 4 Railways rakes Metallic's [ ] Sponge Iron [545000] [510000] Pig iron Metal Capacity [906000] M.S Billets [473000] Alloy Steel Billets [433000] Finishing Lines TMT Rolling Mills [560000] Ductile Iron Pipes [240000] Ferro Alloys [106000]

11 Proximity to Raw Material and captive mines

12 Cost Effective Logistics Infrastructure

13 Existing Power Generation Capacities
The company is operating 111 MW of captive power at its integrated Power Plants . Power is generated by utilizing waste gases of Sponge Iron, Blast Furnaces & solid wastes such as dolochar & coal fines generated from the integrated operations. Total cost of power generation including depreciation & interest is around Rs.1.25 wherein cost of fuel is around Re.0.65 per unit. The Power plant has strong grid support wherein total power requirement for the integrated steel operation is approximately 145 MW. The company has tie-ups with DVC & DPL for the balance requirement of Rs.2.75 per unit. Power Plants eligible for CDM benefits under Kyoto Protocol.

14 Project Purulia – Green field expansion
5 MT Steel + 1215 MW Power 3 MT Cement Project Site 1130 Acres Land & Coal Blocks of Appx 700 Mn ton of Superior Grade Ranigunj Coal Update

15 Project Purulia- Updates & Plans
Signed MoA with the Govt. of WB to set up an 5 MT integrated steel plant, 3 MT Cement Plant and 1215 MW Power Plant at Raghunathpur, Purulia. JBIL has already been handed over approx 1130 acres of land for the project. Captive Coal Mines for steel making and power plants already available and under development. Water Drawl Permission, Railway Traffic Clearance & in-principle approval from State Electricity Board for construction power already in place. Application for environment clearance submitted, Public Hearing complete and TOR received. Project to be completed in modular fashions in phases. Phase I planned to be of 2 MT metallic and 400 MW of Power, work starting in the FY 2011.

16 Captive Resources – Coal Coking & Non coking
JBIL has been one of the largest allottee of coal blocks for captive consumption in steel making for its existing facilities and Greenfield Purulia project in West Bengal due to the excellent track record of project execution. Coking coal block of Rohne: JBIL's share in the reserves is 17m tons in Joint Venture with two other companies. The block is expected to commence in FY 12. Non-coking coal at Dumri: This coal block was allotted to its subsidiary, Nilanchal Ispat (NIPL), in Jharkhand. NIPL's share is 38m tons in this block. Forest clearance is expected soon because there are only few trees in the mine area. Mining is likely to commence in FY 11. Non-coking coal at Ardhgram, West Bengal: JBIL's share in reserves is 15-16%, equivalent to 4m tons. This is a small block where mining should start in 2-3 years. Non-coking coal at Andal, West Bengal: JBIL's share is 33%, equivalent to m tons. Coal mining will start in 48 months. Non-coking coal at Jagannathpur A & B, West Bengal: These blocks have been allotted to West Bengal Mineral Trading Development Corporation (WBMTDC). On 4 October 2007, Government of West Bengal (GoWB), West Bengal Industrial Development Corporation (WBIDC), WBMTDC signed an agreement with JBIL to provide these blocks to JBIL for setting up an integrated Greenfield steel plant. Already started exploration and drilling activities for development. Theses mines will be a source of low cost coal in three years

17 Thank You ! Safe Harbor Statement :
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints. Nothing in this article is, or should be construed as, investment advice.

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