JSW Steel Ltd (JSWSTEEL)
₹631.65▲2.16%
Key Stats
₹614.2
Day's Price Range
₹633.95
₹520.05
52-Week Price Range
₹790
| Returns | |
| 1 Month Return | -6.56 % |
| 3 Month Return | 6.8 % |
| 1 Year Return | -7.49 % |
Company Financials
Value in ₹ crore
Peer Comparsion
PE
Rank 2
9.52
EPS
Rank 2
₹64.89
BVPS
Rank 3
₹223.58
Dividend Yield
Rank 3
1.74%
ROE
Rank 1
30.24%
Price To Book Ratio
Rank 2
2.76
Debt To Asset
Rank 4
0.69
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Company Information
JSW Steel Ltd the flagship company of the JSW Group is an integrated steel manufacturer in India with an installed steelmaking capacity of 28 million tonnes per annum MTPA in India and USA. The company offers the entire gamut of steel products Hot Rolled Cold Rolled Galvanized Galvalume Prepainted Galvanised Prepainted Galvalume TMT Rebars Wire Rods Special Steel Bars Rounds Blooms. They have manufacturing facilities at Vijayanagar in Karnataka Dolvi Vasind Kalmeshwar Tarapur in Maharashtra Salem in Tamil Nadu and Texas in USA. JSW Steels plant at Vijayanagar in Karnataka is the largest single location steel producing facility in the country with a capacity of 12 MTPA. JSW Steel is part of US 15 billion O.P.Jindal Group. JSW Steel Ltd was originally incorporated as Jindal Vijayanagar Steel Ltd on March 15 1994. During the year the company entered into a technical arrangement with Voest Alpine Industrieanlagenbau VAI for technical details with respect to productivity iron ore technical details etc. The company set up two joint venture companies namely Jindal Tractebel Power Company Ltd and Jindal Praxair Oxygen Co P Ltd for supply of power of 2 x 130 MW of power and supply of Oxygen respectively. In the year l995 the company entered into a joint venture with Praxair to build and operate worlds largest cryogenic air separation plants for supply of oxygen nitrogen and argon to Jindals integrated steel facility in Bellary in Karnataka. In the year 1997 the company commissioned the BOF CCP Units to synchronize with the commissioning of the first unit of Corex. Also they entered into a joint venture with Mysore Minerals Ltd A Government of Karnataka Undertaking the Leaseholder of Thimmappanagudi deposits to form Jindal Mysore Minerals Mining Company Pvt Ltd. In March 1997 JVSL commissioned the first phase of the roughing mill of their hot strip mill. In the year 1999 the company entered into an agreement with the Steel Authority of India SAIL for procuring slab. They acquired 60 per cent stake in a citybased joint venture company Chemicon. Also they made an agreement with SaintGobain Glass India to install an air separation plant for the supply of nitrogen and hydrogen to SaintGobains float glass unit at Chennai. In the year 2000 the company implemented a total integrated resource planning solution for their business process which was the first of its kind in India. The company signed a Memorandum of Understanding MoU with miners in and around the companys captive mines located in the Bellary Hospet region in Karnataka. The MoU was signed for supplying iron ore fines for the companys pelletisation plant. JSW group acquired the company and took over the Management from November 2004. Salem Works is the only integrated steel plant in Tamil Nadu and is located at Pottaneri/M. Kalipatti villages and at about 35 kms from Salem. In 2005 JSWSL approved the merger of Euro Ikon Iron Steel Pvt Ltd Euro Coke Energy Pvt Ltd and JSW Power Ltd. The companys name was changed to JSW Steel Limited on June 16 2005.In January 2007 the company executed a Development Agreement with The Government of West Bengal West Bengal Industrial Development Corporation Limited WBIDC West Bengal Mineral Development and Trading Corporation Limited WBMDTC for setting up a 10 MTPA steel plant in suitable phases. JSW steel has inaugurated two exclusive JSW Shoppe in Hubli Karnataka on December 4 2007 At JSW Shoppe end consumer will also know about different application of different steel products being manufactured by the company through actual components and pictures from Automobile White Goods Sectors and Construction. In March 28 2008 the company incorporated a 100 subsidiary namely JSW Building Systems Ltd to design make prepare develop create alter replace repair prefabricated building systems and technologies. In April 10 2009 the 2.8 MTPA Crude Steel Expansion Project at Vijayanagar Works commenced commercial production enhancing the Crude Steel manufacturing capacity to 6.8 MTPA and scaling up the overall steel manufacturing capacity of the Company to 7.8 MTPA. In November 19 2009 the company signed a strategic collaboration agreement with JFE Steel Corporation the world renowned Japanese steel company at Mumbai. This collaboration agreement provides an ideal platform for both the steel companies to come together and leverage each others strength to their mutual benefit. In December 2009 the company commissioned the 30 MW Power Plant at Tarapur equipped with latest ESP system and designed for zero affluent discharge. Also the company entered into an agreement with Maharashtra State Electricity Distribution Co Ltd MSEDCL for sale of the surplus power. Since December 