Slides
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Jindal Steel & Power Q3FY25 Earnings Presentation 30th January 2025
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Safe Harbour Statement This presentation may contain certain forward looking statements concerning steel sector, economy and JSP’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and the target countries for exports, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions with respect to investments, fiscal deficits, regulations, etc., interest and other fiscal costs generally prevailing in the economy. Past performance may not be indicative of future performance. We do not undertake to update our forward-looking statements. This presentation is not intended, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities in JSP or any of it’s subsidiary undertakings or any other invitation or inducement to engage in investment activities, neither shall this presentation nor the fact of it’s distribution form the basis of, or be relied on in connection with, any contract or investment decision. Few numbers in this presentation are purely indicative & provisional and could change later. Estimates regarding economy, steel & power sector, company and related areas are purely indicative and could change with market conditions and host of other factors. 2
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JSP is focused towards building world-class capabilities to make India self-reliant and a global economic powerhouse OVER 3 DECADES OF EXCELLENCE Building a nation of our dreams
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Company Snapshot Macro and Sectoral Update Business Update Social Initiatives Q3FY25 Results Project Update
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JSP at a Glance Strong Balance Sheet Sustainability Driven Expansion program to boost FCF Growth Focussed World's first and largest coal gasification plant for steel- making Scaling up world-class, integrated steel production capacity Targeting Net Debt / EBITDA < 1.50x through the cycle Innovative, value-added products to support India’s infrastructure creation High performance, customer-centric culture * 200 km eco-friendly slurry pipeline * Coal Pipe Conveyor Net Debt/EBITDA at 1.4x Positively impacting 2.5 million lives * Under Construction
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World-class assets – On the cusp of transformative expansion Integrated Value Chain Iron Making 10.42 MTPA 16.82 MTPA Steel Melting Shop (SMS) 9.60 MTPA 15.9 MTPA Finished Steel 7.25 MTPA 13.75 MTPA Plate Mill 2.5 MTPA 3.0 MTPA Bar Rod Mill 2.40 MTPA Special Profiling Mill 0.75 MTPA Wire Rod Mill 0.60 MTPA Rail Mill 1.0 MTPA Hot Strip Mill 6 MTPA CRM Complex 1.2 MTPA (Downstream) Raigarh (Chhattisgarh) BF 3.05 MTPA DRI 1.32 MTPA SMS 3.6 MTPA Plate Mill 1.00 MTPA Rail Mill 1.0 MTPA Special Profiling Mill 0.75 MTPA CPP 824 MW Angul (Odisha) CGP 225,000 Nm3/Hr BF 4.25 MTPA 8.85 MTPA DRI 1.8 MTPA 3.6 MTPA SMS 6 MTPA 12.3 MTPA Bar Rod Mill 1.4 MTPA Plate Mill 1.5 MTPA 2.0 MTPA CPP 810 MW Pellet Plant 1 & 2 - 12MTPA ACPP-II 1050 MW Hot Strip Mill 6 MTPA CRM Complex 1.2 MTPA Barbil (Odisha) Pellet Plant 9 MTPA Patratu (Jharkhand) Wire Rod Mill 0.60 MTPA Bar Rod Mill 1.0 MTPA Iron-ore: Tensa 3.11 MTPA Kasia 7.5 MTPA Liquid Steel 9.6 MTPA 15.9 MTPA Coal: Gare Palma IV/6 4 MTPA Utkal C 3.37 MTPA Utkal B1 & B2 8 MTPA Mozambique 5 MTPA South Africa 1.2 MTPA Australia 1.2 MTPA Mining Direct Reduce Iron (DRI) 3.12 MTPA 4.92 MTPA Blast Furnace (BF) 7.30 MTPA 11.90 MTPA Expansion Company Snapshot 6
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Company Snapshot Macro and Sectoral Update Business Update Social Initiatives Q3FY25 Results Project Update
