JSW Steel trims FY24 capex by Rs 2,000 crore

JSW's revenue for the quarter reached Rs 41,940 crore

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26 Aug, 2025 12:21

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JSW Steel said on January 25 that the company expects to spend Rs 18,000 crore in 2023-24, down from Rs 20,000 crore planned earlier. The revised spending target comes amid the steelmaker's ambitious target to scale up its capacities to 50 million tonnes in the next three years.

Last year, the company pegged its capex at  Rs 20,000 crore amid plans to add nine million tonnes (mt) to its current capacity. The capex is part of the Rs 49,000-crore spend that JSW had outlined over a three-year timeframe.

Responding to a Moneycontrol query regarding the change in capex figure, Chief Executive Officer Jayant Acharya said, "It would get passed on to the next financial year, it's only a timing issue. There is no change in the focus of the capex."

Key projects to achieve the company's growth plans include incremental expansion at Vijayanagar of existing facilities to enhance capacity by further 2.5 million tonnes per annum (MTPA) (1+1.5) in phases and a 5 MTPA brownfield expansion at Vijayanagar announced with low capex of 15,000 crore.

"The 5 MTPA brownfield expansion at Vijayanagar is progressing well with construction activities for all packages underway," the company said.  On the other hand,  phase-II expansion (from 3.5 MTPA to 5 MTPA) at its subsidiary Bhushan Power & Steel (BPSL) is expected to be completed in FY24.

"The growth momentum for the Indian economy remains strong, driven by manufacturing and government spends on infrastructure. The central government capex has increased 31% during April-Nov 2023, supported by healthy tax collections. Election-related spending is likely to stimulate consumption in H1 CY24y," the company added.

The Sajjan-Jindal led company's net profit for the December quarter was Rs 2,450 crore, marking a 12 percent QoQ decrease but a substantial increase from Rs 474 crore a year ago.

Revenue for the quarter reached Rs 41,940 crore, with operating EBITDA at Rs 7,180 crore, down 9 percent sequentially. This decline was attributed to lower sales volumes and increased costs of iron ore and coking coal, partially offset by higher EBITDA from overseas operations.