2009 the company has been selling the surplus power to MSEDCL. The stateoftheart new Hot Strip Mill with a capacity of 5 MTPA is being implemented in two phases. The PhaseI with a capacity of 3.5 MTPA has been successfully commissioned on March 28 2010. After successful trial runs the Mill commenced commercial operations on April 10 2010. In September 2010 they commissioned the 300 MW captive power plant at Vijayanagar works. Also they commissioned the phase of the Blooming Mill with capacity of 0.25 mtpa in Salem works. In December 2010 they commissioned the two of the four batteries Battery AB of coke oven 4 1.95 mtpa capacity in at Vijayanagar works. In January 2011 they acquired the assets of Integrated Steel Plant division of Bellary Steel Alloys Ltd. In February 2011 the company commissioned the Sinter plant 3 5.75 mtpa capacity at Vijayanagar works the largest such facility in India. In October 2011 the company signed a joint venture agreement with MarubeniItochu Steel Inc. Tokyo MISI to setup a steel processing center in North India under the name of JSW MI Steel Service Center Pvt Ltd. The company has decided to set up a new cold rolling mill complex of 2.3 mtpa in two phases at its Vijaynagar Works considering the growing demand from consumer durables and automobile segment for CRCA products. By 20122013 JSW Steel became Indias largest integrated private steel manufacturer with a combined capacity of 14.3 MTPA. On 1 October 2013 JSW Steel announced its plan to set up a second steel processing center in Indias automotive hue Pune Maharashtra with its joint venture partner Marubeni Itochu Steel Inc. Tokyo MISI. The first phase of the project is expected to come on stream by FY 2014 with an installed capacity of 1.8 lakh tonnes per annum and will be scaled up to 3.6 lakh tonnes per annum in phase two. The project will be set up at a capital cost of Rs 204 crore and will be funded through 50 equity and 50 debt element. On 5 October 2013 JSW Steel executed a Business Transfer Agreement with Heidelberg Cement India Ltd. for the acquisition of its cement grinding facility at Raigad Maharashtra as a going concern on slump sale basis. On 21 February 2014 JSW Steel announced that it has executed a legally binding Share Purchase Agreement and Shareholders Agreement with the shareholders of Vallabh Tinplate Pvt Ltd VTPL and VTPL to acquire 26 equity in VTPL immediately and increase its equity stake in VTPL to 50 in due course. The total investment to acquire 50 equity stake in VTPL is estimated to be a maximum of Rs 46 crore depending upon financial performance of VTPL. This acquisition marks JSW Steels entry into growing tinplate business in India. VTPL is currently operating a 60000 MT per annum tinplate manufacturing facility in Beopror Village Rajpura Patiala District in the State of Punjab in India. VTPL is owned by Vardhaman Industries Ltd VIL along with its promoters.On 25 April 2014 JSW Steel announced the launch of its Cold Roll Mill 2 CRM2 facility at Vijaynagar Works Karnataka. The new CRM2 complex with a production capacity of 2.3 million tonnes per annum MTPA is the most sophisticated plant by configuration with capacity to produce high strength and advanced high strength steel both in uncoated and coated categories and wider width up to 1870 mm. The CRM2 facility includes a Continuous Annealing Line which is the first to start operations in India. On 31 October 2014 JSW Steel announced that it has completed the acquisition of the entire shareholding of Welspun Enterprises Limited WEL held in Welspun Maxsteel Limited WMSL. Earlier on 18 August 2014 JSW Steel had announced that it has entered into a definitive agreement with WEL pursuant to which the company shall acquire the entire equity shares held by WEL in WMSL for an enterprise value of Rs 1000 crore plus net assets as of an agreed date of 31 August 2014. WMSL has installed capacity of 0.9 MTPA gas based DRI plant with a captive jetty and a captive railway siding. JSW Steel has surplus pellets in its subsidiary Amba River Coke Limited which will be supplied to WMSL. The cost of production of WMSL is expected to come down due to replacement of significant portion of its boughtout pellets with captive pellets. The DRI produced by WMSL shall be used partly by JSW Steels Dolvi unit and would be consumed in the entirety post completion of its ongoing expansion to 5 MTPA. WMSL also has vacant land of about 480 acres available for future expansions.On 24 November 2014 JSW Steel informed stock exchanges that it has submitted a binding bid for takeover of Rolling Mills of the Piombini Plant of Lucchini in Italy subject to certain terms and conditions. On 17 December 2014 JSW Steel announced that the company has decided to put on hold the implementation of its proposed 10 MTPA Greenfield steel plant project in West Bengal. Ban/restriction on iron ore mining in the country followed by cancellation of coal blocks including coal mines earmarked for the project brought severe uncertainty to the linkages of critical inputs for steel making. In this backdrop financing a capitalintensive Greenfield project will be very challenging. JSW Steel will continue to work with