Post on 15-Jan-2016
Jai Balaji Industries Limited
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First Company in West Bengal to start operation by setting up a Sponge Iron Plant. 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 .
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.
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.
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.
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 2007-08.
Acquired Steel division of HEG Ltd. and Nilachal Iron & Power Ltd. in the FY 2007-08.
Successfully raised equity from IPO, Private Placements and QIP Route. Successfully raised equity from IPO, Private Placements and QIP Route.
JBIL – A Brief Profile
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Financial Indicators
Share Price Movement
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Financial Overview
Particulars FY 06 FY 07 FY 08 FY 09 FY10 Q1 FY11
Sales 8811.1 10733.8 12907.6 16948.8 19143.8 4143.9
Other Income 91.0 19.3 565.2 284.2 259.0 14.8
Total Revenue 8902.1 10753.1 13472.8 17233 19402.8 4158.7
Less: Cost of Sales
7924.1 9206.6 10575.7 15352.5 16790.6 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
Rs in mn.
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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
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The Business Model (Full Flexibility)Non coking coal
Dumri 37 MT by FY 11Non coking coal
Dumri 37 MT by FY 11Coking coal
Rohne 17 MT by FY 12Coking coal
Rohne 17 MT by FY 12
Sinter0.608 MT
Sinter0.608 MT
Iron Ore / FinesPresently from Market
Allocated (will take 3 Years)
Iron Ore / FinesPresently from Market
Allocated (will take 3 Years)
DRI0.45 MT +
DRI0.45 MT +
Pig Iron / Hot metal0.51 MT
Pig Iron / Hot metal0.51 MT
Induction Furnace Billets0.473 MT
Induction Furnace Billets0.473 MT
Electric Arc Furnace0.433 MT
Electric Arc Furnace0.433 MT
Coal Washery 0.26 MT +
Coal Washery 0.26 MT + Coke Oven 0.35 MT by FY 12
(Coke Presently from Market)Coke Oven 0.35 MT by FY 12(Coke Presently from Market)
Ductile Iron Pipe0.240 MT
Ductile Iron Pipe0.240 MTTMT Rods
0.300 MTTMT Rods0.300 MT
Sales
Ferro Alloys0.106 MT
Ferro Alloys0.106 MT
CPP 111 MW
Material Movement
Legend
Sales Points
Free Fuel
Power Captive Use
Under Installation
Installed
0.06 MT0.06 MT
1.0 MT1.0 MT
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79200 TPA MS Ingot105000 TPA Sponge iron
40250 TPA Pig iron Plant80000 TPA Re-Rolling Mill
120000 TPA Sponge Iron
31118 TPA Ferro Alloy88210 TPAMS Billets40250 TPA Pig Iron Plant12 MW Power Plant
88210 TPAMS Billets216000 TPA Coal Washery
51000 TPA Ferro Alloy117610 TPA MS Billets180000 TPA Re-Rolling Mill428750 TPA Pig Iron50 MW Power
100000 TPA MS Billets220000 TPASponge Iron608000 TPASinter Plant12.8 MW power
25500 MTPAFerro Alloy433000 TPAAlloy Steel Billets6.2 MW Power
240000 TPA Ductile Iron Pipe30 MW Power
2001
2003
2004
2005
2006
2007
2008
2009
2010Project Implementation
Journey of the excellent project executionJourney of the excellent project execution
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Existing Facilities
Existing Facilities Capacity
Sponge Iron 445000 MT
Pig Iron 510000 MT
MS Billets 473000 MT
Alloy Steel Billets 433000 MT
Ferro Alloy 106000 MT
Sinter 608000 MT
Rolling Mill 260000 MT
Ductile Iron Pipes 240000 MT
Coal Washery 216000 MT
Captive Power Plant 111 MW
Railway Rakes under WIS 4 (61 wagons each)
Pvt. Railway Siding Durgapur , Muripar & Barbil
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Brownfield expansions
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 1.40 MT
950.0 FY 11 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 FY 12
Roads & infrastructure for existing Durgapur plants
290.0 FY 12 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
Low Incremental Capex as compared to substantial margin expansion
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Manufacturing Facilities post completion
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Proximity to Raw Material and captive mines
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Cost Effective Logistics Infrastructure
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Existing Power Generation Capacities
The company is operating 111 MW of captive power at its integrated Power Plants . 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.
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.
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 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 power @ Rs.2.75 per unit.
The company has tie-ups with DVC & DPL for the balance requirement of power @ Rs.2.75 per unit.
Power Plants eligible for CDM benefits under Kyoto Protocol.Power Plants eligible for CDM benefits under Kyoto Protocol.
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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
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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.
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. 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.
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.
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.
Application for environment clearance submitted, Public Hearing complete and TOR received.
Project to be completed in modular fashions in phases. 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.
Phase I planned to be of 2 MT metallic and 400 MW of Power, work starting in the FY 2011.
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Captive Resources – Coal Coking & Non coking
JBIL has been one of the largest allottee of coal blocks for captive consumption in steel making 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 for its existing facilities and Greenfield Purulia project in West Bengal due to the excellent track record of project execution.record of project execution.
Coking coal block of RohneRohne: 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 DumriDumri: 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 ArdhgramArdhgram, 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 AndalAndal, West Bengal: JBIL's share is 33%, equivalent to 229.50m tons. Coal mining will start in 48 months.
Non-coking coal at Jagannathpur A & BJagannathpur 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
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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.