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Macro and Sectoral Update India continues to be the spotlight of global steel growth 8 World India USA Japan China EU & UK 896 869 860 -3% -3% -1% -4% -3% -2% -1% 0% 840 850 860 870 880 890 900 CY23 CY24E CY25E Steel Demand (MT) Demand Growth (YoY%) 133 143 156 15% 8% 8% 0% 5% 10% 15% 20% 100 110 120 130 140 150 160 CY23 CY24E CY25E Steel Demand (MT) Demand Growth (YoY%) 1,767 1,751 1,772 -1% -1% 1% -2% -1% 0% 1% 2% 1740 1750 1760 1770 1780 CY23 CY24E CY25E Steel Demand (MT) Demand Growth (YoY%) 91 89 91 -4% -2% 2% -6% -4% -2% 0% 2% 4% 88 89 90 91 92 CY23 CY24E CY25E Steel Demand (MT) Demand Growth (YoY%) 139 137 141 -9% -2% 4% -12% -8% -4% 0% 4% 8% 134 136 138 140 142 CY23 CY24E CY25E Steel Demand (MT) Demand Growth (YoY%) 53 52 53 -3% -2% 2% -4% -3% -2% -1% 0% 1% 2% 52 52 53 53 54 CY23 CY24E CY25E Steel Demand (MT) Demand Growth (YoY%) Source: World Steel Association - Short Range Outlook Oct 2024
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Macro and Sectoral Update 9 China steel exports 1.3mt short of all time high exports, next to CY15; economy remains weak Crude Steel Production Steel Demand (Apparent Steel Consumption) 883 869 873 862 928 993 1054 1031 1016 1021 995 -2% 0% -1% 8% 7% 6% -2% -1% 0% -3% -6% -3% 0% 3% 6% 9% 600 700 800 900 1,000 1,100 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23 CY24F Production (MT) Production Growth (YoY %) 796 761 767 794 866 936 1018 986 961 933 883 -4% 1% 4% 9% 8% 9% -3% -3% -3% -5% -8% -4% 0% 4% 8% 12% 600 700 800 900 1,000 1,100 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23 CY24F ASC (MT) ASC Growth (YoY %) Steel Exports 25 43 49 56 62 94 112 109 76 70 64 54 67 67 91 111 73% 15% 14% 12% 50% 20% -3% -8% -7% -17% 25% 1% 35% 22% -30% 0% 30% 60% 90% 20 40 60 80 100 120 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23 CY24 China Steel Exports(MT) Exports Growth (%) China HRC Export Price (USD/t) 950 820 655 510 490 400 600 800 1,000 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Source: Production and Demand – WSD Report; Exports – Steelmint; HRC Export Price – Bloomberg
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▪ National Steel Policy, 2017 envisages India’s steel production capacity of 300mt by 2030 by enhancing domestic per capita consumption to 160 kg ▪ Steel capacity and production continues to rise in line with Govt’s vision of capacity/production of 300mt/258mt by 2030. Macro and Sectoral Update India Steel demand has increased progressively driven by government capex Source: JPC, Industry Reports 10 Crude Steel Production Crude Steel Capacity and Utilisation % 77 82 84 91 99 100 95 106 120 136 6% 3% 9% 8% 1% -5% 11% 13%14% -10% -5% 0% 5% 10% 15% 20% 50 70 90 110 130 150 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Consumption (MT) Growth (YoY%) 138 142 142 144 154 161 180 75% 78% 77% 72% 78% 79% 80% 65% 70% 75% 80% 85% 100 120 140 160 180 FY18 FY19 FY20 FY21 FY22 FY23 FY24E Installed Capacity (MT) Capacity Utilisation (%) Finished Steel Consumption 89 90 98 103 111 109 104 120 127 144 0 1% 9% 5% 8% -2% -5% 16% 6% 13% -10% -5% 0% 5% 10% 15% 20% 50 70 90 110 130 150 Year FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Crude Steel Production (MT) Growth (YoY%)
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India remains net importer in 9M FY25 ▪ Crude Steel production grew 6% QoQ during Q3FY25 to 38.4 mt and 4% YoY during 9MFY25 to 111.1 mt driven by higher capacity utilization especially from recently commissioned capacities. ▪ Finished steel consumption grew 4% QoQ during Q3FY25 to 38.7 mt and 11% YoY during 9MFY25 to 111 mt. Consumption continues to remain strong though moderating from previous quarters due to slowdown in government capex ▪ Total Steel Exports showed a growth of 44% sequentially during Q3FY25 mainly due to lower base effect. However, exports for 9MFY25 remained significantly depressed, down 56% YoY to 4.7mt as overseas markets also witnessed increased exports by China. ▪ Total Steel Imports moderated with a 13% sequential decline during Q3FY25 as import offers declined after the onset of investigations on imports from Vietnam. However, imports remained elevated at 8.1mt, YoY up 16% during 9MFY25. With domestic prices nearly at par