the West Bengal state government to find alternatives to establish raw material linkages for the project so as to take up implementation of the Greenfield project in due course. On 22 February 2016 JSW Steel announced that credit rating agency ICRA has revised its long term rating on the back facilities and nonconvertible debentures of the company downward by one notch. The downward revision in the long term rating takes into account the significant drop in steel prices due to downturn in the global steel industry and continued imports into India at predatory prices negatively impacting the companys profitability and cash accruals. On 17 August 2016 JSW Steel announced that it has completed the acquisition of 74 shareholding of Praxair India Private Limited in JSW Praxair Oxygen Private Limited JPOPL for a cash consideration of Rs 240 crore. Post the acquisition JPOPL has become a wholly owned subsidiary of JSW Steel. Earlier on 16 August 2016 JSW Steel executed a Share Purchase Agreement with Praxair India Private Limited to acquire their entire shareholding of 74 in JSW Praxair Oxygen Private Limited JPOPL for a cash consideration of Rs 240 crore. JSW Steel said this acquisition is strategic in nature as it will provide the company the benefit of backward integration. JPOPL is engaged in the business of production and sale of industrial gases such as oxygen nitrogen and argon and has set up two air separation plants each with a capacity of 2500 tonnes per day at Toranagallu Bellary District Karnataka. JSW Steel sources industrial gases from JPOPL amongst others at prices based on long term contracts.The Board of Directors of JSW Steel at its meeting held on 27 October 2016 approved the subdivision of each of the equity shares of the company having a face value of Rs 10 into 10 equity shares of a face value of Re 1 each. The Board also approved the raising of funds not exceeding Rs 2000 crores in the aggregate through the issuance of Redeemable NonConvertible Debentures either by way of a Public Issue or by way of a Private Placement and has authorised a subcommittee of Directors to decide on all matters relating to the proposed issuance of the Debentures including finalisation and approval of the detailed terms of issue. The issue proceeds would be majorly used for refinancing of expensive debt to meet long term working capital requirements to meet requirements for Normal Capital Expenditure and for General Corporate purposes.The Board of Directors of JSW Steel at its meeting held on 31 October 2017 approved to form a wholly owned subsidiary of the company in the name of JSW Utkal Steel Limited or such other name as may be approved by the Registrar of Companies with an initial investment of up to Rs 150 crore to undertake preliminary studies and for other costs. JSW Steel as a part of its growth strategy proposes to set up a steel plant in Odisha. Odisha provides a wonderful opportunity to build one of the worlds lowest cost and port based pellet and steel producing facilities and could be the next destination in the companys growth path to achieve its vision. On 20 December 2017 JSW Steel announced that it has commenced the national rollout of JSW Everglow a colourcoated steel product that aims to provide beautiful and innovative roofing and wall solutions for modern India.On 12 February 2018 JSW Steel announced that it has commenced iron ore mining operations in Tunga Mines which is of capacity 0.3 MTPA. The company commenced operations at the mine after receiving all the required clearances and final commencement letter from Department of Mines Geology Government of Karnataka. Earlier JSW Steel had announced on 7 October 2016 that it was declared as a preferred bidder for 5 iron ore mines having an estimated resource of 111 million tonnes in the auctions conducted for 7 Category C minutes conducted by the Karnataka state government during the period 1 October 2016 to 6 October 2016. On 26 March 2018 JSW Steel announced that its US subsidiary JSW Steel US Inc and the Office of Governor Texas USA have signed a Memorandum of Cooperation to develop and augment the steel industry in Texas. According to the Memorandum JSW Steel USA Inc has agreed to consider investment of up to USD 500 million in phases subject to EPA approval in developing its steel manufacturing infrastructure in Baytown Texas USA. As part of the Memorandum the Governor of Texas Greg Abbott has approved USD 3.4 million grant from the Texas Enterprise Fund to the company. The intended investment by JSW USA will be used to undertake capability enhancement of its plate and pipe unit located in Baytown Texas USA. The company will invest USD 150 million already underway to augment the units capabilities. This capex programme is expected to be completed by March 2020. JSW USA intends to use the rest of the investment up to 350 million to set up a new hot end facility to make their steel melt and manufacture. On 29 March 2018 JSW Steel announced that it has entered into a Stock Purchase Agreement with JSM International Limited Acero Junction Holdings Inc. and Acero Junction Inc. for acquisition of 100 shares of Acero Junction Holdings Inc. a Delaware Corporation for a cash consideration of USD 80.85 million. The transaction is subject to fulfilment of conditions precedent and other terms as per the Stock Purchase Agreement with a long stop date of 31 May 2018. Acero Junction Holdings Inc. owns 100 of the shareholding of Acero Junction Inc. which is a steel manufacturing mill that uses the electric arc furnace route to produce hot rolled coils. The acquisition provides a unique opportunity for JSW Steel to establish its presence in Ohio United States and gain deeper access to the North American market. The total Enterprise Value of the transaction is about USD 180.35 million with equity value of USD 80.85 million and liabilities of USD 99.5 million subject to closing adjustments. The acquisition shall be funded by way of a combination of internal accruals from JSW Steel and debt to be raised at Acero Junction Inc.On 2 April 2018 JSW Steel announced that the company in the capacity of an investor jointed Nu Metal Steel Pvt Ltd in submitting a binding bid for Essar Steel Ltd which is under the corporate insolvency resolution process as per the provisions of The Insolvency and Bankruptcy Code 2016 IBC.On 4 April 2018 JSW Steel announced that it has reported highest ever monthly crude steel production of 1.52 million tonnes for March 2018 with year on year growth of 5. The company also reported highest ever quarterly crude steel production of 4.31 million tonnes in Q4 March 2018 with year on year growth of 5. The company also reported highes ever annual crude steel production of 16.27 million tonnes with a growth of 3 over previous year.The Company had fifty direct and indirect subsidiaries and ten JVs as on 31 March 2019.Following the COVID19 outbreak in India the government announced the first phase of the nationwide lockdown for 21 days from 25 March 2020 to contain the spread of the infection. During the second phase of the nationwide lockdown that lasted till 03 Maycertain additional activities in noncontainment zones were permitted. The Company resumed operations at all locations with permission from the local administration to begin work.During the FY2021the company has completed acquisition of 13237227 equity shares representing 26.45 of the issued and paid up capital of JSW Vallabh Tinplate Pvt Ltd and consequently JSWVTPL has become wholly owned subsidiary of the company.The company has 51 direct and indirect subsidiaries and 8 JVs as on 31 March 2021.During the quarter ended 30 June 2021the company spent Rs 2688 crore on capexagainst the total planned capex spend of Rs 18240 crore for FY2022.During the quarter ended 30 September 2021the company spent Rs 3639 crore on capexagainst the total planned capex spend of Rs 18240 crore for FY2022.Pursuant to the Subscription and Shareholders Agreement between the Company with JSW Shipping Logistics Private Limited JSLPL and Piombino Steel Limited PSL the Company had subscribed to certain Optionally Fully Convertible Debentures OFCDs of PSL. As per the terms of OFCDs including revisions thereto subsequent to quarter end the Company has the option to convert the OFCDs into equity shares at any time at the option of the Company. Accordingly the Company has exercised the option of conversion of 4100000000 OFCDs held by the Company in PSL into 4100000000 equity shares of PSL of face value of Rs.10/ each on 01 October 2021. Pursuant to the conversion the Company holds 83.28 equity in PSL and JSLPL holds 16.72 equity in PSL.Consequently PSL has become a subsidiary of the Company and the Company will control and manage Bhushan Power Steel Limited through PSL w.e.f. 01 October 2021.On 01 October 2021 the Company acquired 80 shareholding in Neotrex Steel Private Limited NSPL by way of acquisition of Equity Shares and Zero Coupon Compulsory Convertible Debentures CCDs from Everbest Consultancy Services Private Limited and its wholly owned subsidiary Neotrex Steel Wires Private Limited at a value of Rs.11.45 crore and infused a further sum of Rs.32.55 crore in NSPL towards subscription money and has been allotted Equity Shares and Zero Coupon CCDs of NSPL at par value.Consequently NSPL has become a subsidiary of the company w.e.f. 01 October 2021.In accordance with the Share Subscription Agreement entered into with JSW Paints Private Limited on 23 July 2021 the Company has agreed to invest Rs.750 crore in JSW Paints Private Limited. During the quarter the Company has invested Rs.300 crore and has been allotted 16216215 equity shares which approximates to 7.5 of the issued and paidup equity capital of JSW Paints Private Limited.On 24 November 2021the company through its subsidiary PSL has completed acquisition of 100 shares of West Waves Maritime and Allied Services Pvt LtdWWMASPL from Magnificient Merchandise and Advisory Services Pvt Ltd for a consideration of Rs 0.31 crore.Consequently WWMASPL has become a step down subsidiary of the company w.e.f. 24 November 2021.During the quarter ended 31 December 2021the company spent Rs 4026 crore and the total of Rs 10353 crore till Q3 of FY2022 as against a total planned capex spend of Rs 18240 crore for FY2022.
| Organisation | JSW Steel Ltd |
| Headquarters | Mumbai |
| Industry | Steel |