with import parity and continued investigation on imports, imports are likely to decline further. Source: JPC India Steel Scenario – Q3FY25 Macro and Sectoral Update Crude Steel Production (mt) 36.5 36.2 38.4 106.7 111.1 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 +5% +6% +4% Finished Steel Consumption (mt) 36.0 37.1 38.7 100.1 111.0 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 +7% +4% +11% Indian Steel Imports (mt) Total Exports (mt) 3.1 3.2 2.8 7.0 8.1 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 -12% -13% +16% 1.4 1.3 1.8 10.7 4.7 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 +33% +44% -56% Total Imports (mt)
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Iron Ore fines and Lumps (Odisha Index) Fig in `/tonnes Source: Steelmint Coking Coal: Premium HCC (CNF Australia origin) Fig in USD/tonnes Domestic Pellet prices (Barbil) Fig in `/tonnes India HRC vs Rebar Fig in `/tonnes ▪ Domestic HRC prices continued to trend down during the quarter driven by higher imports. Imports, thought have started moderating, leading to marginal uptick in HRC prices ▪ TMT prices continued to outperform HRC as construction season led to strong TMT demand, while import pressure on HRC drove prices down ▪ Despite correction in HRC prices, Iron ore prices have remained largely stable with marginal correction recently. ▪ PHC prices remained weak in line with global steel prices Macro and Sectoral Update 45,000 50,000 55,000 60,000 65,000 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 HRC Mumbai (INR/t) TMT Mumbai (INR/t) 2,000 4,000 6,000 8,000 10,000 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Iron One Fines 62 Fe (0-10 mm) Iron One Lumps 63 Fe (5-18 mm) 6,000 7,000 8,000 9,000 10,000 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 175 225 275 325 375 425 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 12 Key Steel and RM Prices Trend
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Company Snapshot Macro and Sectoral Update Business Update Social Initiatives Q3FY25 Results Project Update
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Business Update Value added Product/Grade include Hight tensile, Heat-treated Plates & Coils, Rails, High tensile Structures & TMT (large dia), Alloy Wire rods, Fabricated Structures ✓ 54% share in construction & Infrastructure segment by strategically developing customized product offerings in Plates, Structural, Rebar & Fabricated Solution. ✓ Driving up overall share of VAG Products by developing grades for High CAGR sectors such as Shipbuilding, Renewables and Defense. ✓ Further strengthening value addition, JSP Forged Rail plant was approved by RDSO for commercial supply to Indian Rail network, placing JSP among one of the few integrated forged rail producer in the world. Sector wise & Value-added Sales Supporting the “Make in India” initiative 975 973 1035 62% 56% 60% Q3FY24 Q2FY25 Q3FY25 Value added Sales, 000'tonnes 40% 40% 43% 33% 31% 31% 11% 10% 12% 13% 15% 11% 4% 3% 4% Q3FY24 Q2FY25 Q3FY25 Sector wise Sales distribution Infrastructure Distribution Engineering & Packaging Building & Constr Automotive
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Business Update Retail segment comprises of TMT only ✓ Strong distribution channel of 47 Distributors and 6 functional yards ✓ Presence across India in all states with 4700 Dealer counts ✓ 16 Experience centers at strategic locations ✓ 51,000 influencers enrolled across 9 high growth states ✓ Retail product portfolio has been expanded with the introduction of the hollow sections. Retail Segment Performance Increasing customer reach through diversified distribution channels 3,250 3,250 3,250 1,100 1,450 Q3FY24 Q2FY25 Q3FY25 Dealers Count Additon # Dealer Q3 FY24 9,500 9,500 9,500 36,500 41,500 Q3FY24 Q2FY25 Q3FY25 Influencer Count Addition # Enrolled Influencers Q3 FY24 40% 54% 51% 60% 46% 49% Q3FY24 Q2FY25 Q3FY25 TMT Sales Distribution, in ‘000 tonnes Project Retail 603 416 510
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Company Snapshot Macro and Sectoral Update Business Update Social Initiatives Q3FY25 Results Project Update
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HEALTH & NUTRITION Kishori Express: Reduced anaemia among17,799 adolescent girls contributing to 8.03 lakh total beneficiaries. PM’s TB Mukt Bharat: Monthly nutrition support to 7,500+ TB patients, declared 10 GPs TB-free, with a cumulative 70% cure rate. Jindal Arogyam Hospitals: offering free care at OPJHRC, Raigarh to 49,294 beneficiaries (Q3, FY 2024-25) and setting-up Jindal Aarogyam Hospitals in Angul and Barbil. DRINKING WATER AND SANITATION: 12+ million benefited from water projects like tanks, borewells, and RO plants, 8 water ATMs and 7 Chilled Drinking Water Van. 17 EDUCATION O.P. Jindal Global University ranks no. 1 in QS World Rank, enrolling 12,500+ students yearly. O.P. Jindal University, a NAAC A+++ institution, educates 1,700+ students annually and is Chhattisgarh's No. 1 Green University. Jindal Asha extends special education and vocational skills to 309 special- needs children with a cumulative record of 5,739+ children in Odisha, Chhattisgarh, and Jharkhand SKILL DEVELOPMENT O.P. Jindal Community Colleges offer vocational skills in 14 trades, enrolling 765 candidates, and have trained over 1.63 lakh youths and 4,000+ trainers, with placement rate of 85%. Social Initiatives Empowering our Communities – Key achievements
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ENVIRONMENT AND AGRICULTURE Watershed: Integrated Watershed Plus program in Angul, with NABARD, benefited 5,500 farmers by reducing soil erosion and enhancing canopy coverage. Farm Mechanization: 3,961 marginalized farmer groups received modern agri-equipment. SUSTAINABLE LIVELIHOOD & WOMEN EMPOWERMENT Micro-enterprise for Women: 2500+ micro-enterprises for women have been supported ,has enhanced the supplementary annual income women over Rs. 50,000/-. 18 Social Initiatives SPORTS 535 Wushu, 50 archery, 184 football, and 100 hockey players trained for state, national, and international events. Our athletes have won 637 national and 8 international medals. SOCIAL INCLUSION In SNEH, 22,03,777 underprivileged people supported with hot cooked food and dry rations in different business locations with the cumulative coverage of over 10 million beneficiaries. Jindal Prayas Centre of Excellence provides holistic care and nourishment for 150 abandoned and impoverished children Empowering our Communities – Key achievements
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• International Woman of the Year Award 2023 to Smt. Shallu Jindal, Chairperson Jindal Foundation, by D' Tribes Chicago, USA • Global CSR Award 2024” by GEEF for CSR Management Company of the Year 2024 Category”. • National CSR Award’2022, by MoCA, GoI for o CSR in Aspirational Districts/Difficult Terrains in Eastern India o Contribution in National Priority Areas and support to differently abled • Women Achievers Award 2019 to Smt. Shallu Jindal, by ASSOCHAM • Best Women Empowerment Initiative’2023 by Interview Times • FICCI CSR Award 2022 for the fight against COVID-19 • Golden Peacock CSR Award 2019 & 2022 for CSR by the Institute of Directors • CSR Times Award-2024 for o Sustainable Livelihood o Eradicating Extreme Hunger, Poverty & Malnutrition • AIBCF CSR & Sustainability Award 2024, for Water Conservation and Management • CSR Journal Excellence Award-2023 & 2024 for contribution to the promotion of sports in rural and tribal areas. Social Initiatives Awards & Recognitions
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Company Snapshot Macro and Sectoral Update Business Update Social Initiatives Q3FY25 Results Project Update
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Q3FY25 Highlights – Consolidated Q3FY24 - ₹13,698 Cr Q3FY24 - ₹2,802 Cr ₹13,707 Cr ₹2,133 Cr Q3FY24 - ₹1,928 Cr Gross revenue* Q3FY25 ₹11,209 Adjusted EBITDA# Q3FY25 Adj. EBITDA per ton Q3FY25 Q3FY25 Result Q3FY24 – 1.94 MT Q3FY24 – 1.81 MT 1.90 MT Q3FY24 - ₹9,115Cr Steel Production Q3FY25 Steel Sales Q3FY25 1.40 Q3FY24 - 0.92 Net Debt Q3FY25 Net Debt to EBITDA(TTM) Q3FY25 1.99 MT ₹13,551 Cr Q3FY25 Highlights - Consolidated * Incl. GST (goods and service tax) and Other income # Adjusted for one-off FX Gain of INR 51 Cr in Q3FY25, INR 76 Cr in Q2FY25 and INR 41 Cr in Q3FY24 Q2FY25 - ₹13,025 Cr Q2FY25 - ₹2,124 Cr Q2FY25 - ₹860 Cr Q2FY25 – 1.97 MT Q2FY25 – 1.85 MT Q2FY25 - ₹12,464 Cr Q2FY25 – 1.21 ₹951 Cr PAT Q3FY25 Q2FY25 - ₹11,467 Q3FY24 - ₹15,472 21
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Consolidated Net Debt Movement (QoQ) (INR Cr) Consolidated Adjusted EBITDA Movement (QoQ) (INR Cr) Q3FY25 Result 12,464 13,551 2,249 As at 30th Sep’24 -298 Debt Repayment New Debt Raised -864 Change in Cash & Cash Eq. As at 31st Dec’24 2,124 2,133 Q2FY25 53 Volume -69 NSR 125 Cost -100 Subsidiaries Q3FY25 22 Net Debt and EBITDA bridge Capital Acceptances of INR 701 Crs as at Q3 FY25 and INR 688 cr at Q2 FY25 not included above
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Consolidated Performance 39,137 35,918 22,146 8,876 6,953 11,203 10,462 12,464 13,551 FY19 FY20 FY21 FY22 FY23 FY24 Q1FY25 Q2FY25 Q3FY25 Net Debt/EBITDA (x) Debt/Equity (x)Net Debt (INR Cr) 4.65 4.56 1.53 0.57 0.70 1.10 1.00 1.21 1.40 FY19 FY20 FY21 FY22 FY23 FY24 Q1FY25 Q2FY25 Q3FY25 1.2 1.2 0.9 0.4 0.3 0.4 0.3 0.35 0.39 FY19 FY20 FY21 FY22 FY23 FY24 Q1FY25 Q2FY25 Q3FY25 -65% -70% -68% Q3FY25 Result 23 Strengthening Fundamentals to Drive Sustainable Growth
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INR Crore Quarterly Performance Nine Month Performance Particulars Q3FY25 Q2FY25 Q3FY24 9MFY25 9MFY24 Gross Revenue* 13,707 13,025 13,698 42,519 42,366 Net Revenue 11,777 11,248 11,736 36,678 36,662 Adjusted EBITDA** 2,133 2,124 2,802 7,088 7,719 Depreciation + Amortization 698 696 636 2,077 1,827 Finance Cost (net) 313 326 315 971 974 PBT 1,199 1,213 1,927 4,272 5,078 Reported PAT /(Loss) 951 860 1,928 3,149 5,010 * Incl. GST (goods and service tax) and Other income ** Adjusted for one-off FX Gain of INR 51 Cr in Q3FY25, INR 76 Cr in Q2FY25 and INR 41 Cr in Q3FY24. Gain of INR 135 Cr in 9MFY25 and INR 38 Cr in 9MFY24. Q3FY25 Result 24 Financial Performance – Consolidated
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INR Crore Quarterly Performance Nine Month Performance Particulars Q3FY25 Q2FY25 Q3FY24 9MFY25 9MFY24 Gross Revenue* 13,395 13,433 13,485 41,758 41,658 Net Revenue 11,452 11,529 11,545 35,846 35,978 Adjusted EBITDA** 2,027 1,916 2,715 6,636 7,623 Depreciation + Amortization 571 573 559 1,708 1,654 Finance Cost (net) 133 167 195 483 711 PBT 1,473 1,224 1,994 4,672 5,389 Reported PAT /(Loss) 1,163 894 1,484 3,514 3,992 * Incl. GST (goods and service tax) and Other income ** Adjusted for one-off FX Gain of INR 134 Cr in Q3FY25, INR 24 Cr in Q2FY25, and INR 4 Cr in Q3FY24. Gain of INR 164 Cr in 9MFY25 and INR 61 Cr in 9MFY24. Q3FY25 Result 25 Financial Performance – Standalone
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Company Snapshot Macro and Sectoral Update Business Update Social Initiatives Q3FY25 Results Project Update
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Crude Steel Capacity (MTPA) 3.6 3.6 3.6 3.6 6.0 6.0 6.0 6.0 3.9 6.3 FY24 FY25 FY26E FY27E 9.6 9.6 13.5 15.9 Raigarh Angul Existing Angul Expansion 27 Project Update Proposed Capex Framework from FY26 to FY28 Particulars Amt in INR Crs Capex Carried Forward 7,388 Enhancement of projects 5,720 Integrated Supply Chain Projects 4,500 Sustenance Capex 2,900 Contingency 2,892 Total 23,400
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Blast Furnace Project Update 28 Project Status Update BOF Recent Photographs
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Slurry Pipeline Project Update RMHS 29 Project Status Update Recent Photographs
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ACPP2 Project Update CRM 30 Project Status Update Recent Photographs
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Thank you